Mayor Adams, Speaker Adams Announce Bold Contract Reform to Help Nonprofits Get Paid Faster

NEW YORK – 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’s discretionary funding process. 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. 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 “NYC Nonprofit Week” and builds on his administration’s progress in reducing the city’s backlog of unregistered contracts — achieving an 88 percent rate of on-time submissions for the registration of standard human service contracts for Fiscal Year (FY) 2026.

“When nonprofits thrive, our city and our people thrive. New York City’s nonprofits do the work millions of our city’s residents rely on — 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,” said Mayor Adams. “The new Discretionary Grant Pilot does just that — 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’re proud to continue delivering for nonprofits.”

"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,” said Speaker Adams. “This 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.”

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

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.

Nonprofits may qualify for the pilot if they:

·         Were awarded a total of $25,000 or less in City Council discretionary dollars in FY 2026; and

·         Are being funded through one of the following agencies:

·         DYCD

·         NYC Aging

·         New York City Department of Veterans’ Services

·         New York City Department of Small Business Services

The City Council, MOCS, and the contracting agency will determine participating organizations to be chosen as the pilot cohort for FY 2026 and notify them of their inclusion in the pilot. Final announcements are expected in October 2025, with grant agreements to be issued shortly thereafter. Participating organizations will have 30 days to return signed agreements and can expect to receive funding by January 2026.

This initiative builds on the Adams administration’s 2023 multi-year discretionary contract reform and has already shown significant progress in getting City Council discretionary providers paid on time.

In March 2024, the administration committed $741 million toward a cost-of-living adjustment for approximately 80,000 human services workers employed by nonprofits with city contracts. This workforce — 66 percent women and 46 percent women of color — plays a critical role in providing frontline services related to housing, health care, food access, and support for asylum seekers. In total, the administration has now directed over $1.4 billion toward wage enhancements in the sector.

In January 2025, Mayor Adams issued Executive Order 47, formally establishing chief nonprofit officers within city agencies to enhance service delivery, respond to nonprofit partners more effectively, and speed up payment processing. To date, 18 chief nonprofit officers have been appointed and are actively collaborating with nonprofits to drive systemic improvements. Finally, Mayor Adams created the city’s first-ever Nonprofit Advisory Council, bringing together leaders from across the sector to collaborate with MONS and strengthen the connection between nonprofit organizations and city government.

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