NYC Expands Discretionary Grants for Nonprofits
Michael Appleton/Mayoral Photography Office
New York City is expanding its Discretionary Grant Pilot to accelerate payments to as many as 800 eligible nonprofit organizations receiving City Council funding.
New York City is expanding a grant program designed to accelerate payments to community-based nonprofits that provide essential services across the five boroughs. The expanded Discretionary Grant Pilot could benefit up to 800 organizations by removing nine administrative steps and allowing eligible providers to receive their full awards within 30 days after grant agreements are signed by both parties. During fiscal year 2026, the pilot distributed $1 million to more than 100 nonprofits, reducing average processing times from more than a year to approximately three months, according to the City. For fiscal year 2027, eligible organizations may include nonprofits receiving cumulative discretionary awards of $25,000 or less from mayoral agencies. Grant agreements are expected to begin going out in November.
Speaker Menin and Mayor Mamdani Cut Red Tape to Expedite Payments for Up to 800 Nonprofits
Streamlined grant process eliminates nine steps and allows eligible nonprofits to receive 100% of their awards of up to $25,000 within 30 days
Pilot successfully cut payment timelines by approximately 300%
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.
“In 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,” said Speaker Menin. “As a city government, it’s 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.”
“Non-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,” said Mayor Mamdani. “By expanding this pilot, we are reducing barriers for 800 providers and simplifying a process that, for too long, has burdened non-profits.”
“New 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,” said City Comptroller Mark Levine. “This 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.”
“For far too long, our City’s slow procurement process has delayed payments to the nonprofit partners we rely on to provide essential services to New Yorkers in need,” said Council Member Linda Lee, Chair of the Committee on Finance. “As 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.”
“It is just as time consuming and labor intensive for nonprofits and City agencies to process contracts that are worth $5,000 or $500,000,” said Council Member Lincoln Restler, Chair of the Committee on Contracts. “The 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.”
“The expansion of the Discretionary Grant Pilot project is a huge win for small grassroots organizations like The Bushwick Starr,” said Council Member Sandy Nurse. “Each 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.”
The Mayor’s Office of Contract Services (MOCS), the Mayor’s Office of Nonprofit Services (MONS), and the New York City Council – in partnership with City contracting agencies – 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.
During Fiscal Year (FY) 2026, the pilot disbursed $1 million to more than 100 providers. Participating nonprofits received funding approximately 300% faster – or, on average, in three months compared to the more than 12 months required under the traditional contracting process.
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:
• NYC Department of the Aging (NYC Aging)
• NYC Department of Health and Mental Hygiene (DOHMH)
• NYC Department of Social Services/NYC Human Resources Administration (DSS)
• NYC Department of Veterans Services (DVS)
• NYC Department of Youth and Community Development (DYCD)
• NYC Housing Preservation and Development (HPD)
• NYC Department of Small Business Services (SBS)
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.
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’s announcement represents a critical next step towards continuing to realize this commitment.
“Without our non-profit partners, the City would be unable to provide critical services to the New Yorkers who need them most,” said Deputy Mayor for Health and Human Services Dr. Helen Arteaga. “The expansion of this pilot reaffirms our administration’s investment in strengthening our communications, processes, and partnership with New York’s non-profit providers and the communities they serve.”
“The City Council Discretionary Grant Pilot will ensure nonprofits have the resources they need to support New Yorkers,” said MONS Executive Director Annie E. Minguez. “Everyday nonprofits leverage City Council funding to respond to unmet needs in communities – 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’s procurement process and the financial strain from the backlog.”
“Marking 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,” said MOCS Director and Chief Procurement Officer Kim L. Yu. “By 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.”
Source: New York City Council
