– During the City Council’s Executive Budget hearing by its Committee on Children and Youth and the Committee on Finance, the Council identified missing or insufficient funding in the Mayor’s Fiscal Year (FY) 2026 Executive Budget for services provided by the Administration for Children’s Services (ACS) and Department of Youth and Community Development (DYCD) that support children, youth, and families.
The FY 2026 Executive Budget includes $2.9 billion for ACS, up $83.4 million from the Preliminary Budget and $122.6 million from the FY 2025 adopted budget. It includes $25 million to continue Promise NYC at its current level in FY 2026. While this critical investment was advocated for by the Council, other key programs like foster care and childcare vouchers remain without funding. In its Preliminary Budget Response, the Council called for the Administration to fully fund foster care payments to families at $134.1 million and the Executive Budget fails to invest any of this funding for Fiscal Year 2026. Currently, ACS faces a funding deficit for its administration of the Child Care Assistance Program (CCAP) that could lead to 4,000-7,000 families a month losing access to care. The recently passed state budget allocated $350 million towards this program and requires New York City to match it with at least $328 million in funds. No funding for this purpose was included in the Executive Budget.
The Mayor’s Executive Budget includes $1.3 billion for DYCD for FY 2026, which is an addition of $77.8 million from the Preliminary Budget and $88.4 million less than the adopted FY 2025 budget. It includes a baseline funding increase of $18.9 million for the Summer Youth Employment Program and $10 million in one-time funding to restore adult literacy programs – both have been Council priorities, with this latter amount funded entirely by the Council in the FY 2025 budget. The Executive Budget includes an additional $21.3 million in FY 2026 for after-school programs, as well as $297.4 million in FY 2027, and $331.4 million beginning in FY 2028. While these investments purport to expand the Comprehensive After School System of New York City (COMPASS) seats, with 5,000 added in FY 2026 and a gradual increase to 20,000 in future years, they do not address the currently inadequate rate that underfunds providers to administer the program. This per-student rate has forced many providers to reduce services, including lowering headcount, and decrease salaries that threatens staff hiring. Additionally, housing and services for LGBTQIA+ youth, and contract extensions and support staff for runaway and homeless youth programs were omitted from the Executive Budget.
The following programs were outlined in the Council’s Preliminary Budget Response, but were left out of the Mayor’s FY 2026 Executive Budget:
The Comprehensive After-School System of New York City (COMPASS) for school-aged children is comprised of several different models, the largest being COMPASS Elementary and Schools Out NYC (SONYC) Middle School programs. The existing contracts for COMPASS and SONYC have not been updated since 2011 and 2015 and do not reflect the growing needs of program providers, particularly their increased costs. In January 2025, the Department of Youth and Community Development’s providers received notification that their contracts would be extended through 2028. But this extension did not reflect any increase in the current per-student rate: $2,800 – $3,200 for COMPASS and $3,200 for SONYC.
To ensure seats are fully funded, the Council proposed that the Administration provide the necessary funding to increase the current COMPASS contract in FY2026 to a rate of $4,900 for COMPASS (Elementary) and $4,150 for SONYC (Middle School). This rate increase would cost an additional $154.3 million in FY 2026 Funding higher base rates for after-school programs will provide financial stability for providers and allow for the appropriate continuation of the City’s after-school system. However, the Executive Budget did not address the deficit in this rate, while claiming to increase the overall number of seats and leaving a significant gap.
The recent contract extension provided by DYCD to runaway and homeless youth (RHY) service providers does not reflect any increase in the cost per bed, set at approximately $47,000 – $55,000. This falls short of covering the true cost of running the programs and does not address providers’ deficits to operation the program. With the number of youth requiring shelter continuing to increase, the Council proposed that the Administration initiate a Request for Proposals (RFP) that would allow for changes to the existing contracts and provide a baselined addition of $16.6 million for this program starting in FY 2026, in order to increase the per bed rate for all current RHY contracts within the Department to $70,000. This additional funding would address the increased operational costs of running the programs, yet it was not included in the Mayor’s Executive Budget.
While the Preliminary Budget included $6 million for 100 new beds for the RHY program, a large portion of the cohort of RHY identify as LGBTQIA+ and often have a distinct set of needs. In order to meet the specific needs of LGBTQIA+ youth, the Council proposed an addition of $10 million in baseline funding, beginning in FY2026, for moving LGBTQIA+ youth and young adults from the streets to permanent housing and supporting non-profits that specialize in LGBTQIA+ youth housing and services, including operators of LGBTQIA+ youth shelters. The funding would also be used to enhance LGBTQIA+ youth respite services and to hire more housing navigators and peer navigators.
