Budget Watch: FY26 Agreement Reached

On Friday, June 27, 2025, Mayor Eric Adams, Council Speaker Adrienne Adams, Finance Chair Justin Brannan, and other city leaders announced an agreement on a $115.9 billion budget for Fiscal Year (FY) 2026. 

New York City’s FY26 budget includes major investments in early childhood education, CUNY, mental health, and cultural institutions—many of which directly respond to priorities outlined in a recent Crain’s op-ed by NYCETC CEO Gregory J Morris and Council Majority Leader Amanda Farías. The op-ed made the case that “workforce development is the foundation of an inclusive economy,” urging the City to embed workforce equity into housing, education, care infrastructure, and public hiring. So—how did the final budget measure up? Below, we break down the wins, the gaps, and what it all means for New Yorkers looking to work, earn, and thrive.

The FY26 budget delivers major wins on early care and education—restoring $112 million for 3-K and Pre-K, adding $25 million for full-day/year seats in high-need neighborhoods, and allocating $10 million for infant and toddler care. These actions respond directly to the op-ed’s call to treat early childhood as a cornerstone of economic mobility: “Workforce development begins in the classroom,” wrote Morris and Council Majority Leader Farías. In press remarks following the budget’s passage, Farías celebrated this achievement, stating, “This $115.9B budget serves New Yorkers with seven-day library access and early childhood education to restored city services and CUNY support—it meets New Yorkers’ needs head-on.”

The op-ed emphasized that “CUNY remains our city’s most powerful engine of economic mobility,” and called for expanded on-ramps to postsecondary success. The FY26 budget answered with more than $135 million for CUNY institutions and initiatives—including $109.5 million in base operating support, and targeted funds for ACE ($10.1M), Reconnect ($7.8M), and ASAP for All ($5.5M). In the op-ed, Morris and Farías argued that investments in CUNY “strengthen the link between academic credentials and employment in growing industries.” Council Member Eric Dinowitz, Chair of the Higher Education Committee, echoed this in the Council’s press release: “This is more than just a historic budget—it is a bold commitment to ensuring that every New Yorker has access to opportunity, dignity, and the resources they need to thrive.”

The FY26 budget makes clear progress on care-sector priorities laid out in the op-ed, which pointed to a projected 300,000-job expansion in the health sector by 2030. The Council responded with funding for behavioral health services—including $11 million for Intensive Mobile Treatment teams and $4.5 million to expand the peer workforce—and maternal health supports like $1.5 million for Nurse-Family Partnership. Morris and Farías wrote: “Investing in care infrastructure addresses urgent community needs, creating opportunities for workers to advance into higher-wage roles in social services, ambulatory care, and behavioral health.” 

The budget reflects the op-ed’s call to restore and expand investments in cultural institutions and community anchors that double as employment hubs. It includes $75 million for arts and culture (including $45M baselined), $30.7 million for libraries, and $6.1 million for additional parks workers. In the op-ed, Morris and Farías emphasized that “Parks, libraries, and cultural institutions are job hubs and engines of neighborhood vitality.” Council Member Carlina Rivera, Chair of the Cultural Affairs Committee, echoed this in the budget announcement: “We fought for a budget that uplifts working families and delivers meaningful support to all New Yorkers.”

While the budget includes $4 billion in capital and $1 billion in expense funding for housing under the “City for All” plan, it stops short of investing in the workforce needed to deliver on those commitments. The op-ed warned: “If we don’t embed workforce equity into major capital projects from their onset, we risk repeating the mistakes of the past.” The FY26 budget makes meaningful progress by expanding housing construction supports and updating key funding mechanisms—laying a strong foundation for long-term impact. The next step is clear: pairing these investments with targeted training, hiring, and retention strategies to ensure New Yorkers are prepared to build, maintain, and manage the housing our city needs. With the capital commitments in place, the City now has a powerful opportunity to activate workforce pipelines that turn development into inclusive economic opportunity.

This remains one of the most under-addressed areas. In the Crain’s op-ed, Morris and Farías highlighted “nearly 20,000 vacant city jobs” and the mounting pressures on the city contracting as a critical equity and service-delivery issue. Yet the adopted budget offers only limited support, including $7.4 million for MOCS PASSport system maintenance and $1.5 million for help desk staffing. While this year’s budget did not include major initiatives to build city hiring pipeline, there’s still time to course-correct. As the op-ed emphasized, “If we want our City to function and grow equitably, we must fund the people who power it.” With months remaining in the fiscal year, City leaders have a critical opportunity to prioritize workforce investments that strengthen public systems, support service providers, and ensure New Yorkers aren’t left waiting for the services they need.