State Senate Republicans Oppose Hochul’s $1.5B New York City Aid Deal

Rob Ortt and the Senate Republican Conference are urging Kathy Hochul to reconsider a proposed $1.5 billion state aid package for New York City.

In a letter to the governor, Senate Republicans called the funding plan a “bailout” and asked Hochul to reverse course on providing financial assistance to help close the city’s budget gap.

“This bailout is unfair to the rest of the state, and we strongly urge you not to move forward with it,” the letter states. “Hardworking families across New York should not be forced to subsidize fiscal mismanagement in New York City.”

The letter criticizes city officials for recent spending decisions, including funding for housing and healthcare for undocumented migrants, which Republicans say has cost the city nearly $10 billion in recent years, with an additional $1.2 billion projected next year.

According to the Governor’s Office, Hochul and New York City Mayor Zohran Mamdani reached an agreement for the state to provide $1.5 billion over two years to help address the city’s fiscal challenges.

The plan includes $510 million in recurring funding to cover costs that shifted from the state to the city under previous administrations. This includes nearly $300 million for youth programs, $150 million in restored sales tax revenue, and $60 million for public health initiatives. An additional $500 million would go toward shared priorities that have not yet been finalized.

Ortt criticized both the funding plan and the mayor’s broader budget proposal.

“Governor Hochul is getting ready to hand $1.5 billion to Mayor Mamdani, and it still won’t be enough,” Ortt said, arguing that the mayor’s budget increases spending, raises taxes, and allocates additional funds for undocumented migrants.

Senate Republicans say the agreement follows the release of Mamdani’s proposed $127 billion city budget, which they note is $10 billion higher than the previous year. They also point to $1.2 billion in proposed spending related to migrant services as a major concern.

State Senator Peter Oberacker also criticized the proposal.

“It’s unconscionable that instead of helping to lower energy costs, taxpayer dollars are being used to bail out failed policies,” Oberacker said. “The governor isn’t putting families first. She’s paying off political allies while the rest of us are tightening our belts.”