Acting Commissioner Michelle Morris told a joint hearing of the City Council finance and health committees on May 1 that New York City’s health department faces a volatile federal funding environment that could jeopardize core disease‑control and mental‑health services. “We have $600,000,000 in federal funding within the New York City health department budget,” Morris said, describing grant funding that supports dozens of programs and staff and warning that recent federal actions could put that revenue at risk.

The hearing focused on DOHMH’s FY26 executive budget and on how the agency is preparing for pending federal changes. Morris said a March federal announcement purporting to rescind $11.4 billion allocated by Congress for state and local pandemic recovery work has already put some awards in litigation. A coalition of states led by New York State Attorney General Letitia James secured a preliminary injunction in that lawsuit so the questioned money remains available for now, she said. Morris added that a separate White House “skinny” budget and the recent HHS reorganization — together with the firing or loss of many HHS staff — have created additional administrative uncertainty for grant execution and timely payments.

Why it matters: DOHMH relies on federal grants for immunizations, infectious‑disease work, HIV prevention and many mental‑health programs. Department leaders told Council members they are trying to replace some expiring federal American Rescue Plan dollars with city tax‑levy funding for FY26 and to prioritize funds to preserve continuity of care for people served by community providers.

Key program and funding items discussed

- Federal funding exposure: Morris said roughly $100 million of the city’s federal portfolio is currently the subject of litigation tied to the White House rescission; across DOHMH the agency receives approximately $600 million in federal grants. She identified CDC funding and Medicaid‑related flows as high‑risk categories.

- Mental‑health lineup: The department described FY26 executive plan items that preserve or expand core services previously supported with ARP dollars. Morris told Council that the FY26 executive maintains funding for intensive mobile treatment (IMT) teams, mobile crisis teams, Assertive Community Treatment (ACT/FACT) teams and school‑based programs; the executive replaces expiring ARP with city tax‑levy in several cases.

- 988 and crisis line performance: DOHMH officials said the city’s contract with Vibrant operates a 988 network handling roughly 335,000 contacts a year and that recent improvements mean about 90 percent of calls are answered within 30 seconds and that call volumes are expected to remain similar next year. Council members pressed for clarity about potential FY26 cuts flagged in the City Hall materials; department leaders said they had no planned FY26 Vibrant cuts in the executive plan.

- Mobile crisis and response teams: DOHMH staff described multiple response models: Be Heard (911‑originated social worker + EMS response, sometimes without police), 988‑initiated mobile crisis teams (social workers and peers responding within hours), and co‑response teams (a clinician paired with NYPD officers, typically for pre‑/post‑crisis follow‑up). The department said it funds 26 mobile crisis teams, 36 IMT teams and 80 ACT teams in combinations of city and state funding; staffing patterns vary by program and license.

- Justice‑involved supportive housing (JISH): Council members pressed the department on timing and use of several funding streams (including the City of Yes / 15/15 initiative and prior capital allocations) to expand JISH commitments tied to the 2019 consent agreement on Rikers. DOHMH said the JISH RFP remains open and that three providers currently operate the initial contracted units; capital and operating streams are handled across multiple agencies (DSS, HPD, HRA) and the department said it will provide contract award information on request.

- Clubhouses and small CBO mental‑health providers: Multiple witnesses — and DOHMH staff — said the city’s newly funded clubhouse program (12 of 13 clubhouses now open) is an effective peer‑driven recovery model. Community speakers and DOHMH staff urged baselining funding for smaller community clubhouses and for the council to consider multi‑year baseline support so providers need not re‑compete or rely on private fundraising.

- School‑based mental‑health clinics (Article 31/School Health): DOHMH said there are roughly 230 clinics across 375 schools and noted operational costs reside in the NYC Public Schools budget; the department provides technical assistance and some funding. Council members asked for a district‑level breakdown of clinic locations and counts; DOHMH agreed to provide that data.

- Syringe programs and community needle redemption: DOHMH highlighted a newly launched community syringe redemption pilot (initially 8 locations) and said 20,000 needles were retrieved in the first four weeks. The department also described 14 syringe service programs citywide plus outreach teams targeted to neighborhoods with high syringe litter and overdose rates.

- Animal‑welfare and related community pleas: While not part of DOHMH’s budget, many public witnesses urged city funding for Trap‑Neuter‑Return (TNR), citywide pet‑food pantries and other humane services; City Council members signaled interest in funding pilots and spoke to shelter and rescue overload.

What Council members pressed for

Council members repeatedly asked for more granular, auditable data and requested lists: which city‑funded programs are supported solely by city tax levy; the number and locations of school‑based clinics and school nurses (by council district); the status of JISH awards and 15/15 pipeline; and a breakdown of federal grant types and the programs they fund. DOHMH agreed to provide greater detail and follow‑up reports on contract timelines, head counts, and program start dates.

Discussion vs. decisions

Most items at the hearing were program updates and budget explanations. The hearing produced no formal legislative votes or binding Council actions; Council staff and DOHMH agreed to follow up with written data and contract award information. DOHMH described internal contingency planning to prioritize activities if federal grants are lost, but emphasized the limits of planning without final federal decisions.

Context and next steps

DOHMH described the FY26 executive plan as preserving many mental‑health core services while replacing some expiring federal one‑time funds with city tax levy where possible. Council members signaled continued oversight and asked the administration to baseline high‑impact, community‑delivered programs where possible to protect providers from funding churn. DOHMH promised to provide district‑level data and contract award lists and agreed to brief Council on specific program details called out in testimony (988 performance, JISH awards, school clinic mappings, and syringe redemption expansion).

Acting Commissioner Michelle Morris said at the hearing that the loss of federal funding would be “devastating” if it occurs and urged continued collaboration with state and city partners to preserve services and staff supported by federal grants.