NY Gets $1.5B for Affordable & Supportive Housing | Hochul & Mamdani Announce Funding

Hochul and Mamdani Announce $1.5 Billion State Funding Boost for New York City

February 16, 2026 – New York Governor Kathy Hochul is providing New York City with an additional $1.5 billion in state funding, just one day before Mayor Zohran Mamdani is scheduled to present his first city budget. The announcement comes less than a week after Mayor Mamdani appealed to state legislators in Albany for increased financial support for the city.

Governor Hochul emphasized the importance of a strong New York City for the overall health of New York State, stating, “A strong New York City means a stronger New York State. This investment protects services and puts the city on stable financial footing.” She further expressed pride in partnering with Mayor Mamdani to deliver for working families.

The $1.5 billion will be distributed over two fiscal years. Budget sources indicate that $1 billion will be allocated for the upcoming fiscal year, with an additional $510 million earmarked for the 2027-2028 fiscal year. A significant portion of the funding, $510 million total, is designated as recurring support.

This infusion of state funds arrives after Mayor Mamdani’s recent attempt to secure approval for new taxes on wealthy individuals and large corporations during “Tin Cup Day” in Albany. That proposal, however, reportedly met with little support from state lawmakers.

The recurring funding component will address costs that were previously shifted from the state to New York City under prior administrations. Specifically, $300 million will be dedicated to youth programming, $150 million will restore sales tax revenue previously retained by the state, and $60 million will bolster public health services.

An additional $500 million will be allocated towards shared priorities, the specifics of which will be determined through future discussions between state and city officials.

The Governor’s office also highlighted the broader context of the funding within the FY26 Enacted Budget, which includes over $1.5 billion in new state capital to increase housing supply. This includes $100 million for pro-housing communities to fund critical infrastructure projects, $100 million to promote mixed-income housing development, $50 million for the first year of the Housing Access Voucher Program to address homelessness, and $50 million for building more affordable starter homes.

Governor Hochul stated, “New Yorkers deserve a fair chance at achieving the American dream, whether It’s buying their first home or renting their first apartment, and this bold plan does just that.” She added that the FY 2026 Enacted Budget secured over $500 million in capital for housing to uplift local economies and improve access to safe and affordable homes.

The state funding is intended to help New York City address a significant budget gap, and stabilize the city’s finances as Mayor Mamdani prepares to unveil his first budget plan.