New York City schools will not face budget cuts next year despite significant enrollment drops, as Chancellor Kamar Samuels extended the “hold harmless” policy through the 2026-27 school year, according to an announcement to principals on June 7, 2026.
Though school budgets are typically tied to student head count, the city began its “hold harmless” policy during the height of the pandemic when federal relief funding was abundant and officials worried about learning disruptions. Schools kept budgets steady even as students left the nation’s largest school system, and that practice will continue.
Over the past six years, the city has spent $1.6 billion to stave off enrollment-related cuts, according to the Citizens Budget Commission, a watchdog group. Meanwhile, K-12 schools have lost nearly 10% of students during that time, dropping below 800,000 students this school year—and declines are expected to continue. NYC public schools have lost 160,000 students since 2020, falling from 1,040,000 to 880,000 students, according to research from the City University of New York.
Samuels wrote in his email to principals that “stability and predictability remain critically important for our school communities.” He added that the hold harmless investment “will provide stability and predictability for school communities as principals plan staffing, programming, and supports for the upcoming school year.”
Political and Fiscal Pressures Behind the Policy
Cuts are politically unpopular and often invite backlash. When former Mayor Eric Adams initially began winding down the program, the blowback ballooned, with families making T-shirts declaring that Adams defunded their schools. Subsequently, Adams decided to keep propping up budgets. Mayor Zohran Mamdani, who campaigned on prioritizing public school funding, has continued the practice.
Some school funding experts warn against allowing budgets to drift away from schools’ actual enrollment, which disproportionately benefits schools that have lost the most students. But educators and parent leaders note that many schools have come to rely on the money and abruptly removing it could force them to scale back programs such as music and art and let go of teachers.
The midyear budget picture shows the mounting costs. Last year, nearly two-thirds of the city’s roughly 1,600 schools had fewer students than projected. Rather than claw back money, the city held schools harmless, a decision that cost more than $250 million. Samuels said he is committed to engaging with school communities about long-term fiscal sustainability, but made no mention of what the city will do midyear when it faces another decision whether to hold schools harmless if their enrollment is lower than anticipated.
Sources
- Chalkbeat New York — Announcement of hold harmless policy for 2026-27, enrollment losses, and six-year spending total of $1.6 billion
- The City University of New York — Enrollment decline from 1,040,000 in 2020 to 880,000 currently
- Citizens Budget Commission — Six-year spending figure of $1.6 billion to prevent cuts
