Governor Hochul Announces Additional $150 Million in Financial Assistance for Municipalities Outside New York City

Governor Kathy Hochul today announced New York State will allocate an additional $150 million in financial assistance for municipalities outside New York City to assist in relieving immediate fiscal stress. This additional funding includes a $100 million increase in Temporary Municipal Assistance 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 an additional $10 million. The Governor also set aside an additional $30 million for the City of Buffalo, bringing the total new investment for the City of Buffalo to $40 million. Additionally, the Governor is also including $20 million for fiscally distressed local governments. These new investments build upon the previous Executive Budget proposals where the Governor included an additional $50 million in Temporary Municipal Assistance to help local governments minimize the burden on taxpayers.

“Having spent years in local government, I understand the unique challenges our local leaders are experiencing, which is why my Administration has worked closely with municipalities across the state to increase financial support from the State,” Governor Hochul said. “We want all of New York's municipalities to succeed, and this funding is crucial to putting all of our cities, towns and villages on stronger financial footing and allowing them to keep their residents safe and continue providing the vital services they rely on.”

Temporary Municipal Assistance

The Governor’s FY 2027 Executive Budget extends for one year the $50 million temporary program for cities, towns and villages. This program, which was initially authorized in FY 2025 for two years, provides general purpose aid for local governments. The Governor is now adding $100 million in additional Temporary Municipal Assistance to her Executive Budget proposal, tripling the total to $150 million for FY 2027. 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.

Regional breakdowns of total Temporary Municipal Assistance for cities, towns and villages included in Governor Hochul’s FY 2027 Executive Budget proposal include:

• Capital Region: $17.2 million
• Central New York: $20.4 million
• Finger Lakes: $18.1 million
• Long Island: $6.3 million
• Mid-Hudson: $31.2 million
• Mohawk Valley: $13.0 million
• North Country: $4.0 million
• Southern Tier: $8.2 million
• Western New York: $31.7 million

Updated total TMA funding for FY 2027 includes:

• City of Buffalo: $15 million
• City of Rochester: $15 million
• City of Syracuse: $15 million
• City of Yonkers: $15 million
• City of Niagara Falls: $6.2 million
• City of Utica: $5.6 million
• City of Albany: $4.4 million
• City of Troy: $4.3 million
• City of Schenectady: $3.9 million
• City of Binghamton: $3.2 million
• City of Rome: $3.2 million
• City of Mount Vernon: $2.5 million
• City of New Rochelle: $2.2 million
• City of Lackawanna: $2.2 million
• City of White Plains: $1.9 million
• City of Auburn: $1.7 million
• City of Newburgh: $1.6 million
• City of Watertown: $1.6 million
• City of Jamestown: $1.6 million
• City of Elmira: $1.6 million
• City of North Tonawanda: $1.5 million
• City of Poughkeepsie: $1.5 million
• City of Long Beach: $1.1 million

The rest of the updated TMA totals for all New York municipalities can be found here: https://www.budget.ny.gov/pubs/archive/fy27/ex/local/aim/fy27tma-ex30.pdf

$30 Million Additional Aid for the City of Buffalo

The $30 million for Buffalo is pursuant to a plan where this funding will be pledged to close the city’s budget gap while minimizing any additional burdens on taxpayers and maintaining public safety.

$20 Million for Financially Distressed Municipalities

An additional $20 million in funding is for severely financially distressed cities, towns and villages. To be eligible for this funding, municipalities must opt in to receive a comprehensive review through the Financial Restructuring Board for Local Governments.

City of Buffalo Mayor Sean Ryan said, “My administration is working on a responsible, multi-year plan to fix the structural imbalance Buffalo has operated under for years. But first, we have to close the gap in the budget we inherited. This support from New York State allows us to balance this year’s books without additional borrowing and reduces the pressure on Buffalo taxpayers in the years ahead. I’m grateful to Governor Hochul for recognizing Buffalo’s urgent need and providing the resources that will stabilize our finances immediately as we take on the long-term work to put the City on solid footing.”

