Nonprofit News: Mayor Announces Unprecedented $5+ Billion in Advance Payments to Be Made to City-Contracted Nonprofits Providers

PUBLISHED IN: NYC.gov

New York City Mayor Eric Adams today announced that, for the first time in city history, nonprofit providers contracted with the city will receive the highest-ever advance payments, estimated to over $5 billion, during Fiscal Year (FY) 2026, delivering much-needed upfront resources to organizations that provide critical services to the most vulnerable New Yorkers, including children, justice-involved individuals, older adults, people with disabilities, and those experiencing homelessness. Under the leadership of newly appointed Executive Director Michael Sedillo, the Mayor’s Office of Nonprofit Services (MONS) has also launched an updated version of ContractStat, a new performance management system, to bring data-driven accountability to nonprofit contracting across city agencies.

“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.”

“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,” said First Deputy Mayor Randy Mastro. “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. As always, we aim to ensure that New Yorkers continue to receive the critical services they need and deserve, and with this action today, we are doing just that.”

“The Adams administration is taking bold, strategic action to deepen the city’s partnership with the nonprofit sector,” said Deputy Mayor for Strategic Initiatives Ana J. Almanzar. “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. I look forward to advancing the work with our nonprofit partners as we continue building a better, more affordable, safer city for all.”

“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 to ensure nonprofits can continue their vital work without disruption. This initiative reflects our dedication to building a more efficient, responsive, and equitable city for all New Yorkers.”

“Nonprofits are key partners to the city helping provide critical services to individuals, children, and families in all five boroughs” said Deputy Mayor for Health and Human Services Suzanne Miles-Gustave. “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.”

“The Adams administration is clear: Nonprofit providers are not vendors — they are vital partners,” said MONS Executive Director 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.”

Each year, nonprofit providers are eligible to receive up to 25 percent of their contract value as an advance. So far, during FY 2025, the city has issued $2.8 billion in initial advances to nonprofit providers. Understanding the immense strain many providers face — from cash flow challenges to adapting to new technology platforms — the Adams administration is taking unprecedented steps to offer relief and stability to providers and will be advancing over $5 billion during FY 2026. By ensuring that more dollars than ever before are going out the door at the start of the fiscal year, the city is ensuring providers can continue offering services without disruption and support their staff with timely payroll.

Concurrently, city agencies are redoubling efforts to close out payments from prior years and clear any remaining backlogs, ensuring that legacy issues do not hinder progress toward paying nonprofits.

Earlier this spring, MONS launched an updated version of ContractStat, following a recommendation by the yearJoint Taskforce to Get Nonprofits Paid On Time. This system brings data-driven accountability to nonprofit contracting, providing both quantitative metrics — such as contract registration and payment timelines — and qualitative insights.

In parallel, the Mayor’s Office of Contract Services recently concluded its Spring Contract Backlog Initiative, unlocking over $700 million in retroactive, backlogged contracts for nonprofit organizations. This initiative has significantly reduced the city’s overall backlog — speeding up payments to nonprofit providers and restoring financial stability to many organizations.

“With today’s announcement, a big shoutout goes to Mayor Adams and his administration for stepping up in a major way. 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,” said Shams DaBaron, Da Housing Hero. “That’s why I had no hesitation stepping in to help get this issue addressed. The work that City Hall did to make today’s announcement possible was amazing. This $5 billion advance for the new fiscal year is unprecedented, and it’s going to bring real relief. It will ensure that the vulnerable New Yorkers can continue to receive the vital resources from the nonprofit organizations they depend on. I’ve always pushed for collaboration over confrontation — and this is proof that when we work together, we get real results.”

“United Way of New York City has the privilege of working with 600 nonprofits from across the city. We see first had the pressures of serving some of our most vulnerable New Yorkers, that should not include leaders wondering whether they can pay vendors or make payroll because they are waiting to get paid,” said Grace Bonilla, president and CEO, United Way of New York City. “Today’s announcement that the mayor and his administration will increase the advances nonprofits receive at the beginning of the fiscal year does not only guarantee continuity of services, but it is a sign of good faith by the administration. We look forward to continuing to work with the administration as we collectively address some of the root cause of our procurement and invoicing challenges. Today we commend the administration for their commitment to a thriving non-profit sector and thriving communities.”

