In a recent announcement, Jacques Jiha, the chief budget officer under Mayor Adams’ administration, voiced that the city cannot currently promise to counterbalance any potential funding reductions introduced by President Trump using city resources. Given the substantial amount of federal funding that may be targeted, Jiha advised that the idea was currently impractical. The federal funds amounting to nearly $10 billion, which the city receives annually, supports diverse initiatives such as assistance for low-income individuals in terms of food and rent, various educational programs, and healthcare services through Medicaid.
Jiha communicated at a City Council meeting on Wednesday, that it was impossible to make any firm commitments regarding the budget at this moment due to the uncertain nature of the incoming changes. He added that they were unsure about which potential cuts would eventually be implemented. Amid inquiries on whether the Adams administration would look to municipal financing to cover the gaps resulting from federal cuts, Jiha indicated it was a difficult situation unfolding for everyone concerned.
Adding to these concerns, Jiha revealed that the administration hasn’t yet succeeded in securing additional state migrant crisis funds from Governor Hochul’s office. Previously, it was reported that the mayor’s team had prepared a spending outline for the upcoming fiscal period based on expectations of at least $1 billion from the state for migrant funding. While announcing this matter at the City Council hearing, Jiha speculated on potential city budget cuts if Hochul does not reconsider her decision.
Emphasizing the urgency of the situation, Jiha said, ‘Hopefully, we’ll come to a resolution.’ Over recent years, Mayor Adams implemented several significant city budget reductions affecting areas such as libraries, parks, and other public services. However, a majority of these cuts saw reversals following considerable criticism from Council Democrats. The mayor has often justified such cuts as necessary measures to neutralize the city’s steep expenditure on housing and services for recently-arrived migrants.
Jiha’s report at the Council Finance Committee hearing, which signals the commencement of this year’s municipal budget evaluation season, hinted that more city spending cuts could surface. The mounting apprehension about the potential implications of Trump’s funding cuts on crucial local programs is becoming palpable. Trump has indicated plans to penalize local jurisdictions that don’t align with his policies, which include his stringent pledge to initiate ‘mass deportations’ and restrict transgender youth from school sports involvement.
Further potential cuts may have found a path following actions by Trump’s Republican colleagues in the House, who last month passed a budget proposal to cut federal spending by $2 trillion. While this proposal awaits Senate approval, if passed, it would result in substantial reductions in funding for the SNAP food assistance program and removal of hundreds of thousands of people from Medicaid.
Jiha, serving as Adams’ chief budget negotiator, could not provide a specific assessment of the potential risk to city funding due to these actions from Trump and congressional Republicans. He pointed to the current unpredictability of the situation as the reason behind this. However, when asked about any contingency plans, Jiha reassured that his Office of Management and Budget team was working on potential solutions.
Despite not sharing any details about these plans, Jiha made it clear that revealing them could provide Trump’s administration with excessive information about the city’s approach. However, this did not convince the Council Finance Committee Chairman, who criticized the lack of a clear strategy from City Hall in response to the looming budget cuts from Trump.
His concerns were mainly centered around actions taken last month by Trump’s administration, which pulled out $80 million from the city’s government accounts in federal migrant crisis funds under a false pretense that these monies were being used towards housing migrants in premium accommodations. This led to Mayor Adams’ administration filing a lawsuit against Trump in an attempt to retrieve the seized funds.
The Chairman criticized Adams for his initial lukewarm response to the situation as well as ongoing internal conflicts within Jiha’s office related to the legal battle. However, Jiha avoided addressing the threat of internal tensions directly at the hearing. Instead, he told Council members that his office was grappling with a multitude of challenges and added: ‘We’re trying to do the best we can to do our jobs. This is a very trying time.’
As per statutory requirements, both the mayor’s office and the Council must reach an agreement on the city’s budget by July 1, marking the start of the 2026 fiscal year. While dealing with the potential of federal cuts, the city must navigate these testing waters cautiously, considering the interest of their inhabitants and the varied services the city provides.