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New York City public school kindergartners will automatically receive $1,000 for college expenses, up from $100, under a budget deal announced Tuesday between Mayor Zohran Mamdani and the City Council.
The budget also restores a handful of education programs that Mamdani did not include in his preliminary proposal and were at risk of cuts, including a mental health initiative that operates clinics in schools and a program for students with disabilities who have sensory issues that interfere with their learning.
The $125.8 billion budget agreement marks the end of Mandani’s first budget cycle since taking office. Though he initially warned of a multi-billion shortfall, the mayor indicated that the deal with the City Council “balanced the budget without slashing the services that New Yorkers rely on.”
“Above all else, this budget offers a roadmap for the years to come,” Mamdani said shortly after shaking Council Speaker Julie Menin’s hand.
The mayor steered clear of some potentially controversial cuts. Earlier this month, city officials indicated that they will spend $290 million next year to keep school budgets steady even if their enrollment drops, a pandemic-era “hold harmless” policy that many school funding experts argue should be phased out. Former Mayor Eric Adams tried to wind that program down, but faced enormous backlash and reversed course.
Still, Mamdani scaled back other education initiatives. He initially planned to spend more than half a billion dollars to comply with a state mandate to shrink class sizes. After convincing the state legislature to extend the deadline to reach full compliance, Mamdani pared back class size spending considerably.
Here’s what you should know about the budget deal.
A tenfold boost for college savings accounts
All kindergartners in New York City public schools will automatically receive college savings accounts with $1,000, money that is invested in a tax-advantaged 529 account and is expected to grow before students tap it for higher education expenses. (Most charter schools have opted into the program, too.)
The NYC Kids Rise program, which launched about a decade ago, previously doled about $100 per student. Making the program more generous was a top priority for Menin who framed it as “one of the most effective ways we can truly address income inequality” and ultimately boost students’ future wages.
The money can be used for vocational schools, community college, or four-year programs. Menin said the $64 million initiative is the largest universal college savings program in the nation. Families, businesses, and other organizations can contribute as well.
City Council’s initial proposal called for depositing $3,000 into accounts for low-income families, but that did not make it into the final budget deal.
A slew of programs spared from the chopping block
Similar to prior mayors, Mamdani did not include funding for several existing education programs until he faced pressure to do so from advocates and City Council members. Those programs, restored in next year’s budget, include:
- Mental Health Continuum ($5 million) Offers mental health support at 50 schools, largely in the South Bronx and Brooklyn as well as several school-based clinics.
- Restorative justice ($6 million) Supports schools to adopt less punitive approaches to student misbehavior, such as peer mediation and circle discussions.
- Sensory Exploration, Education & Discovery ($8.4 million) Provides extra help for students with disabilities who have sensory issues that interfere with their learning.
- Outreach to immigrant families ($4 million) Helps fund efforts to communicate with families in their home languages, including translation services and in local ethnic media outlets.
- Student Success Centers ($3.3 million) Trains youth leaders to help high school students navigate the college admissions process.
The Coalition for Equitable Education Funding, a constellation of more than 120 advocacy organizations, praised the funding restorations.
“These programs are currently benefiting thousands of students and families, and we thank the Mamdani Administration and the City Council for ensuring these critical programs will continue for another year,” the group wrote, which reported the dollar amounts that were restored. (A City Hall spokesperson did not immediately confirm them.)
Fate of popular school data contract remains unclear
Mamdani vowed to slash wasteful spending in outside Education Department contracts, but his budget proposal included cuts to just one: A portal that stitches together data from various city databases. Many educators say it is a useful tool that saves countless hours that would otherwise be spent combing through creaky databases by hand.
City officials did not immediately respond to questions about whether the $8.9 million contract with the nonprofit New Visions for Public Schools would be restored in the final budget deal. A slew of educators, advocates, and lawmakers have called in recent weeks for the city to reverse the decision to cut the contract.
Alex Zimmerman is a senior reporter for Chalkbeat New York, covering NYC public schools. Contact Alex at azimmerman@chalkbeat.org.
