Mayor Eric Adams’ office told amNewYork Tuesday morning that the city would provide over $5 billion in advance payments to city-contracted nonprofit organizations for Fiscal Year 2026 in a move set to rehabilitate the relationship between the city and its nonprofit partners.
This allotment is an increase from the $2.6 billion allocated during FY 2025 and aims to deliver vital financial support quickly to organizations dedicated to serving some of the city’s most vulnerable populations.
“Every single day, our nonprofit providers show up for New Yorkers — feeding families, providing emergency housing, caring for our kids and our elders, and doing so much more to move our city forward,” Mayor Adams said. “They are the backbone of our city’s social safety net, serving the most vulnerable populations, but too often, they’ve had to do that work while waiting for payments. Today, we are giving these organizations the highest advance payments in city history, ensuring those who care for our city can count on their city to care for them.”
The funding comes amid ongoing efforts to strengthen the financial stability of nonprofit providers, which are essential in areas such as youth programming, mental health services, and emergency shelters.
Each year, nonprofit organizations are eligible to receive up to 25 percent of their contract value as an advance. Last fiscal year, the city issued $2.8 billion in such advances.
“Nonprofit providers are not vendors — they are vital partners,” said Michael Sedillo, executive director of the Mayor’s Office of Nonprofit Services. “These organizations maintain the safety net that millions of New Yorkers count on. The Adams administration will continue to do everything possible to ensure that providers are paid on time, treated with respect, and empowered to serve.”
The city is also implementing an updated version of ContractStat, a newly designed performance management system with data-driven accountability and improved communication among nonprofit contracts, to help streamline payment processes and prevent cash flow challenges.
Additionally, the Mayor’s Office of Contract Services completed its Spring Contract Backlog Initiative, which unlocked over $700 million in retroactive contracts for nonprofit organizations.
“As we turn the page on past challenges, our focus remains on ensuring that nonprofit organizations have the resources they need to continue their critical work without interruption,” Sedillo said. “This initiative signifies our ongoing commitment to a fair and prosperous partnership between the city and those who provide essential services to our communities.”
The Adams’ administration was previously criticized for what nonprofit leaders considered negligence and overall dismissal after nonprofits experienced delayed payments last year, as amNewYork previously reported. Leaders called for improved communication, updated payments and city support.
Adams responded by accelerating efforts by appointing Sedillo as executive director in January and implementing initiatives to speed up payments. Improvements included introducing the Payment Backlog Initiative and providing agencies with additional training, office hours, and best practice guidance to help prevent future backlogs.
City leaders anticipate that this new investment will enhance services across the board, directly benefiting New York’s most vulnerable residents.
