New York Governor Kathy Hochul speaks with New York Mayor Zohran Mamdani after a press conference with NYPD Commissioner Jessica Tisch, Tuesday, Jan. 6, 2026, in New York. (AP Photo/Yuki Iwamura)

More big bucks are heading to Albany.

In a news release issued Tuesday, state Gov. Kathy Hochul and Mayor Zohran Kwame Mamdani announced new state support and actions to help New York City close its budget deficit ahead of the release of Mamdani’s Fiscal Year 2027 Executive Budget. Hochul, in partnership with the state legislature, has secured an additional $4 billion in gap-closing support, bringing the total new state assistance to nearly $8 billion over two years.

With this latest agreement, the Mamdani Administration will officially close the more than $12 billion deficit it inherited from the previous administration, stabilizing the City’s finances while advancing investments that make New York more affordable for working people. These new investments build on the $1.5 billion in assistance announced in the Governor’s 30-day amendments in February and funding for universal childcare.

“From day one, I have been committed to ensuring New York City succeeds, because a strong and stable City means an even stronger New York State,” Governor Hochul said. “Today, we are fulfilling the promise to make free universal childcare a reality, making significant investments in education, public safety and infrastructure while providing the city the resources they need to continue to fund critical services for New Yorkers. This is what a results-driven, responsible partnership looks like and I’m proud to work with Mayor Mamdani to deliver for working New Yorkers.

“For years, the relationship between City Hall and Albany has been defined by dysfunction and infighting,” Mayor Mamdani said. “Governor Hochul and I, however, share a belief that government works best when we work together on behalf of the people we serve. We have partnered through every step of this process to protect the fiscal health of our city. I am thankful for her collaboration and deep commitment to securing a future for our city that working people can afford.”

This budget agreement reflects a renewed partnership between City Hall and Albany rooted in a shared commitment to protect public goods and deliver the resources that keep libraries open, schools funded and streets safe and clean.