{"id":3280,"date":"2026-10-08T11:06:36","date_gmt":"2026-10-08T15:06:36","guid":{"rendered":"https:\/\/council.nyc.gov\/press\/?p=3280"},"modified":"2026-10-08T11:06:36","modified_gmt":"2026-10-08T15:06:36","slug":"speaker-menin-and-mayor-mamdani-cut-red-tape-to-expedite-payments-for-up-to-800-nonprofits","status":"publish","type":"post","link":"https:\/\/council.nyc.gov\/press\/2026\/10\/08\/3280\/","title":{"rendered":"Speaker Menin and Mayor Mamdani Cut Red Tape to Expedite Payments for Up to 800 Nonprofits"},"content":{"rendered":"

Streamlined grant process eliminates nine steps and allows eligible nonprofits to receive 100% of their awards of up to $25,000 within 30 days<\/em><\/p>\n

Pilot successfully cut payment timelines by approximately 300%<\/em><\/p>\n

NEW YORK<\/strong> \u2014 Today, New York City Council Speaker Julie Menin and New York City Mayor Zohran Kwame Mamdani announced the expansion of the Discretionary Grant Pilot, a streamlined approach that eliminates nine steps from the traditional discretionary contracting process and gets City funding to community-based nonprofits up to nine months faster. The expansion will include more City agencies and providers with expiring multi-year discretionary contracts, allowing up to 800 community-based nonprofits to receive 100% of their awards within 30 days after both the grantee and agency sign the grant agreement.<\/p>\n

\u201cIn all five boroughs, our nonprofits are relied upon to deliver essential services that New Yorkers need, but they face severe bureaucratic challenges that impede service delivery and keep them from being paid on-time,\u201d said Speaker Menin<\/strong>. \u201cAs a city government, it\u2019s our responsibility to fix these hurdles and ensure they receive the funds without delay. I look forward to this successful pilot continuing to break through red tape for hundreds of organizations.\u201d<\/p>\n

\u201cNon-profits play a critical role in educating young New Yorkers, supporting older adults and providing the community programs that makes New York City special. Our city government must work tirelessly to pay them quickly and efficiently so they can continue providing these essential services without disruption,\u201d said Mayor Mamdani<\/strong>. \u201cBy expanding this pilot, we are reducing barriers for 800 providers and simplifying a process that, for too long, has burdened non-profits.\u201d<\/p>\n

\u201cNew York City government depends on its nonprofit partners to deliver vital services to New Yorkers, but for too long it has not consistently upheld its end of the bargain to pay them on time and in full,\u201d said City Comptroller Mark Levine<\/strong>. \u201cThis effort will be a real victory for many service providers who often stay afloat with limited cash flow, that, if delayed by any measure, can lead to untenable operating conditions and negative downstream effects such as employee retention rates. As the City pursues progress on this front, my office looks forward to tracking it and working together towards real stability for our nonprofit ecosystem.\u201d<\/p>\n

\u201cFor far too long, our City\u2019s slow procurement process has delayed payments to the nonprofit partners we rely on to provide essential services to New Yorkers in need,\u201d said Council Member Linda Lee<\/strong>, Chair of the Committee on Finance<\/strong>. \u201cAs a former nonprofit executive, I know firsthand the challenges nonprofits face when they are expected to deliver services on time while waiting for the City to pay them. Through the expanded Council discretionary grant pilot program, we are cutting red tape and getting critical funding into the hands of the organizations that New Yorkers depend on. This will help ensure that our community-based organizations can focus on serving their communities rather than worrying about when their next City payment will arrive. I commend the Administration and Speaker Menin for their continued commitment to supporting our community-based organizations.\u201d<\/p>\n

\u201cIt is just as time consuming and labor intensive for nonprofits and City agencies to process contracts that are worth $5,000 or $500,000,\u201d said Council Member Lincoln Restler<\/strong>, Chair of the Committee on Contracts<\/strong>. \u201cThe major expansion of the City Council Discretionary Grant Pilot will not only get small nonprofits paid efficiently for their wonderful contributions to our neighborhoods, but it will also free up staff capacity at City agencies to get large contracts processed more swiftly. Credit to Mayor Mamdani, Speaker Menin and Director Kim Yu for this common sense intervention to streamline City bureaucracy and get nonprofits paid.\u201d<\/p>\n

