New York City’s welfare rolls have reached their highest point in approximately 30 years, with nearly 865,000 residents receiving public assistance over the past year. This surge has driven spending on cash assistance to a record $2.7 billion, according to an examination of agency records.
The number of welfare recipients for the 12-month period ending May 30 increased by 55.7% since 2022. The city’s budget for these payments has also climbed significantly, rising 72.6% from $1.57 billion in fiscal year 2022 to the current $2.71 billion for the fiscal year beginning July 1.
Critics have expressed concern that the rising caseload, which they attribute in part to policies aimed at making more residents reliant on government aid, could be exacerbated by the current administration's approach to the economy. Councilwoman Joann Ariola (R-Queens) stated, "This is the Communist Playbook 101: make everyone reliant on the government, so the masses have no choice but to support the people signing their checks." She also voiced fears that rhetoric encouraging wealth taxes could drive away businesses and jobs, further increasing welfare dependency.
Previous administrations have also seen significant welfare caseloads. When Rudy Giuliani took office in 1994, the number of welfare recipients was higher than the current figures, reaching a peak of 1,160,593 by March 1995 before reforms led to a decrease. By the end of Michael Bloomberg's tenure in December 2013, the number had fallen to 346,398. Under Mayor Bill de Blasio, the rolls dropped to a low of 336,403 in May 2014 but rose to 384,523 by the end of 2021, partly due to simplified application processes and the economic impact of the COVID-19 pandemic.
The Department of Social Services (DSS) previously attributed the rise in welfare rolls to the economic effects of the pandemic, citing increased rents, food costs, and the end of pandemic-era eviction moratoriums and payments. However, critics argue these pandemic-related excuses are no longer valid.
The agency stated its current focus is on using available tools to advance economic justice and support New Yorkers in need. It highlighted an improvement in processing cash-assistance applications, with 70% being processed on time this year, a significant increase from figures as low as 14% during parts of the previous administration. The DSS also noted a slight monthly decrease in caseloads in recent months, with May seeing 576,123 recipients, a 4% reduction from the same month a year prior.
Concerns persist among policy analysts regarding the long-term implications of rising welfare rolls. Stephen Eide, a senior fellow at the Manhattan Institute, noted that a growing economy is crucial for moving people from welfare to employment, and questioned where the necessary capital would come from given the current administration’s stance on wealth. He also suggested that the administration might not view high welfare rolls as a policy failure.
Councilman Phil Wong (D-Queens) echoed these concerns, stating that the large caseload indicates the economy is not working for many New Yorkers and that the city should prioritize creating an environment that allows more people to earn a living rather than rely on government assistance.