Federal funding is received by New York State through grants for a range of purposes, including health care, transportation, public assistance, education, employment and training, and emergency response and recovery. The greatest share of federal receipts – an estimated 87 percent in SFY 2026 – supports health and human services programs.
Federal Disbursements in New York State Budget by Function, SFY 2026
Note: Figures are as projected in January 2025
Source: NYS Division of the Budget, FY 2026 NYS Executive Budget Financial Plan
The FY 2026 NYS Executive Budget Financial Plan indicates the State expects approximately $91 billion annually in the Financial Plan years, though these figures do not take into account recent actions by the White House or actions currently under consideration by Congress. Federal pandemic relief funds are projected to decrease to just $1.3 billion in SFY 2026 and to less than $100 million in the following years.
Federal Funds Disbursements, as Projected in FY 2026 NYS Executive Budget Financial Plan,
SFY 2025 – SFY 2029 (dollars in millions)
| 2025 | 2026 | 2027 | 2028 | 2029 | |
|---|---|---|---|---|---|
| Medicaid | $56,059 | $57,618 | $58,427 | $56,924 | $58,133 |
| Health | $15,859 | $16,341 | $17,109 | $17,736 | $18,260 |
| Social Welfare | $5,436 | $5,277 | $5,400 | $5,148 | $5,148 |
| Education | $4,458 | $4,387 | $4,387 | $4,387 | $4,387 |
| Transportation | $2,372 | $2,839 | $2,912 | $2,924 | $2,961 |
| Public Protection | $1,326 | $1,337 | $1,303 | $1,301 | $1,302 |
| All Other | $1,703 | $1,683 | $1,705 | $1,757 | $1,737 |
| Pandemic Relief | $9,118 | $1,347 | $93 | $24 | $24 |
| Total | $96,331 | $90,829 | $91,336 | $90,201 | $91,952 |
Note: All Other includes housing and homeless services, economic development, mental hygiene, parks, environment, higher education, and general government areas, as designated by DOB.
Source: NYS Division of the Budget, FY 2026 NYS Executive Budget Financial Plan
Major Grants
While federal funding priorities may result in changes in particular funding streams, funding for Medicaid dwarfs all other major grants and revenues. Since federal fiscal year (FFY) 2021, the federal government has allocated more than $50 billion in Medicaid grants providing reimbursement for New Yorkers’ health care. Additional health funding includes an estimated $11.1 billion in federal funding for the Essential Plan and $1.5 billion for the Children’s Health Insurance Program in FFY 2024.
The State receives several large grants to provide assistance to low-income households or to administer federal programs providing that assistance. The largest is the Temporary Assistance for Needy Families block grant, which was $2.4 billion in FFY 2024, and supports spending on public assistance, child care and other programs. Other large grants providing assistance to New Yorkers include the Low Income Home Energy Assistance Program and meals for school children.
Other large grants include Pell Grant Awards for students in higher education, Title I grants for school districts with disadvantaged students, and grants that provide for transportation, clean water and other infrastructure.
Not all federal grant funding is used in the year it is received. Federal laws and rules along with the type and timing of grant awards and their purpose affect spending by the State and other entities.
Federal Allocations of Major Grants in the New York State Budget,
Select Years (dollars in thousands)
| FFY 2015 | FFY 2023 | FFY 2024 | |
|---|---|---|---|
| Medicaid: Vendor Payments | $34,493,862 | $56,722,770 | $53,122,103 |
| Temporary Assistance For Needy Families | $2,442,931 | $2,434,869 | $2,434,869 |
| Pell Grants | $1,797,400 | $1,891,900 | $2,314,600 |
| Title I: Local Education Agencies | $1,104,439 | $1,458,158 | $1,640,464 |
| Medicaid: Administration | $990,109 | $1,375,294 | $1,494,778 |
| Children's Health Insurance Program | $972,787 | $1,393,963 | $1,467,882 |
| National Highway Performance Program | $898,120 | $1,163,417 | $1,186,714 |
| Special Education Basic State Grant | $750,547 | $904,936 | $1,041,313 |
| Child Nutrition: School Lunch | $674,381 | $880,325 | $948,566 |
| Surface Transportation Block Grant | $413,969 | $566,698 | $578,032 |
| SNAP State Administration | $350,409 | $532,491 | $547,253 |
| Clean Water State Revolving Fund Grants | $155,520 | $316,063 | $430,461 |
| Low Income Home Energy Assistance | $381,233 | $558,919 | $411,980 |
| IIJA Bridge Formula Program | $0 | $408,973 | $408,973 |
| Child Care & Development Block Grant | $108,788 | $357,012 | $402,775 |
| Child Nutrition: School Breakfast | $194,558 | $327,988 | $367,382 |
| Vaccines for Children | $240,234 | $258,497 | $351,483 |
| Consolidated Health Centers | $232,571 | $276,721 | $341,286 |
| Foster Care | $404,848 | $285,381 | $311,958 |
| Unemployment Insurance State Administration | $206,257 | $228,793 | $255,999 |
Note: Includes grants over $300 million except for Unemployment Insurance (UI) State Administration. SNAP is the Supplemental Nutrition Assistance Program and IIJA is the federal Infrastructure Investment and Jobs Act (2021). TANF block grant does not include an additional $278 million allocation from the Contingency Fund for State Welfare Programs for the TANF Block Grant. This table does not include funding received by local governments, housing and public transportation authorities and other entities. It does not include funding for New York’s Essential Plan.
Source: Federal Funds Information for States, Master Grants Database, sorted by the FFY 2024 President's Budget.