City of Yonkers Mayor Mike Spano said, “I want to thank Governor Hochul for heeding the Big 5’s collective calls for additional municipal aid in this year’s state budget. This critical investment is an acknowledgment of the partnership between New York State and local governments to strengthen public safety, improve infrastructure, and protect essential services for our residents without placing additional burden on taxpayers. We are grateful for her partnership and leadership.”

City of Rochester Mayor Malik D. Evans said, “I want to thank Governor Kathy Hochul for including this additional funding for Rochester and other cities in her budget proposal, and commend her for recognizing the need for increased State investment in New York’s municipalities. Working together with Governor Hochul, we are building tremendous momentum and transforming our physical landscape to generate new revenue, create jobs, and grow our population. By providing Rochester with operational funds that can help our most vulnerable residents, she is helping ensure we all can maintain that momentum.”

City of Syracuse Mayor Sharon Owens said, “I want to thank Governor Hochul for her leadership and commitment to supporting municipalities across New York State. The Governor’s overall increase of $100 million to Temporary Municipal Assistance will provide critical support to Syracuse and other communities that rely on the partnership with New York State. This addition of $10 Million to our previous allocation of $5 Million will help strengthen the City’s vital services that residents depend on and allow us to sustain essential programs and preserve the quality of life our residents deserve. I also want to recognize my fellow mayors across New York State who will benefit from this important investment. Together, we share a common goal of building stronger, more resilient cities for the people we serve.”

City of Albany Mayor Dorcey Applyrs said, “I am deeply grateful to Governor Hochul for her continued investment in Albany and for recognizing the important role municipalities play across New York State. This additional investment of $4.4 million is truly meaningful for our city. Strengthening Temporary Municipal Assistance allows Albany to sustain essential services, support public safety, and continue delivering for our residents. We have been clear about the importance of increased financial assistance to our city's future, and the Governor has delivered. We have a strong partner in Governor Hochul as she continues to recognize the importance of investing in the Capital City. Her partnership makes a real difference for our community.”

New York Conference of Mayors Executive Director Barbara Van Epps said, “NYCOM thanks Governor Hochul for recognizing that New York’s strength begins in its cities, villages, and towns, and for reaffirming her commitment to investing in local governments. Our State is only as strong as the communities that power it, and this increased funding reflects her understanding that a strong state-local partnership is essential to delivering the services, infrastructure and quality of life New Yorkers need and expect. This additional aid will deliver meaningful relief not only to municipalities across New York grappling with mounting fiscal pressures, but also to taxpayers striving to balance household budgets amid the rising cost of living. We deeply appreciate the Governor’s recognition of the vital role local governments play in moving New York forward, and we urge the State Legislature to preserve this additional investment in the adopted state budget — because when our cities and villages rise, all of New York rises with them.”

New York State Association of Towns Executive Director Christopher Koetzle said, “Towns across New York thank Governor Hochul and commend her proposal to provide an additional $100 million in unrestricted state aid through the Temporary Municipal Assistance Program. This funding delivers critical fiscal flexibility, allowing towns to sustain essential public services and reduce reliance on real property taxes. At NYAOT’s conference on Tuesday, the Governor reaffirmed that, as a former town official, she has not forgotten her local government roots. This proposal demonstrates a clear commitment to supporting municipalities with meaningful, direct assistance.”

Village of Brightwaters Mayor and President of the Suffolk County Village Officials Association John Valdini said, “This additional investment in temporary municipal assistance is a meaningful step toward supporting local governments as we continue to navigate rising costs. On behalf of the Suffolk County Village Officials Association, I thank the Governor for this added support, which will provide much needed relief to municipalities across our region.”