The Council has pushed for the Administration to expand shelter services and capacity for young people experiencing homelessness in the Department of Youth and Community Development’s youth shelter system. There remains a significant need for age-appropriate support strategies to prevent youth homelessness, and the Council proposed the Administration include $1.6 million in FY 2026 for RHY Peer Navigators at City-funded Drop-in-Centers. Peer Navigators provide support to some of the most vulnerable runaway and homeless youth and young adults in the shelter system, build connections with young people that assist in the assessment of their needs and supporting their advocacy and problem solving. The peer mentorship and its associated services, including financial tools and support, help youth get on the path to more stable lives.
Housing Navigators assist those entering RHY drop-in-centers to find permanent safe housing options. In FY 2025, $1.6 million was added to fund 16 Housing Navigators in the Department of Youth and Community Development. These funds were not baselined past the current fiscal year. In recent years, the City’s homeless youth shelter system’s capacity has been severely strained. Housing Navigators are a necessary part of the RHY shelter system, providing relief for the strained system by offering youth the means to discontinue their reliance on the system. There is a critical need to restore funding for Housing Navigators. The Council proposes the Administration restore and baseline $1.6 million for 16 Housing Navigator positions to assist and connect the homeless youth of New York City to safe housing.
In successive financial plans, mayoral administrations have not adequately budgeted for the true spending costs of vital programs that serve New Yorkers. Instead, the Administration will allocate a minimum amount at the start of the Fiscal Year and add funding throughout the year for major programs. In the Preliminary Budget Response, the Council urged the Administration to allocate $134.1 million to fully fund payments to foster care families and end continued underbudgeting.
In the past few fiscal years, the Council has secured funding and reforms of the early childhood education system, including extended day and extended year seats in the 3-K system and re-established outreach and marketing efforts, and supported access to childcare for all children. The City provides Pre-K and 3-K throughout the city in either schools or Family Child Care services providers. For infants and toddlers (ages 0-2), the City operates a childcare voucher system through the State Child Care Assistance Program. The Administration has made significant strides in growing this service, which the Council has supported. The Council has also been instrumental in the creation of Promise NYC to fund greater access to early childhood education programs for New York City families.
State and federal funding guidelines only exclude families from accessing childcare vouchers because they are just above the income eligibility parameters. The Council believes that the City needs to take the first step in a multi-pronged approach for the eventual implementation of a universal, needs blind, low-cost, early childhood education system for children ages 0-5, providing a seat for every family that wants one. For the first step, the Council proposed increasing the income eligibility for infant and toddler childcare vouchers to 100 percent of SMI.
The Council has also proposed re-envisioning Promise NYC to focus more intentionally on infants and toddlers, removing income and documentation requirements, taking its first steps in providing a universal childcare system that covers all families. The Executive Plan includes $25.0 million in City funding in Fiscal 2026 only to continue approximately 1,000 slots in the Promise NYC programs. Since its inception in Fiscal 2023, funding for Promise NYC has been added on a year-to-year basis and has not been baselined. The Council called for funding for Promise NYC to be baselined in the Fiscal 2026 Preliminary Budget Response.
The Council’s funding initiatives address gaps in children and youth services that offer vital programs and support to young people across the city. The approximately $15.7 million for various city-wide youth services support programs like the Citywide Young Adult Entrepreneurship Program Initiative, YouthBuild, a comprehensive education, training, service and leadership development program for young adults who have left high school without a diploma, and Sports Training and Role-models for Success Initiative (STARS), which provides afterschool programming that promotes physical activity, healthy living, and wellness for elementary, middle, and high school girls.
Council funding also closes gaps in community development programs, with approximately $42.7 million for various initiatives that support increased language access, AAPI communities, LGBTQIA+ and trans equity programs, and nonprofit organizations serving communities of color. It is critical that this funding, left out of the Mayor’s Executive Budget, is included in the final budget through a continued full commitment towards Council discretionary funding.
“Every day, I hear from parents who are struggling to find affordable childcare, from youth who need safe and engaging spaces after school, and from community organizations doing their best with limited resources,” said . “As we head into this executive budget hearing, I’m calling for real investments in childcare vouchers, the CMS system, and the expansion of after-school programs through ONS. These aren’t just line items, they’re vital supports that help families breathe a little easier and give our young people a chance to thrive. If we’re serious about equity, we need a budget that centers the real needs of our communities.”
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