New York City adopts $126 billion budget, expands housing vouchers and Fair Fares

Mayor Zohran Mamdani and City Council Speaker Julie Menin reached a handshake agreement on a $125.8‑$126 billion budget just hours before the July 1 deadline. The plan adds $175 million for the CityFHEPS rental‑assistance program this fiscal year and $125 million for the following year, creating a new rental‑assistance initiative for tenants not covered by the existing voucher system.

The budget also expands the city’s “Fair Fares” half‑price transit program, increasing eligibility from 150 % to 200 % of the federal poverty level and covering roughly 1.3 million low‑income New Yorkers – an extra 340,000 people. Additional funding supports libraries, parks, mental‑health services and other social programs, while the mayor drops a lawsuit challenging the council’s mandated voucher expansion.

The agreement omits several campaign promises, notably a NYPD headcount increase and a full free‑bus plan. Fiscal officials note the budget relies on one‑time revenues and short‑term savings, leaving structural deficits and future budget gaps unaddressed.