NYC Comptroller Brad Lander Issues Annual Report on Capital Debt & Obligations for Fiscal Year 2026

New York, NY — Today, New York City Comptroller Brad Lander released the Annual Report on Capital Debt and Obligations for Fiscal Year (FY) 2026. The report analyzes the City of New York’s outstanding debt, remaining borrowing capacity, debt affordability, and credit profile. The report highlights the City’s advantage of being a leader of the global economy but also identifies long-term challenges of funding necessary infrastructure projects through the utilization of long-term debt.

The City primarily issues debt to fund its capital program through a combination of General Obligation (GO) and NYC Transitional Finance Authority Future Tax Secured (TFA FTS) bonds, both of which count against its debt limit. New York State budget amendments have injected $17.0 billion of additional debt-incurring capacity since July 1, 2024; however, this capacity is projected to decline in future years.

The Comptroller’s Office estimates that the City’s FY 2026 general debt limit of $140.6 billion will increase to $158.6 billion in FY 2029. Over that same time period, total indebtedness counted against the statutory debt limit is projected to grow from $96.3 billion at the beginning of FY 2026 to $131.7 billion by the beginning of FY 2029. This means that the City’s remaining debt-incurring capacity – the amount of new debt the City is authorized to borrow, under the State Constitutional debt limit – is projected to fall from $44.4 billion currently to $26.9 billion at the beginning of FY 2029.

“We need more diligent planning of the borrowing required to fulfill our infrastructure needs if we are going to invest strategically in the roads, bridges, school buildings and housing that determine our future success,” said New York City Comptroller Brad Lander. “Now more than ever, as funding from the current federal administration is constantly under threat, failing to properly manage our debt service jeopardizes the City’s fiscal health and the good credit rating based on our strong financial management. This year’s capital debt and obligations report is a clear reminder of what’s at stake absent stronger capital planning practices.”

Upon release of the FY 2026 Adopted Budget in June 2025, the City, through its GO and TFA FTS credits, was projected to borrow (issue) an average of $14.2 billion annually between FY 2026 through FY 2029, with the greatest estimated borrowing of $15.0 billion expected to occur in FY 2029.

Based on an analysis of assumptions in the FY 2026 September Capital Commitment Plan, the City’s 15.0% share of tax revenues dedicated to the debt service policy threshold will be under increased pressure if the City continues the trend of exceeding its annual commitment rate (in some ways a welcome trend from the past, when the City frequently failed to deliver the projects it had planned), and/or if tax revenues are lower than projected and do not meet the Financial Plan’s expectations.

Comptroller Lander is again calling for the implementation of a mechanism to be formally adopted into the City’s Debt Management Policy to ensure that the City’s 15% debt service threshold is operational and to identify and address any potential breaches of it. Comptroller Lander first called for the City to establish this mechanism in his report “How Much is Enough”, to protect against factors outside of the City’s control, especially in later fiscal years where less cushion is projected. As the City’s capital program continues to grow, adhering to a debt service policy threshold is necessary to make sure that the City’s debt service expense remains affordable for future generations.

Citing the City’s large and diverse economy, sound financial management and liquidity, the City’s GO bonds all have a stable outlook and are currently rated Aa2 by Moody’s, AA by S&P and Fitch, and AA+ by Kroll. Although the City’s debt burden is high, it is currently regarded by the rating agencies as manageable and appropriate given the scale of the City’s responsibilities.

View the full Annual Report on Capital Debt and Obligations including more takeaways of the City’s capital debt at https://comptroller.nyc.gov/reports/annual-report-on-capital-debt-and-obligations-fiscal-year-2026/.

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