Hochul Warns Adams: Utilize Migrant Funding or Forfeit It
New York City's sluggish reimbursement requests have prompted the state to freeze funding in this year's budget.
TroibNews 
NEW YORK — Mayor Eric Adams’ delay in requesting over $1 billion in state reimbursements for migrant funding has even frustrated his ally, Gov. Kathy Hochul.
Hochul is withholding any further funds for housing and serving migrants until Adams’ team utilizes what has already been allocated.
Sources familiar with the situation have reported that the city has been slow to request reimbursed funds amounting to approximately $1.3 billion for expenses dating back to 2023. Hochul has not included any additional money for the city’s migrants in her current budget.
This situation leaves Adams confronting a $1 billion shortfall in the forthcoming city budget, potentially impacting services for asylum-seekers, although he has downplayed concerns about service cuts as “premature.”
“We have delayed the administrative process to get reimbursed. And now we’re asking for money without showing our receipts,” said one city official involved in the matter who was granted anonymity to speak about private discussions. “There are active conversations with the city agencies doing all this work about shutting down their programs because the city can't figure it out.”
Programs that may face cuts include legal services for migrants, case management, and disease testing, such as for tuberculosis, according to the official.
New York City Council Finance Chair Justin Brannan, involved in budget negotiations, expressed understanding for Hochul’s reluctance to provide further funding.
“The council has serious questions and concerns around why City Hall has yet to draw down on the initial migrant funding allocation from Albany,” Brannan, who is running to be city comptroller, stated. “Do we need more money for the migrant crisis or not? Something isn’t adding up. I think a clear explanation of what is actually going on would help clear up a lot of skepticism here.”
Adams has consistently voiced concerns over the costs associated with accommodating more than 230,000 migrants since 2022. His public frustrations have strained his relationship with former President Joe Biden, whom Adams implicated in his federal indictment last year on corruption charges.
Although Adams and Hochul's relationship remains solid, this delay has led Hochul to reject his request for an additional $1 billion, marking a significant fiscal disagreement between the two centrist Democrats.
Hochul's administration has previously committed $4.3 billion for migrant housing and services amid the influx of asylum seekers beginning in the spring of 2022. Of that, about $3.1 billion was allocated for direct payments to the Adams administration. Typically, the city pays its vendors upfront and then seeks reimbursement from the state.
The city has already spent $7 billion addressing the migrant crisis but has received only $1 billion back from the state, according to Adams' Budget Director Jacques Jiha, who testified in Albany last week. The administration has also submitted another $750 million in receipts that are currently being processed. This leaves more than $1 billion in remaining state funds earmarked for the city but yet to be dispensed.
“It’s the worst kept secret in the Capitol that New York City isn’t great about submitting receipts in a timely manner,” commented one state official familiar with the matter who preferred to remain anonymous.
The Adams administration is reportedly working to expedite the complex reimbursement process with the state to access the remaining funds.
“New York City has led — and continues to lead — the nation in managing this national humanitarian crisis, and we are grateful for the state’s partnership to date,” stated Adams spokesperson Amaris Cockfield, highlighting the administration's success in moving nearly 200,000 migrants out of the municipal shelter system. “But let’s be clear: We shouldn’t be victims of our own success. … We are not out of the woods yet and still need continued partnership with and support from our state partners."
Delays in paperwork also hindered the city from unlocking federal migrant funding last year. Adams reacted with outrage to the Biden administration, accusing it of playing “a game.” This tension serves as part of Adams’ argument that the corruption charges against him stem from political retribution — a claim that prosecutors deny.
“Governor Hochul is committed to working collaboratively with Mayor Adams on their shared goals of making New York safer and more affordable,” said spokesperson Avi Small. “The FY26 Executive Budget does not include any new funding for the migrant crisis, and our position has not changed.”
There isn’t a formal deadline for the city to submit reimbursement forms to the state.
Hochul's reluctance to provide additional funds also stems from concerns that City Hall has overestimated migrant spending and failed to adjust budget amounts even when migrant arrivals and expenditures decreased, as noted in a January report by the city’s Independent Budget Office.
While there are still 46,000 migrants in city shelters, a pledge from former President Donald Trump for mass deportation may further decrease the number of migrants seeking assistance from the city.
Adams sought to balance his preliminary budget in January by anticipating $1 billion from the state. Despite Hochul's omission of this amount, Adams remained optimistic about reaching a deal, stating Wednesday that “the dance has just begun” and that any service cuts to address the budget gap were merely “hypotheticals.”
One alternative would involve the state applying its standard reimbursement formula, which would cover 29 percent of shelter costs over the year, according to Ana Champeny, vice president for research at the Citizens Budget Commission, a fiscal watchdog group. This approach would likely cost less than agreeing to a $1 billion lump sum.