“Mayor Adams has taken a bold and welcome step in committing $5 billion to remedy the City’s longstanding issues with delayed payments to nonprofit service providers,” said Kristin Miller, Homeless Services United’s Executive Director. “While much remains to be done to expedite the invoicing and payment processes, we believe this is a big step in the right direction. We applaud the administration’s investment and continuing diligence in moving toward a system where HSU members no longer worry about timely payments as they serve New Yorkers experiencing homelessness.”

“The Chinese-American Planning Council (CPC) applauds the Mayoral Administration for its commitment to the nonprofit sector through this historic amount of advances to providers,” said Wayne Ho, President & CEO of the Chinese-American Planning Council (CPC). This new policy goes a long way to reducing stress on human services organizations that are dealing with an increased demand for services and with rising costs of providing these life-saving services. We look forward to working with the City to implement this policy successfully and ensure that it covers all programs in order to provide some much needed stability for the social safety net.”

“The Human Services Council,  representing over 180 nonprofit human services providers, has fought for years for procurement reform to provide some permanent, forward progress on chronically late payments that make it difficult for nonprofits to navigate serving their communities said Michelle Jackson, Human Services Council.  There is also not one magic fix to solving this decades long problem, and the announcement today that City Hall will provide larger advances on contracts is an important step in creating cash flow relief going forward. Providers still need immediate payment on current contracts, and we look forward to working with the Administration and the New York City Council to see more systemic reform and urgent action now so that lifesaving programs can stay open and the nonprofits that millions of New Yorkers rely on can pay their bills.”

“I want to express my profound gratitude to the Mayor for his unprecedented and crucial support to the nonprofit sector” said Wesner Pierre, Chief Executive Officer of Partnership with Children. “This move, buttressing the nonprofit sector, which is integral to the infrastructure, safety, and prosperity of New York City, could not come at a more pivotal time. As the CEO of a 117-year-old nonprofit that employs hundreds and serves tens of thousands across all five boroughs of our city, this support directly benefits each of those New Yorkers. For Partnership With Children, this means we will be able to focus on our mission to provide young people growing up in poverty with trauma-informed mental health counseling, community-based programming, and healing-based arts education to break cycles of poverty and become advocates for their communities. And for the rest of the nonprofit sector, this means we can focus on continuing to uplift our city, knowing that a rising tide lifts all boats !”

“We want to thank the Adams Administration for the $5 billion dollar investment that will unlock cash advance payments for the City’s contracted non profits,” said Annie E. Minguez, Good Shepherd Services, Vice President and the Mayor’s Office of Nonprofit Services Advisory Council, Co-Chair.  This investment will ensure that contracted providers are able to have cash on hand to perform vital services for New Yorkers.  We look forward to our continued work with the administration to identify solutions that address the current fiscal challenges facing non profits and to ensure non profits are paid on time.

“Upfront payments are the solution that nonprofits have been asking for. Nonprofits, like any business, cannot survive on the promise of payment” said Dr. Jocelynne Rainey, President and CEO, Brooklyn Org. “Upfront payments will help stabilize organizations and hopefully start to improve compensation for the nonprofit workers providing services to the residents of our city. We know this approach works because that is how we do it at Brooklyn Org, and we are heartened to see progress being made at the city level to fix this unfair system.”

“This is a powerful and unprecedented investment in the nonprofit sector, and it couldn’t come at a more critical time,” said Tatiana Arguello, Executive Director of Nonprofit Staten Island. “Advancing over $5 billion at the start of the fiscal year is a clear recognition of the essential role nonprofits play in the health, stability, and future of our city. We applaud the administration for this bold step and look forward to seeing the positive impact it will have on communities across Staten Island and beyond!”