NYC Reaches $125.8B Budget Deal; NYPD Staffing Increase Scrapped
Mayor Zohran Mamdani and City Council Speaker Julie Menin reached a last-minute handshake deal on June 30, 2026, for New York City's fiscal year 2027 budget.
Key Highlights
The agreement notably excludes an increase in NYPD staffing levels, contrary to earlier proposals in the executive budget.
A new rental assistance program with a $175 million price tag will be established, administered by the Department of Housing Preservation & Development, to help New Yorkers facing eviction or in shelters who are ineligible for existing voucher programs.
The Mamdani administration agreed to drop its appeal of a lawsuit regarding a housing voucher expansion previously vetoed by former Mayor Eric Adams.
Budget Breakdown
Department Allocation Department of Education $37.9 billion Department of Social Services $14.6 billion NYPD $6.59 billionPublic Statements
"A smart investment that saves taxpayers money by preventing homelessness before it happens."
— Speaker Julie Menin, on the new housing voucher program
Speaker Menin expressed strong disagreement with the decision to forgo NYPD headcount increase, citing concerns for public safety.
"A dangerous shell game with public safety."
— Council Minority Leader David Carr, criticizing the staffing decision
Mayor Mamdani claimed that Police Commissioner Jessica Tisch found alternative ways to meet staffing needs without additional officers.
Background
The executive budget initially included an increase in NYPD officer count from 33,861 to 35,370, but Mamdani reversed this decision after protests from activists and allies, including the Democratic Socialists of America.
The city faced a projected budget gap, originally estimated at $12 billion but later revised to $5.4 billion. Governor Kathy Hochul provided $4 billion in deferral measures and supported a pied-à-terre tax on luxury second homes, projected to raise $500 million annually (though Comptroller Mark Levine estimated a lower figure).