Federal Funding and New York

The budget resolutions currently under consideration by the 119th Congress could lead to a dramatic restructuring of the federal⁠⁠-⁠⁠state⁠ ⁠relationship. This online resource focuses on federal funding and how it supports services in the State of New York.

Social Services Block Grant

Federal Funding and New York
The budget resolutions currently under consideration by the 119th Congress could lead to a dramatic restructuring of the federal⁠⁠-⁠⁠state⁠ ⁠relationship. This online resource focuses on federal funding and how it supports services in the State of New York.

Federal Funding and New York - Page Style

The Social Services Block Grant (SSBG) (Assistance Listing Number 93.667), provides flexible federal funding, administered through the United States Department of Health and Human Services to states and territories to support social services for low-income households. SSBG was first established in 1981 through the Omnibus Reconciliation Act as a cost-saving tool which consolidated smaller federal and state funding streams into a single block grant. Each state may determine which population and services to support. New York State has an income eligibility of 200 percent of the federal poverty level. Federal law established five broad goals which aim to reduce dependency; promote self-sufficiency; prevent abuse, neglect or exploitation of children and adults; reduce unnecessary institutional care, and support institutional care, when appropriate.

Funds to New York City

The January Preliminary Plan includes $246 million for SSBG for FY 2025, with the Administration for Children’s Services (ACS) receiving 71.3 percent, the Department of Social Services (DSS) 19.6 percent and the Department for the Aging (DFTA) 9 percent (see Figure 1).

FIGURE 1 – SSBG Uses, FY 2026 Preliminary Budget  (in millions)

SSBG Funds by ServicesFY 2025FY 2026
ACS
Preventive Services$ 92.7$ 92.7 
Protective Services30.430.4
Foster Care Services and Support24.324.3
General Administration19.119.1
All Other9.19.1
Subtotal $ 175.6 $175.6 
DSS
Adult Protective Services$ 27.1$27.2 
Domestic Violence Services 17.817.8
General Administration1.81.8
All Other1.51.7
Subtotal$ 48.2$ 48.5 
DFTA
Senior Centers and Meals$ 22.39.0
Subtotal$    22.3$    9.0
Total$  246.1$233.1

Note: Numbers may not add due to rounding.

Sources: NYC Office of Management and Budget; OSC analysis


Impact

  • ACS is most dependent on SSBG funding for its preventative services, which are intended to reduce the time that children spend in foster care. In total, SSBG funds make up 27 percent of ACS’ planned spending for preventative services for FY 2025, and 28 percent for FY 2026.
  • DSS is most dependent on SSBG funding for Adult Protective Services (APS), which aids adults who are mentally and/or physically impaired and unable to manage their own resources. SSBG funding makes up 42 percent of DSS’s total planned spending for APS in both FY 2025 and FY 2026.
  • The demand for APS services has also grown. DSS received 29,433 APS referrals in FY 2024, compared to 23,485 in FY 2023 and 19,403 in FY 2022. In the first four months of FY 2025, APS referrals were up 17 percent from the same period in FY 2024.
  • DFTA plans to spend 100 percent of SSBG’s funding on senior centers and meals in FY 2025.