New York will send more than $1 billion in financial assistance to local governments outside New York City under the newly adopted state budget, including a major increase in temporary aid meant to help municipalities manage rising costs, budget gaps and pressure on local taxpayers.
Gov. Kathy Hochul announced the funding Thursday as part of the fiscal year 2027 budget, saying the state is increasing support for cities, towns and villages at a time when local governments are facing higher costs tied to inflation, tariffs and uncertainty in federal policy.
The budget triples Temporary Municipal Assistance from $50 million to $150 million, with the additional money distributed proportionally based on existing Aid and Incentives for Municipalities funding. The aid is available to cities, towns and villages outside New York City.
Buffalo, Rochester, Syracuse and Yonkers will each receive the maximum $15 million through that temporary aid stream.
The budget also includes recurring support for several major cities facing fiscal strain. Buffalo will receive $70 million in total aid, including $55 million in direct support and $15 million in temporary municipal assistance. Rochester and Syracuse will each receive $35 million, while Yonkers will receive $55 million.
Albany will receive $44.4 million, including direct and miscellaneous aid, while Mount Vernon will receive $12.5 million.
State officials said the funding is intended to help municipalities close budget gaps, protect essential services and limit the need for local tax increases. Several city leaders said the aid will help stabilize local budgets while maintaining public safety, schools and basic government operations.
Rochester Mayor Malik Evans said the additional funding comes as municipalities confront volatile economic conditions and growing financial pressure. Syracuse Mayor Sharon Owens said the increase will help the city balance its budget and improve fiscal sustainability.
Hochul’s office said state support for counties, cities, towns and villages outside New York City has increased by $4 billion, or 60%, since she took office. That includes absorbed Medicaid costs, support for human services, transportation aid and public safety assistance.
The new municipal aid package comes as communities across upstate and suburban New York continue warning that service costs are rising faster than local revenue, especially in cities with large amounts of tax-exempt property.
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