“Costs and spending are coming down substantially, and there hasn’t been an agreement on the proper arrangement between the city and the state,” Champeny added. “I don’t think they’re just going to put up another billion dollars.”
Emily Johnson for TROIB News
Hochul is withholding any further funds for housing and serving migrants until Adams’ team utilizes what has already been allocated.
Sources familiar with the situation have reported that the city has been slow to request reimbursed funds amounting to approximately $1.3 billion for expenses dating back to 2023. Hochul has not included any additional money for the city’s migrants in her current budget.
This situation leaves Adams confronting a $1 billion shortfall in the forthcoming city budget, potentially impacting services for asylum-seekers, although he has downplayed concerns about service cuts as “premature.”
“We have delayed the administrative process to get reimbursed. And now we’re asking for money without showing our receipts,” said one city official involved in the matter who was granted anonymity to speak about private discussions. “There are active conversations with the city agencies doing all this work about shutting down their programs because the city can't figure it out.”
Programs that may face cuts include legal services for migrants, case management, and disease testing, such as for tuberculosis, according to the official.
New York City Council Finance Chair Justin Brannan, involved in budget negotiations, expressed understanding for Hochul’s reluctance to provide further funding.
“The council has serious questions and concerns around why City Hall has yet to draw down on the initial migrant funding allocation from Albany,” Brannan, who is running to be city comptroller, stated. “Do we need more money for the migrant crisis or not? Something isn’t adding up. I think a clear explanation of what is actually going on would help clear up a lot of skepticism here.”
Adams has consistently voiced concerns over the costs associated with accommodating more than 230,000 migrants since 2022. His public frustrations have strained his relationship with former President Joe Biden, whom Adams implicated in his federal indictment last year on corruption charges.
Although Adams and Hochul's relationship remains solid, this delay has led Hochul to reject his request for an additional $1 billion, marking a significant fiscal disagreement between the two centrist Democrats.
Hochul's administration has previously committed $4.3 billion for migrant housing and services amid the influx of asylum seekers beginning in the spring of 2022. Of that, about $3.1 billion was allocated for direct payments to the Adams administration. Typically, the city pays its vendors upfront and then seeks reimbursement from the state.
The city has already spent $7 billion addressing the migrant crisis but has received only $1 billion back from the state, according to Adams' Budget Director Jacques Jiha, who testified in Albany last week. The administration has also submitted another $750 million in receipts that are currently being processed. This leaves more than $1 billion in remaining state funds earmarked for the city but yet to be dispensed.
“It’s the worst kept secret in the Capitol that New York City isn’t great about submitting receipts in a timely manner,” commented one state official familiar with the matter who preferred to remain anonymous.
The Adams administration is reportedly working to expedite the complex reimbursement process with the state to access the remaining funds.
“New York City has led — and continues to lead — the nation in managing this national humanitarian crisis, and we are grateful for the state’s partnership to date,” stated Adams spokesperson Amaris Cockfield, highlighting the administration's success in moving nearly 200,000 migrants out of the municipal shelter system. “But let’s be clear: We shouldn’t be victims of our own success. … We are not out of the woods yet and still need continued partnership with and support from our state partners."
Delays in paperwork also hindered the city from unlocking federal migrant funding last year. Adams reacted with outrage to the Biden administration, accusing it of playing “a game.” This tension serves as part of Adams’ argument that the corruption charges against him stem from political retribution — a claim that prosecutors deny.
“Governor Hochul is committed to working collaboratively with Mayor Adams on their shared goals of making New York safer and more affordable,” said spokesperson Avi Small. “The FY26 Executive Budget does not include any new funding for the migrant crisis, and our position has not changed.”
There isn’t a formal deadline for the city to submit reimbursement forms to the state.
Hochul's reluctance to provide additional funds also stems from concerns that City Hall has overestimated migrant spending and failed to adjust budget amounts even when migrant arrivals and expenditures decreased, as noted in a January report by the city’s Independent Budget Office.
While there are still 46,000 migrants in city shelters, a pledge from former President Donald Trump for mass deportation may further decrease the number of migrants seeking assistance from the city.
Adams sought to balance his preliminary budget in January by anticipating $1 billion from the state. Despite Hochul's omission of this amount, Adams remained optimistic about reaching a deal, stating Wednesday that “the dance has just begun” and that any service cuts to address the budget gap were merely “hypotheticals.”
One alternative would involve the state applying its standard reimbursement formula, which would cover 29 percent of shelter costs over the year, according to Ana Champeny, vice president for research at the Citizens Budget Commission, a fiscal watchdog group. This approach would likely cost less than agreeing to a $1 billion lump sum.
“Costs and spending are coming down substantially, and there hasn’t been an agreement on the proper arrangement between the city and the state,” Champeny added. “I don’t think they’re just going to put up another billion dollars.”
Emily Johnson for TROIB News
