New York City Mayor Eric Adams announced the Fiscal Year 2026 (FY26) Preliminary Budget on Thursday, January 16th. The budget showcases a $114.5 billion plan to make New York City safer, more affordable, and a better place to raise a family. The budget emphasizes public safety, housing affordability, education, and long-term infrastructure while maintaining strong fiscal management and achieving $3.4 billion in total savings over two years.
“Strong fiscal management, combined with our investments in making this a safer, more affordable city, is allowing us to make New York City the best place to raise a family,” said Mayor Adams. He highlighted the administration’s ability to save taxpayer dollars while funding programs without raising taxes or cutting services.
Adams said, “Our administration set the table for success by saving billions in taxpayer dollars, and now we are able to ensure the continuity of critical programs, as well as make the new, strategic investments that will move our city forward and improve quality of life for all New Yorkers without cutting services, laying off city employees, or raising taxes by a single penny.”
Fiscal Discipline and Economic Growth
The budget builds on a robust local and national economy, with $1.1 billion in revised tax revenue growth for FY25 and $2 billion for FY26. Cost-saving measures, including a forecast of asylum seeker expenses, have helped the city save $5.2 billion over three fiscal years. A record $8.5 billion in reserves, including $5 billion in the Retiree Health Benefits Trust Fund, positions the city to manage future uncertainties.
Safety, Housing, and Affordability
Mayor Adams reaffirmed his commitment to public safety with a $137 million allocation to expand programs for people experiencing homelessness, including additional Safe Haven beds, enhanced outreach, and new shelter options for vulnerable groups like expectant parents. The budget includes $5.5 million for swim safety programs and $3.9 million to improve intersection safety.
Affordable housing remains a priority, with the city introducing the “Axe the Tax for the Working Class” initiative to reduce personal income taxes, returning $63 million to working families. The administration has also committed $5 billion to housing and infrastructure as part of its “City of Yes for Housing Opportunity” zoning changes, which aim to create 80,000 new homes over the next 15 years.
Expanding Education and Community Programs
In education, $100 million will support Summer Rising programs for 30,000 middle schoolers, and $17.5 million will expand career readiness opportunities through the Pathways program. The administration also funds pre-apprenticeship programs to prepare low-income residents for unionized trade jobs.
Parks and public spaces will improve, with $12.4 million allocated for expanded cleaning in 64 locations and $4.8 million for staff at the new Shirley Chisholm Recreation Center in Brooklyn.
Infrastrature and Capital Projects
The city’s largest-ever 10-year capital plan will invest $170 billion to modernize infrastructure. Projects include $36.5 billion for water and sanitation, $32.1 billion for transportation, and $24.5 billion for affordable housing. Key projects include repairs to the Queensboro Bridge, upgrades at Governors Island, and new housing developments.
Mayor Adams’ FY26 Preliminary Budget highlights his administration’s commitment to building a safer, more affordable city while ensuring long-term financial stability. “ We are making major investments in affordable housing, addressing the severe mental health crises, keeping New Yorkers safe, providing our children with a world-class education and our families with affordable child care, developing major infrastructure projects and parks, investing in cultural institutions, and so much more. Our administration is working hard every day to deliver for working-class New Yorkers and make New York City the best place to raise a family,” Mayor Adams emphasized, reinforcing his focus on improving the quality of life for all residents.
