By 5 Towns Central Staff

NEW YORK, N.Y. (June 30, 2026) — New York City officials reached a last-minute agreement Tuesday on a $125.8 billion budget for fiscal year 2027, avoiding the July 1 deadline after weeks of negotiations over housing, public safety, and social services.

Mayor Zohran Mamdani and City Council Speaker Julie Menin announced the deal after resolving a dispute over rental assistance. Rather than expanding the existing CityFHEPS housing voucher program, the city will create a new $175 million rental assistance initiative for residents facing eviction or living in shelters who do not qualify for CityFHEPS. The Department of Housing Preservation and Development will oversee the program.

The administration also agreed to withdraw its appeal of litigation related to a previously approved housing voucher expansion. Total city spending on housing assistance is expected to reach approximately $1.7 billion.

The adopted budget closely mirrors the mayor’s executive proposal, allocating $37.9 billion for education, $14.6 billion for social services, and $6.59 billion for the New York City Police Department.

One notable decision was the exclusion of additional funding to increase NYPD staffing. The final budget does not include plans to hire more police officers, despite calls from some elected officials to expand the force. Mayor Mamdani said current staffing levels can meet the city’s public safety needs through more efficient deployment, while others have expressed concern that declining headcount could impact policing.

City officials also said projected budget shortfalls have been reduced with the help of temporary financial assistance from New York State. Additional revenue is expected from the newly enacted surcharge on certain luxury second homes, though estimates differ on how much the measure will generate each year.

The budget takes effect July 1, funding city operations for the coming fiscal year while setting the stage for continued debate over housing, public safety, and the city’s long-term financial outlook.

Mamdani promised the moon — free buses, free childcare, free EVERYTHING — and now? Turns out the math doesn't math! Who could've POSSIBLY seen this coming? Oh wait… everyone with a calculator. NY got SOLD a fantasy, and now the bill's due. Buckle up, Big Apple. You voted for it. pic.twitter.com/iQuXuzmKri

— Sean Hannity (@seanhannity) June 30, 2026