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.
Historic federal pandemic relief funds, though being spent down, continued to boost New York’s balance of payments in Federal Fiscal Year 2022. For every dollar New York sent to the federal government in tax receipts, it received $1.06 back in federal spending, as compared to a national average of $1.28, ranking New York 39 out of 45 states with a positive balance of payments. This report is the eighth in a series by the Office of the State Comptroller that examines the flow of funds between the federal government and the states.
The size of New York City’s immigrant workforce was flat over nearly a decade. Through 2023, the foreign-born labor market grew 18.5% since 2015 nationally, while New York City’s declined 0.6%, according to data analyzed from the Bureau of Labor Statistics. Still, in 2023, New York City’s 1.8 million foreign-born workers made up 44.3% of its total labor force, more than double the national share of 18.6%.
The surge in federal spending in response to the COVID-19 pandemic significantly improved New York’s per capita ranking in the federal balance of payments from 49th in 2019 to 30th in Federal Fiscal Year 2021. For every dollar New York sent to the federal government in tax receipts, it received $1.51 back in federal spending, as compared to a national average of $1.70. This report is the seventh in a series by the Office of the State Comptroller that examines the flow of funds between the federal government and the states.
Historic relief funds from the federal government, provided in response to the COVID-19 pandemic, boosted New York’s per capita balance of payments from Washington from second-to-last in federal fiscal year 2019 to 40th in 2020. During this period, New York received $1.59 for every tax dollar paid to Washington, an increase from 91 cents from the prior year, but still below the national average of $1.92.
Although New York City was an early epicenter for COVID-19, only 45.6 percent of firms in the City received Paycheck Protection Program (PPP) loans, below the national average of 50.9 percent.
New York State’s population increased by 2.1 percent between 2000 and 2010 – the fifth slowest rate of growth among all states nationwide. Gains or losses in population cause a shift in the local tax base, drive adjustments in State and federal revenue allocations, and influence the demand for municipal services and infrastructure.
Federal aid is a critical component of local government revenues. Proposed changes to federal education policy, expanded military spending and the Executive Order declaring "sanctuary jurisdictions" ineligible for some federal grants could also affect New York's local governments. This report and the accompanying interactive data use information reported by local governments to help local officials and citizens understand how they could be affected by such changes.