Village of Sea Cliff Mayor and President of the Nassau County Village Officials Association Elena Villafane said, “The Nassau County Village Officials Association is grateful for Governor Hochul’s commitment to increase support to local governments across New York State. The additional $150 million in assistance, including the increase in Temporary Municipal Assistance, will help many villages here in Nassau County. Villages across the County face increased fiscal pressures as they seek to provide essential services in the face of ever-increasing costs and state and federal mandates. This funding represents an important initial step in strengthening municipal stability and supporting our communities.”

City of New Rochelle Mayor Yadira Ramos- Herbert said, “We are deeply grateful to Governor Hochul for this $2.2 million investment in the City of New Rochelle. This funding strengthens our financial foundation as we advance our strategic priorities and continue delivering essential services to our residents. The State’s partnership helps ensure we can maintain stability today while building a more resilient and prosperous future for generations to come.”

City of North Tonawanda Mayor Austin Tylec said, “We are grateful to Governor Hochul for recognizing the financial challenges facing local governments and strengthening Temporary Municipal Assistance. Her continued partnership provides meaningful support to North Tonawanda and helps us maintain stability while planning confidently for the future.”

City of Niagara Falls Mayor Robert Restaino said, “On behalf of the residents of the City of Niagara Falls, we are extremely grateful to Governor Hochul for extending the temporary assistance program in which the City will receive $6.2 million in funding in addition to funding from the aid to municipalities program. This increase in state support will go a long way in our efforts to enhance services to the taxpayers and other initiatives to beautify and develop city neighborhoods.”

City of Lackawanna Mayor Annette Iafallo said, “We're grateful to Governor Hochul for allocating an additional $2.2 million in Temporary Municipal Assistance funding to the City of Lackawanna, which will provide our city with greatly-needed resources for continuing the efficient and effective delivery of services within our community.”

City of Mount Vernon Mayor Shawyn Patterson Howard said, “We are deeply grateful to Governor Kathy Hochul for her continued commitment to supporting municipalities across New York State. This $2.5 million investment in the City of Mount Vernon comes at a critical time and will help relieve immediate fiscal pressures while allowing us to continue delivering essential services to our residents. Governor Hochul understands that strong cities are the backbone of a strong state, and this additional assistance provides meaningful relief that will strengthen our financial stability and support our ongoing efforts to build a more resilient Mount Vernon.”

City of Schenectady Mayor Gary McCarthy said, “This infusion of state aid is greatly appreciated as we support day-to-day maintenance and operations of the Electric City. It will help us meet costs and continue to improve the quality of life projects and programs. We are grateful for Governor Hochul's partnership and continued investment in the City of Schenectady and its residents.”

City of Troy Mayor Carmella R. Mantello said, “Governor Kathy Hochul’s announcement of an additional $4.3 million in TMA funding is an important investment in the future of Troy. These resources will help us accelerate transformative neighborhood revitalization projects like One Monument Square, Frear Park, and other critical improvements across our city. This funding strengthens our ability to deliver real results for residents and continue building a safer, cleaner, more vibrant Troy. We sincerely appreciate Governor Hochul’s continued investment in the Collar City.”

City of Jamestown Mayor Kimberly Ecklund said, “The increased release of Temporary Municipal Assistance provides much-needed support to municipalities like Jamestown facing persistent cost growth across every operational area. From inflation and labor obligations to infrastructure and service demands, the financial pressures on local governments continue to intensify. This additional funding helps sustain essential services, uphold fiscal discipline, and ease pressure on taxpayers while keeping our community stable and secure.”

City of Rome Mayor Jeffery Lanigan said, “We are so grateful to Governor Hochul for this $3.2 million investment in the City of Rome. This funding strengthens our financial foundation helping create a more resilient and prosperous future for generations to come.”

City of Utica Mayor Michael Galime said, “Governor Hochul, thank you. This funding is not just money, this will bolster the structural funding our cities rely on to provide the most essential services every citizen needs. Thank you for the utmost thought in how you have deployed these discretionary funds.”