The financial strain from the migrant crisis continues to grow.
New York City has likely surpassed $5 billion in expenses related to services for migrants, with nearly $2 billion spent solely on housing the influx of new arrivals, according to city data.
The city’s online asylum-seeker funding tracker shows that a combined $4.88 billion was spent across fiscal years 2023 and 2024. Given the current spending rate, the city has likely exceeded $112 million since the new fiscal year began on July 1, pushing the total above $5 billion.
Mayor Eric Adams’ administration projects that costs could double, reaching $10 billion by the end of the three-year period ending June 30, 2025.
The expenses so far include:
- $1.98 billion on housing and rent
- About $2 billion on services and supplies
- Nearly $500 million on food and medical costs
- Another $500 million on IT, administrative, and other costs
The NYPD alone has spent $21 million on public safety and security in response to the disorder around city-funded migrant shelters. The total cost of the crisis is nearly equal to the entire NYPD budget of $5.75 billion.
This week, the Department of Homeless Services posted two more contracts totaling $40 million to provide services to migrants at hotels converted into emergency shelters, including properties in the heart of the Broadway tourist district.
The city is currently caring for over 63,900 migrants across 210 sites in the shelter system.
Addressing the ongoing crisis, Adams’ Chief of Staff, Camille Joseph Varlack, emphasized that this is a global issue and not just a problem for New York City. Varlack added that city staffers are working to move migrants from hotels to other locations, though challenges remain, especially in transitioning migrants from shelter settings to housing when many lack official documentation for legal employment.
Despite a public backlash to shelters in many parts of the city, Adams stated that the situation has become more manageable, though the city is still “not out of the woods.” He credited policies such as shelter stay limits and a decrease in border crossings with lessening the migrant population and curbing skyrocketing costs.
