{"id":2942,"date":"2025-08-21T08:39:56","date_gmt":"2025-08-21T12:39:56","guid":{"rendered":"https:\/\/council.nyc.gov\/press\/?p=2942"},"modified":"2025-08-21T14:51:40","modified_gmt":"2025-08-21T18:51:40","slug":"mayor-adams-speaker-adams-announce-bold-contract-reform-to-help-nonprofits-get-paid-faster","status":"publish","type":"post","link":"https:\/\/council.nyc.gov\/press\/2025\/08\/21\/2942\/","title":{"rendered":"MAYOR ADAMS, SPEAKER ADAMS ANNOUNCE BOLD CONTRACT REFORM TO HELP NONPROFITS GET PAID FASTER"},"content":{"rendered":"

Discretionary Funding Grant Pilot Will Cut Red Tape and Accelerate Payments to
Half Time of Traditional Contract Process for Small-Dollar Awardees<\/em><\/p>\n

New Program Eliminates 13 Steps from Contract Process to
Help Nonprofits Receive Funding They Need Without Delay<\/em><\/p>\n

Announcement Part of Mayor Adams\u2019 \u201c<\/em>NYC Nonprofit Week<\/em><\/a>,\u201d
Highlighting City\u2019s Investments and Support for Nonprofits<\/em><\/p>\n

NEW YORK \u2013<\/strong> New York City Mayor Eric Adams and New York City Council Speaker Adrienne Adams today announced a new pilot initiative to accelerate payments for a selection of small-scale discretionary funding awards and streamline the city\u2019s discretionary funding process.<\/p>\n

Launching in fall 2025, the Discretionary Grant Pilot will replace the traditional contract process with direct grant agreements for approximately 100 organizations receiving $25,000 or less in City Council discretionary dollars during its first year. The grant pilot will eliminate 13 steps, allowing eligible nonprofits to receive 100 percent of their City Council-allocated funds in nearly half the time of the current contracting process. In its second year, the pilot will be extended to hundreds of organizations that qualify.<\/p>\n

The pilot addresses long-standing inefficiencies that have required small-dollar discretionary awards to undergo the same complex registration process as multi-million-dollar, competitively bid contracts. As a result, many nonprofits have faced delays before being able to register their contract or submit their first invoices for small-dollar funding awards. This initiative comes as Mayor Adams recognizes \u201cNYC Nonprofit Week<\/a>\u201d and builds on his administration\u2019s progress in reducing the city\u2019s backlog<\/a> of unregistered contracts \u2014 achieving an 88 percent rate of on-time submissions for the registration of standard human service contracts for Fiscal Year (FY) 2026.<\/p>\n

\u201cWhen nonprofits thrive, our city and our people thrive. New York City\u2019s nonprofits do the work millions of our city\u2019s residents rely on \u2014 delivering meals to seniors, providing legal services to immigrants, connecting people to housing, caring for our young people, and so much more. In order to ensure that these organizations succeed and continue to support New Yorkers, we need to remove the different barriers and obstacles that stand in the way of their crucial mission,\u201d said Mayor Adams<\/strong>. \u201cThe new Discretionary Grant Pilot does just that \u2014 revamping the old process and replacing it with a new, streamlined approach to get the money nonprofits need and are owed to them within weeks instead of years. Nonprofits always deliver for New Yorkers, and today, we\u2019re proud to continue delivering for nonprofits.\u201d<\/p>\n

“Non-profits provide essential services to New Yorkers through city contracts and funding, but far too often are paid late for their work and forced to shoulder excessive administrative burdens,\u201d said Speaker Adams<\/strong>. \u201cThis new Council discretionary grant pilot program, in partnership with Mayor Adams’ administration, will remove excessive barriers to get non-profits their funding faster and with less red tape. The Council is proud to continue our work to ensure that our non-profit sector can successfully deliver New Yorkers the lifesaving care and dignity they deserve.\u201d<\/p>\n

Led by the Mayor\u2019s Office of Contract Services (MOCS), the Mayor\u2019s Office of Nonprofit Services (MONS), and the New York City Council<\/strong>, in collaboration with key partner agencies including the New York City Department of Youth & Community Development (DYCD<\/strong>) and the New York City Department for the Aging (NYC Aging)<\/strong>, this pilot will significantly reduce bureaucratic hurdles and speed up payments to the city\u2019s nonprofits \u2014 delivering on Mayor Adams\u2019 promise to empower organizations that serve on the frontlines of New York City\u2019s neighborhoods.<\/p>\n

Under the pilot, eligible nonprofits will receive one-year grant agreements, bypassing the traditional months-long contract registration process. Once agreements are signed and returned, 100 percent of funds will be disbursed to the nonprofits, allowing organizations to serve their communities without delayed payments.<\/p>\n

Nonprofits may qualify for the pilot if they:<\/p>\n