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H+H says COVID reimbursements nearly exhausted, city asylum-site funding drops as HERCs wind down

May 26, 2025 | New York City Council, New York City, New York County, New York


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H+H says COVID reimbursements nearly exhausted, city asylum-site funding drops as HERCs wind down
H+H and City Council members used the executive budget hearing to review pandemic-era reimbursements and the shift in asylum seeker funding as emergency intake sites (HERCs) wind down.

H+H Chief Financial Officer John Uhlberg and Dr. Mitchell Katz said the system has claimed the large majority of federal reimbursements for COVID-related costs. Katz described roughly $3 billion in combined FEMA and Provider Relief Fund (PRF) reimbursements tied to the pandemic and said only a final FEMA tranche remains in processing; Uhlberg confirmed an amount in the executive plan of $212.2 million for FEMA reimbursements in FY25 and said additional smaller amounts were being processed.

On asylum seeker costs, the executive plan reflects substantial reductions from the preliminary plan. Committee members asked H+H to clarify the effect of closed temporary sites (e.g., Floyd Bennett, Creedmoor, Randall's Island) and HERCs. H+H said the closures have driven down city-funded asylum-site costs; OMB and H+H numbers in the executive plan reflect a $65.5 million reduction in city funding tied to closed sites and a larger reduction in state funding for FY25 and FY26 related to site roll-offs.

Council Member Gale Brewer and others asked whether, when HERCs close, asylum seekers will still have access to medical care. Katz and committee members said most asylum seekers receive New York City Care and are routed to community health centers and H+H hospitals; H+H said many providers and CBOs help with initial enrollment and first appointments. H+H indicated Roosevelt HERC was slated to close in summer 2025 and that remaining asylum care will be folded into standard shelter and health systems run with DHS and partner agencies, reducing separate line-item costs.

Ending: Council members asked H+H and OMB for complete accounting of FEMA, state and city asylum-related funds claimed and outstanding, and for dates on site closures; H+H said it would coordinate with OMB to provide finalized numbers.

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