Governor Kathy Hochul today announced New York State is allocating more than $1 billion total in financial assistance for municipalities outside New York City to assist in relieving immediate fiscal stress. As part of the FY 2027 Enacted Budget, this additional funding includes a $100 million increase in Temporary Municipal Assistance (TMA) which will triple the amount of funding that all cities, towns and villages outside New York City receive from this aid stream. The funding is distributed proportionally to existing Aid and Incentives for Municipalities (AIM) funding — with the cities of Buffalo, Rochester, Syracuse and Yonkers each receiving the maximum amount of $15 million each. In addition to the TMA, the Governor and Legislature are committing $165 million total in recurring funding for the cities of Buffalo, Rochester, Syracuse, Yonkers, Albany and Mt. Vernon.
“As bad federal policies like tariffs drive inflation and continue to raise costs for local governments, we are providing additional aid to localities to help hold the line on local taxes,” Governor Hochul said. “Strong local communities mean an even stronger New York, and these investments will go a long way to ensure that our local governments can continue to deliver for the communities they serve.”
State Senator Shelley Mayer said, “I am pleased that the final adopted FY2027 State Budget includes critical temporary municipal aid for cities outside of New York City across our state, including the three cities I am proud to represent — Yonkers, White Plains, and New Rochelle. This funding will provide relief to local budgets and for Yonkers, relief to the Yonkers Public Schools. These additional funds will help alleviate the burden on property taxpayers while assuring our local governments continue to provide essential services. It is more important than ever that New York continues to stand up for our communities. I thank Governor Kathy Hochul and Majority Leader Andrea Stewart-Cousins for their leadership and for ensuring these cities receive the support they need.”
State Senator Nathalia Fernandez said, “Governor Hochul’s investment in New Rochelle and cities across the state reflects the kind of proactive stewardship required to help local governments meet their obligations without shifting the burden onto local taxpayers. With this direct support, our communities can continue delivering the essential services residents expect and deserve.”
Assemblymember J. Gary Pretlow said, “This investment is a significant win for our local communities and a testament to the State’s commitment to supporting municipalities facing growing financial pressures. With the City of Yonkers receiving $15 million and the City of Mount Vernon receiving $2.5 million, these funds will help strengthen essential services, support local operations, and ease the burden on taxpayers. I thank Governor Hochul for recognizing the needs of our cities and continuing to invest in the future and stability of communities across New York State.”
City of Yonkers Mayor Mike Spano said, “This was an extraordinary year. We rolled up our sleeves, went to Albany and asked for more funding and our Governor heard our pleas. Thank you to Governor Kathy Hochul, Majority Leader Andrea Stewart-Cousins and our state delegation for making Yonkers a priority. This investment makes our job a little easier and our schools a lot stronger.”
City of Mount Vernon Mayor Shawyn Patterson Howard said, “Mount Vernon is grateful to Governor Hochul for recognizing the fiscal challenges facing local governments and providing meaningful support through this additional funding. These temporary resources will help the City address outstanding obligations, cover critical one-time costs and strengthen our financial footing so we can continue delivering the services our residents rely on while protecting taxpayers.”
Temporary Municipal Assistance
The FY 2027 Enacted Budget secures $100 million in additional Temporary Municipal Assistance, tripling the total to $150 million. Initially authorized in FY25 for two years, the program provides general purpose aid for local governments. This funding builds on the State’s Aid and Incentives for Municipalities (AIM) program which provides state aid to cities, towns and villages outside of New York City.
Assistance to Cities
The FY 2027 Enacted Budget provides additional support for closing budget gaps while minimizing the taxpayer burden and maintaining public safety for the following cities:
- Buffalo – $70 million ($55 million + $15 million TMA)
- Rochester – $35 million ($20 million + $15 million TMA)
- Syracuse – $35 million ($20 million + $15 million TMA)
- Yonkers – $55 million ($40 million + $15 million TMA)
- Albany – $44.4 million ($20 million + $20 million misc. aid + $4.4 million TMA)
- Mt. Vernon – $12.5 million ($10 million + $2.5 million TMA).
Increase in Support
State support for counties, cities, towns and villages outside of New York City has increased by $4 billion (60 percent) under Governor Hochul. This includes $1.6 billion in absorbed Medicaid costs, $1.3 billion in support for human services such as child care as well as other increases like transportation aid and public safety assistance.