From Jamaica to Bay Ridge and beyond, residents in every New York City neighborhood benefit from the essential services provided by our city’s nonprofit organizations.
City government partners closely with human service providers who run childcare centers, after-school programs, community health centers, older adult services, emergency food programs, and much more.
But the survival of nonprofit providers and the services they deliver are at risk because of the City’s broken processes that have delayed payments for their work. As a result, providers are struggling to pay staff and chasing down funding they are owed, rather than being able to focus on their mission of delivering for New Yorkers.
The result of these longstanding challenges is that the City’s economy, human services workforce, and our constituents all suffer—and that cannot continue without change. Solving these problems and improving our procurement process now is particularly important, as federal funding becomes more unstable and unreliable under the Trump administration.
Our city’s nonprofits deserve leadership and real solutions that can finally move the needle so they can finally get paid on time, and the Council is ready to advance solutions.
These vital organizations are forced to rely on mere promises of payment, rather than prompt and predictable funding. In Fiscal Year 2024 alone, more than 90 percent of nonprofit contracts were registered late, forcing providers to deliver critical services without finalized contracts or guaranteed timely payment. Consequently, median payment delays exceeded 350 days, threatening both essential community programs and the employment stability of thousands of nonprofit workers.
Earlier this week, Mayor Eric Adams revealed that the mayoral administration will accelerate more than $5 billion in payments to nonprofit service providers in Fiscal Year 2026, significantly higher than the $2.8 billion provided in the current fiscal year. While this increase in upfront funding is encouraging, we must remain focused on the persistent systemic challenges that cause chronic delays in payments, which jeopardize numerous organizations essential to our city’s functioning and the nonprofit sector itself.
Furthermore, the Council called on the mayoral administration to baseline an increase of $1.5 million to recruit 20 more service desk employees at the Mayor’s Office of Contract Services (MOCS) to significantly improve response times and support as vendors adopt the PASSPort system. This funding, as well as an additional $1.9 million to fund 20 critical positions at MOCS to expedite contract processing, must be included in the adopted city budget.
Though the clearance of $700 million in delayed payments and the introduction of the upgraded ContractStat tracking system are also positive steps, they alone do not represent a comprehensive solution. Addressing backlogs temporarily manages symptoms, but does not solve the underlying causes.
Recognizing this, the City Council, which has worked tirelessly for years to champion human service providers, has proposed a detailed legislative agenda to create lasting change.
First, we are proposing legislation to mandate faster payments at the time contracts are registered, eliminating the need for nonprofits to allocate crucial resources toward chasing overdue funds.
Next, we are pursuing legislation to require mandatory reporting and accountability plans when nonprofits are not paid on time. Under this law, City agencies would be required to issue comprehensive annual reports and corrective action plans to systematically minimize contract delays, ensuring greater transparency and oversight.
To ensure nonprofit service providers have the attention and resources of a full city agency, the Council is seeking to establish a new Department of Contract Services. This specialized agency would be responsible for streamlining operations, which will foster consistent and efficient contracting practices across the City.
These reform proposals are not just half-baked or performative ideas; they would make a significant difference for the long-term health of our city’s nonprofit sector and the communities they deserve.
The successful delivery of services requires true partnership between service providers and City Hall that fully recognizes their vital contributions and the critical importance of reliable payments. New York City cannot credibly support its nonprofits while simultaneously undermining them through bureaucratic inefficiencies.
Continued payment delays undermine the stability nonprofit providers need to effectively serve communities citywide, effectively shredding our social safety net. Comprehensive, systemic reform—not temporary solutions—is urgently needed.
New Yorkers deserve dependable services, nonprofits deserve consistent support, and the city’s future depends on immediate and decisive action. It’s time for City Hall to act.
Adams is the Speaker of the New York City Council and represents parts of Queens. Brannan is the Council’s Finance Chair and represents part of Brooklyn.
