New York City Mayor Eric Adams presented the city’s balanced $109.4 billion Preliminary Budget for Fiscal Year 2025, showcasing a commitment to responsible fiscal management amid substantial challenges. The budget, shaped by the Adams administration’s strategic actions, stands out for its focus on addressing the needs of working-class New Yorkers while navigating a complex fiscal landscape.
Facing a $7.1 billion budget gap, the administration tackled multifaceted challenges, including the growing asylum seeker crisis, dwindling federal COVID-19 stimulus funds, unresolved labor contracts, and slowing tax revenue growth. Proactively, the Adams administration implemented a citywide hiring freeze and a Program to Eliminate the Gap (PEG) savings program early in the budget cycle. These measures effectively balanced the budget, stabilizing the city’s financial position without resorting to layoffs, tax hikes, or major disruptions to city services.
New York City, under Mayor Adams’ leadership, has shouldered the burden of the asylum seeker humanitarian crisis with resilience. The city independently managed the crisis, reducing city-funded spending by 20% over FY24 and FY25. Notably, the administration’s policies, including intensified case management and initiatives like the Asylum Application Help Center, led to significant progress. More than 60% of asylum seekers have moved forward in their journeys, and daily growth in the number of migrant households in the city’s care has slowed by nearly 60%.
Taking a stand against external challenges, Mayor Adams issued Executive Order 538 to safeguard asylum seekers and city employees. Legal actions were initiated against 17 bus companies transporting migrants without coordination, seeking to recover approximately $708 million. The city’s cost management efforts have reduced the overall costs associated with the migrant crisis from $12.25 billion to $10.6 billion from FY23 through FY25, generating substantial gap-closing savings.
The PEG implemented by Mayor Adams achieved almost $3.1 billion in savings over FY24 and FY25, with every non-exempt agency meeting its target. Remarkably, the total PEG savings since June 2023 amount to a record nearly $6.6 billion. This disciplined approach minimized service reductions, with 99% of Preliminary Budget PEG initiatives focusing on efficiencies or cost re-estimates, avoiding layoffs and tax increases.
The Preliminary Budget includes a near-record $8.2 billion in reserves, offering a robust financial foundation. Despite exceeding projected tax revenues in FY24 and FY25, the administration acknowledges the necessity of continued support from federal and state governments to address future fiscal challenges. Outyear gaps are projected to be $5.2 billion in FY26, $5.1 billion in FY27, and $6.0 billion in FY28.
Mayor Adams prioritized funding restorations to critical areas, including public safety, clean public spaces, and support for young people. The NYPD will see additional recruits, the FDNY will maintain firefighter positions, and DSNY’s efforts to keep streets clean will be supported. Educational initiatives, such as the restoration of $10 million to 170 DOE community schools and an $80 million investment in the Summer Rising program, underscore the commitment to youth development.
Adams emphasized the administration’s dedication to making New York City safer, more prosperous, and more livable. The achievements over the past two years, including job growth, crime reduction, and educational improvements, reflect the positive trajectory. While acknowledging ongoing challenges, Mayor Adams expressed optimism about the carefully planned and disciplined budget’s ability to sustain the city’s progress and maintain its status as a beacon of hope.
