NYC promises to hold school budgets steady despite enrollment declines

Cayla Bamberger, New York Daily News on Jun 4, 2025

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NEW YORK — All New York City public schools will receive at least as much funding for the upcoming school year as their initial budgets last fall, Mayor Eric Adams announced Wednesday evening as his Democratic challengers took the stage for the first mayoral debate.

The funding is guaranteed to all principals, even those who are projected to lose enrollment.

City Hall estimated the total cost of stabilizing school budgets would come to $128 million. The local Education Department may still claw back funding in the middle of next school year, depending on how many students ultimately enroll — a problem that may be Adams’ successor’s as the mayor faces an uphill battle to re-election as an independent.

“A strong city starts with strong schools, and that’s why we’re committing $128 million to stabilize schools budgets despite enrollment changes — so principals can plan with certainty, and our students can continue to learn, grow, and thrive,” Adams said in a statement.

The school budget policy, known as “hold harmless,” started during the COVID-19 pandemic with federal stimulus dollars. But as principals introduced new programs and hired additional staff, Adams has been under pressure to continue funding schools at the same levels.

While schools logged steep enrollment declines during the pandemic era, those trends have mostly leveled, thanks in part to an influx of migrant students who face an uncertain future in the United States under President Trump.

The promise of additional funding comes as the school system faces economic headwinds. This spring, Gov. Kathy Hochul and the state Legislature made tweaks to New York’s primary education formula, resulting in New York City receiving $314 million less than if no changes had been introduced.

And amid threats of federal funding cuts and moves to dismantle the U.S. Education Department, the leaders of the city’s school system have remained tight-lipped on contingency plans. They have not announced any major cuts so far to the nation’s largest school district.

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