New York City Mayor Eric Adams has announced an unprecedented commitment of more than $5 billion in advance payments to city-contracted nonprofit providers for Fiscal Year 2026.

This bold financial measure marks the highest upfront allocation in city history, aimed at ensuring stability for organizations that deliver vital services to vulnerable New Yorkers.

“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,” said Mayor Adams. “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. Since taking office, our administration has worked to pay providers on time, and today, we are giving these organizations the highest advance payments in city history — estimated to over $5 billion in the next fiscal year.

This is about trust, respect, and making sure those who care for our city can count on their city to care for them.”

This increase more than doubles the initial $2.8 billion in advances issued in FY 2025 and reflects the administration’s intensified focus on financial reliability and equitable support for its nonprofit partners.

First Deputy Mayor Randy Mastro reinforced the city’s commitment to its nonprofit allies:

“Whether it be supportive housing and shelter for the homeless, child care centers, afterschool programs, legal services organizations, or other essential services, non-profits are on the frontlines delivering vital city-funded services upon which many of our most vulnerable New Yorkers depend everyday. This administration strives to treat our non-profit partners with the respect and consideration they deserve. With the highest advance-payment level ever, this administration is responding to our non-profit partners’ concerns.”

To complement this funding milestone, the Mayor’s Office of Nonprofit Services (MONS), led by newly appointed Executive Director Michael Sedillo, has launched an updated version of ContractStat — a performance management system designed to track metrics and insights to ensure nonprofits are paid on time and treated as equal partners.

“The Adams administration is clear: Nonprofit providers are not vendors — they are vital partners,” said Sedillo. “Whether delivering meals, shelter, mental health care, youth programming, or workforce services, these organizations maintain the safety net that millions of New Yorkers count on. The city will continue to do everything possible to ensure that providers are paid on time, treated with respect, and empowered to serve.”

Deputy Mayor for Strategic Initiatives Ana J. Almanzar added: “Today’s announcement — alongside Mayor Adams’ executive order establishing chief nonprofit officers within every human service agency — underscores our unwavering commitment to frontline organizations. Through unprecedented early investments, including a historic cost-of-living adjustment for nonprofits, we are ensuring these essential partners have the resources and the support needed for their critical work serving all New Yorkers.”

In addition to future-forward initiatives, the city is also addressing legacy financial concerns. The Mayor’s Office of Contract Services has completed its Spring Contract Backlog Initiative, unlocking over $700 million in retroactive payments for nonprofits — a significant reduction in the backlog that restores liquidity and operational stability to many groups.

“This historic advance funding underscores this administration’s commitment to supporting nonprofit providers that are critical to the well-being of our communities,” said Chief of Staff and Deputy Mayor for Administration Camille Joseph Varlack. “By aligning city resources with the needs of our partners in service delivery, we’re addressing immediate challenges and establishing a sustainable framework.”

Deputy Mayor for Health and Human Services Suzanne Miles-Gustave added, “Today’s action infuses important funds into the city’s network of nonprofits, thereby helping create more stability for both the organizations and all those they serve.”

Nonprofit advocates have welcomed the move, praising City Hall for addressing a long-standing pain point in the city’s human services sector.

“With today’s announcement, a big shoutout goes to Mayor Adams and his administration for stepping up in a major way,” said Shams DaBaron, also known as Da Housing Hero. “As someone who’s been on the receiving end of nonprofit services, I know how critical these organizations are — and how hard it is for them to do their jobs when funding is delayed… This $5 billion advance for the new fiscal year is unprecedented, and it’s going to bring real relief.”

Grace Bonilla, president and CEO of United Way of New York City, whose organization works with over 600 nonprofits, echoed this sentiment: “We see first-hand the pressures of serving some of our most vulnerable New Yorkers… Today’s announcement… does not only guarantee continuity of services, but it is a sign of good faith by the administration.”

As FY 2026 approaches, Mayor Adams’ bold financial initiative, supported by systemwide reforms like ContractStat and backlog clearance, reflects a sweeping transformation in how New York City funds and honors its nonprofit sector — recognizing these providers not just as contractors, but as core partners in the mission to serve all New Yorkers.