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New York · Community

NYC expands grant pilot: up to 800 nonprofits to get city funds within 30 days

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Council Speaker Julie Menin and Mayor Zohran Mamdani announced on Oct 8 the expansion of the Discretionary Grant Pilot: nine steps cut, funding up to nine months faster, with up to 800 community nonprofits receiving 100% of awards (up to $25,000) within 30 days of signing.

Why it matters

Nonprofits are the backbone of New York's social services, yet they have long been paid late by the city, straining cash flow. The pilot cut average payment times from more than 12 months to three; discretionary contracts account for nearly 70% of the human-services contract backlog, so streamlining small awards also frees staff to process large contracts faster.

Full report

New York City Council Speaker Julie Menin and Mayor Zohran Kwame Mamdani announced on Oct 8 the expansion of the Discretionary Grant Pilot: nine steps are eliminated from the traditional discretionary contracting process, getting city funding to community-based nonprofits up to nine months faster. The expansion brings in more city agencies and providers with expiring multi-year discretionary contracts, covering up to 800 community-based nonprofits.

Eligibility: nonprofits receiving City Council discretionary funding in FY 2027 with a cumulative total of $25,000 or less from mayoral agencies — including the departments of Aging, Health and Mental Hygiene, Social Services/HRA, Veterans' Services, Youth and Community Development, Housing Preservation and Development, and Small Business Services. They will receive 100% of their awards within 30 days after the grant agreement is signed by both sides.

By the numbers: in FY 2026 the pilot disbursed $1 million to more than 100 providers, with funding arriving about 300% faster on average — three months versus more than 12 months under the traditional process.

Timeline: the administration, Council and contracting agencies will identify FY 2027 participants in the coming days; grant agreements go out in November 2026; organizations have 30 days to return signed agreements; payments will be issued in late 2026 or early 2027.

Menin said nonprofits in all five boroughs deliver essential services New Yorkers need, and city government must fix the bureaucratic hurdles and pay them without delay. Mamdani said the city must work tirelessly to pay nonprofits quickly so they can keep serving without disruption. City Comptroller Mark Levine called it 'a real victory' for providers operating with limited cash flow, where any delay can threaten staff retention.

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