\u201cThe expansion of the Discretionary Grant Pilot project is a huge win for small grassroots organizations like The Bushwick Starr,\u201d said Council Member Sandy Nurse.<\/strong> \u201cEach year, my office allocates over $80,000 for The Bushwick Starr to do theater programming for older adults and youth. Cutting the red tape and streamlining the city grant process means these smaller organizations can spend more time with our community and less time doing paperwork.\u201d<\/p>\n

The Mayor\u2019s Office of Contract Services (MOCS), the Mayor\u2019s Office of Nonprofit Services (MONS), and the New York City Council \u2013 in partnership with City contracting agencies \u2013 are expanding the pilot to reduce administrative burdens and reduce the human services contract backlog. Discretionary contracts account for nearly 70% of that backlog, contributing to payment delays for providers.<\/p>\n

During Fiscal Year (FY) 2026, the pilot disbursed $1 million to more than 100 providers. Participating nonprofits received funding approximately 300% faster \u2013 or, on average, in three months compared to the more than 12 months required under the traditional contracting process.<\/p>\n

Nonprofits receiving City Council discretionary funding in FY 2027 may qualify for the pilot if they are awarded a cumulative total of $25,000 or less from Mayoral agencies, including but not limited to:<\/p>\n

\u2022 NYC Department of the Aging (NYC Aging)<\/p>\n

\u2022 NYC Department of Health and Mental Hygiene (DOHMH)<\/p>\n

\u2022 NYC Department of Social Services\/NYC Human Resources Administration (DSS)<\/p>\n

\u2022 NYC Department of Veterans Services (DVS)<\/p>\n

\u2022 NYC Department of Youth and Community Development (DYCD)<\/p>\n

\u2022 NYC Housing Preservation and Development (HPD)<\/p>\n

\u2022 NYC Department of Small Business Services (SBS)<\/p>\n

In the coming days, the Mamdani administration, City Council and the contracting agencies will identify participating organizations for FY 2027, based on award amounts and clearance status, and notify them of their inclusion in the pilot. Final announcements confirming provider eligibility are expected shortly thereafter, with grant agreements to be issued in November 2026. Participating organizations will have 30 days to return signed agreements and payments will be issued in late 2026 or early 2027.<\/p>\n

As announced earlier this year, the Mamdani administration committed to accelerating funding to nonprofit providers by moving Council discretionary awards from procurements to grants. Today\u2019s announcement represents a critical next step towards continuing to realize this commitment.<\/p>\n

\u201cWithout our non-profit partners, the City would be unable to provide critical services to the New Yorkers who need them most,\u201d said Deputy Mayor for Health and Human Services Dr. Helen Arteaga<\/strong>. \u201cThe expansion of this pilot reaffirms our administration\u2019s investment in strengthening our communications, processes, and partnership with New York\u2019s non-profit providers and the communities they serve.\u201d<\/p>\n

\u201cThe City Council Discretionary Grant Pilot will ensure nonprofits have the resources they need to support New Yorkers,\u201d said MONS Executive Director Annie E. Minguez.<\/strong> \u201cEveryday nonprofits leverage City Council funding to respond to unmet needs in communities \u2013 from art therapy for children in shelters to supporting youth with social and emotional supports in schools. We look forward to exploring additional solutions to provide relief to nonprofits as they navigate the city\u2019s procurement process and the financial strain from the backlog.\u201d<\/p>\n

\u201cMarking a transformative step forward in how New York City supports its nonprofit partners, the Discretionary Grant Pilot program takes one of the most frustrating parts of city contracting and streamlines it so that these small awards can be processed in under three months on average,\u201d said MOCS Director and Chief Procurement Officer Kim L. Yu.<\/strong> \u201cBy reengineering the process, we are making it easier for these nonprofits to receive their funding from City Council and preventing new backlogged contracts that slow down the whole system. We are excited to expand this model in Fiscal Year 2027 and provide a new path for quicker, more reliable payment for our small, community-based organizations that are the heart of our City.\u201d<\/p>\n

###<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Streamlined grant process eliminates nine steps and allows eligible nonprofits to receive 100% of their awards of up to $25,000 within 30 days<\/em><\/p>\n

Pilot successfully cut payment timelines by approximately 300%<\/em><\/p>\n

NEW YORK<\/strong> \u2014 Today, New York City Council Speaker Julie Menin and New York City Mayor Zohran Kwame Mamdani announced the expansion of the Discretionary Grant Pilot, a streamlined approach that eliminates nine steps from the traditional discretionary contracting process and gets City funding to community-based nonprofits up to nine months faster.<\/p>\n

…<\/p>\n

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