Investing in People: How NYC's Budget Shapes Schools, Housing, and Social Services

The Budget as a Moral Compass

While every budget is built from figures, they speak in values. Nowhere is this more evident in New York City than in the significant investments made in schools, housing, and social services. These are not luxuries; they are fundamental building blocks of dignity. A child’s classroom size, a family’s housing stability, an older adult’s access to care- this is at the heart of what the budget delivers.

Using Classrooms to Center

Education is New York City’s largest single line item. The NYC Department of Education’s Fiscal Year 2025 budget was $41.2 billion, allocated to instruction, operational expenses, and related services. That money is essential. It matters whether a classroom will have 22 kids or 32, whether a school can afford art, music, or support for special education students. The ripple effects of these decisions are felt daily by the kids, educators, and families.

The city should not shoulder this responsibility alone. Approximately 57.3 percent of the DOE’s budget is funded with local (i.e., NYC) dollars, roughly 36 percent is funded through New York State resources, and approximately 6.2 percent comes from federal funding. When budget cuts occur, they have tangible effects: libraries close, fewer instructional supports are available, and class sizes grow larger. When funding increases, neighborhoods are uplifted, more staff are hired, safer school buildings are constructed, and more enriched programming is offered, among other benefits.

Housing: The Unfinished Promise

New York City is overwhelmingly a city of renters, and the question of affordability has emerged as its primary fault line. We can see this stretched to a limit in the NYCHA Operating Budget: in 2024, NYCHA forecasted $4.96 billion in revenue, while operating expenses were also approximately $5.0 billion, resulting in a structural deficit. NYCHA has over 12,000 full-time employees, primarily for maintenance, inspections, and social services. Meanwhile, homelessness is one of the most pressing issues. The Department of Homeless Services (DHS) is budgeted at $2.64 billion in the Preliminary FY 2026 plan, although this amount has decreased significantly from e