The Peru Gazette

Governor Commits $1 billion in City Fiscal Year 26 and $510 Million in City Fiscal Year 27, Including $510 Million in Recurring Funding 

NYS News Release of Feb. 16, 2026 – Governor Kathy Hochul and Mayor Zohran Mamdani today announced New York State will allocate an additional $1.5 billion in operating expenses over two years to help address New York City’s fiscal challenges. 

This additional funding includes $510 million in recurring funding targeted towards costs that had shifted from the state to New York City under prior administrations, including about $300 million for youth programming, a restoration of $150 million in sales tax receipts that would have otherwise been retained by the state, and $60 million for public health. The remaining $500 million will be targeted to shared priorities to be determined in subsequent discussions.

“A strong New York City means a stronger New York State. This investment protects services and puts the city on stable financial footing,” Governor Hochul said. “New Yorkers expect the state and the city to work together, and I’m proud to partner with the Mayor to deliver for working families.”

New York City Mayor Zohran Mamdani said, “Working New Yorkers did not create this budget crisis and they should not be the ones to pay for it. After years of staggering fiscal mismanagement under the previous administration, our city deserves responsible and collaborative leadership. I am heartened by this budgetary progress and Governor Hochul’s partnership at this critical moment. This is what it looks like to begin a new, productive, and fair relationship between City Hall and Albany – focused on delivering for working New Yorkers.”

Governor Hochul has increased support for New York City every year since taking office. This investment builds on her recent commitment to expand universal child care in New York City.

In recent weeks, the Mayor reduced New York City’s budget gap to $7 billion by deploying in-year reserves, committing to an agency savings plan, and incorporating higher-than-expected revenues. Together, the Mayor and Governor are forging a renewed partnership between City Hall and Albany focused on restoring fiscal responsibility and building a balanced budget that delivers for working New Yorkers.