New York City’s proposed Fiscal Year (FY) 2026 operating budget relies on $7.4 billion in federal government funding, accounting for 6.4% of total spending. Recent federal government actions to cut grant programs could jeopardize at least $535 million of federal aid in FY 2025 and FY 2026, but nearly all federal operating aid that flows to the City could be subject to cuts or elimination.

For the fourth year in a row, federal pandemic relief funds resulted in New York having a positive balance of payments with Washington. For every tax dollar New York paid to Washington in Federal Fiscal Year 2023, the State received $1.06 in return; the national average was $1.32. New York’s balance of payments was $912 per capita, ranking New York 42nd among states. This report is the ninth in a series by the Office of the State Comptroller that examines the flow of funds between the federal government and the states.

The Federal Tax Cuts and Jobs Act (TCJA) included over 100 provisions amending the federal taxation of individuals and businesses beginning in tax year 2018. Should the provisions of the TCJA sunset with no additional changes made to the federal tax code, there would be little impact on New York State tax collections due to the decoupling that occurred in State Fiscal Year 2018-19. Whatever the outcome relating to the extension of the TCJA as well the inclusion of any new proposals, New York taxpayers will be impacted.

The average bonus paid to employees in New York City’s securities industry for 2024 reached $244,700, up 31.5% from last year. The bonus pool for the city’s securities employees reached a record $47.5 billion, its first major increase since the COVID-19 pandemic highs. Wall Street’s profits rose 90% in 2024.

Women in New York working full time earned 87.3 cents on the dollar compared to men in 2023, meaning they would have to work an extra 53 days into 2024 to make what New York men made at the close of 2023. The gender pay gap in New York is smaller than the national average of 81 cents on the dollar in 2023.

New York City’s efforts to address its housing shortage have led to a growth in supply that outpaced that of the State, but a drop in permits suggests slower growth may be on the horizon. The City gained 307,000 housing units from 2010 through 2023, an increase of 9%, bringing the total to over 3.7 million. Brooklyn gained the most over that time, with 11.4% growth to reach 1.1 million units or 30% of housing citywide.