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Mayor Mamdani sets 2.5% savings target for NYC agencies
The initiative includes new savings targets for FY2027 and FY2028 without reducing public services.
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Malvika Choudhary - Wed, 29, Jul 2026
- 12:40 EDT
- 26
Mayor Zohran Mamdani says city-owned grocery stores will offer essential food items at reduced prices. / X/@NYCMayor
New York City Mayor Zohran Mamdani directed all city agencies to identify 2.5 percent in savings for the next fiscal years as part of his administration's cost-cutting efforts.
The directive applies to Fiscal Years 2027 and 2028, as well as the outyears. The administration said agencies must develop savings plans while maintaining public services.
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City Hall will also launch a voluntary Workforce Savings and Efficiency Survey, inviting employees to suggest ways to reduce waste, improve efficiency and strengthen government operations.
Each submission will be reviewed by the agency's Chief Savings Officer to help shape future savings plans.
"Budget season may have just ended, but our work to build a government that delivers more for New Yorkers is never finished. Every dollar we save by making government work better is a dollar we can put toward services New Yorkers rely on," Mamdani said.
"By setting these ambitious savings targets early, we're giving agencies ample time to thoughtfully review their operations, eliminate inefficiencies and strengthen the important work they do without compromising service. And because no one understands how our government can improve better than the dedicated public servants who keep it running, we're asking them to help lead that effort," he added.
The announcement builds on the administration's broader effort to improve the efficiency and accountability of city government. Within his first month in office, Mamdani signed an executive order requiring every city agency to appoint a Chief Savings Officer. According to the administration, those officers have since identified $1.77 billion in savings.
The savings initiative also comes as the administration works to address a budget gap of more than $12 billion.
Earlier this year, Mamdani unveiled a $124.7 billion executive budget for FY2027, saying it balanced the city's finances through spending reductions, operational reforms, additional state support and new revenue measures while preserving core public services.
Alongside the savings drive, the administration has launched several government modernization initiatives. In May, Mamdani appointed the Commission of Government Efficiency, which proposed five ballot measures aimed at improving city operations.
His administration also introduced the Overhauling Procedures and Expanding Navigation (OPEN) initiative, featuring more than 50 regulatory reforms to reduce paperwork for the city's roughly 180,000 small businesses, advanced the Streamlining Procedures to Expedite Equitable Development (SPEED) report to cut red tape for housing construction, and launched a Public Interest Technology program to develop in-house digital solutions for public services.
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