The New York City Comptroller’s Office has revealed that the City’s funding for asylum seeker services has been significantly overestimated. According to the 2024 annual report, The State of the City’s Economy and Finances, projections for spending on asylum seekers were inflated by billions of dollars.
“For two years, the Mayor consistently cried wolf that the City would go broke because of asylum seeker costs, when in reality the Adams Administration inflated projections for asylum seeker services by billions of dollars,” said NYC Comptroller Brad Lander. The report estimates that actual spending on asylum seekers will be $1.35 billion lower than expected in fiscal year (FY) 2025, $2.30 billion lower in FY 2026, and $1.90 billion lower in FY 2027.
The report highlights several areas where costs are expected to come in lower than budgeted, with the largest savings tied to services for people seeking asylum. The Comptroller’s Office noted that the census of this population in shelters has declined over the past year and projects an even steeper decline throughout the financial plan period, largely due to the reduced rate of border crossings experienced during the first Trump administration.
While there remains uncertainty surrounding these estimates, the Comptroller’s Office projects that the City has overbudgeted $1.35 billion for asylum seeker services in FY 2025. For FY 2026, the Office estimates an overbudget of $2.03 billion, with $1.29 billion representing City fund savings. Similarly, in FY 2027, the City is projected to have $1.90 billion more budgeted than necessary, of which $899 million could be saved in City funds. However, the Office anticipates a reversal in FY 2028, projecting $448 million more in City fund expenses than currently budgeted.
The annual report, mandated by the City Charter, provides an overview of New York City’s economic and fiscal outlook as the City prepares to begin its 2025 budget process. While the report highlights stronger-than-expected economic recovery following the pandemic, it warns of significant challenges ahead.
“New York City has climbed out from the economic downturn and disruption of the pandemic, with stronger economic growth than projected last year. But we face new economic and budget challenges from an incoming Trump administration,” Lander stated. “Cuts to federal aid, tariff changes, and immigration policies threaten to reverse recent growth and imperil the very fabric of New York City.”
Lander criticized the Adams Administration for using migrants as scapegoats and diverting attention from critical issues. “The Adams Administration has distracted New Yorkers with unnecessary fights about cuts to libraries and parks while continuing to underbudget $3 billion annually in areas they know will cost more, such as uniformed overtime and rental subsidies,” he said. He also noted that despite increased tax revenues, the administration has failed to contribute to the City’s Rainy Day Fund.
Kishor Panthi
View More PostsKishor Panthi is the founder and editor-in-chief of Khasokhas and NepYork. He is the author of three books, “Kampan,” "UNTRANSLATABLE" and “Zero Mile.” He writes about social issues, immigration, and politics.
