DOHMH warns of federal funding cuts as City Council probes mental‑health budget and service capacity

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…