The New York City Council’s June 4, 2026 FY27 executive budget hearing pressed the Department of Social Services (DSS), its divisions the Human Resources Administration (HRA) and the Department of Homeless Services (DHS), and the mayoral vendor partners about widespread nonprofit contracting and payment delays, reporting an average 31-day invoice-to-payment cycle as of March 2026, mixed on-time rates across agencies, and continued work with the Passport migration vendor Mox to resolve system-related issues. Source: https://youtu.be/daUwunHDBcs&t=2670, https://youtu.be/daUwunHDBcs&t=2745, https://youtu.be/daUwunHDBcs&t=2818
# What’s happening
– DSS reported average invoice-to-payment cycle across DHS and HRA is 31 days as of March 2026. Source: https://youtu.be/daUwunHDBcs&t=2670
– DHS on-time payment rate reported 68%; HRA on-time payment rate reported 41% (June 4, 2026). Source: https://youtu.be/daUwunHDBcs&t=2818
– DHS and HRA said they meet regularly with vendor Mox and are monitoring Passport-related issues. Source: https://youtu.be/daUwunHDBcs&t=2745
# Why it matters
– Nonprofit service providers face cash-flow stress that can delay payroll and program delivery for vulnerable New Yorkers. Source: https://youtu.be/daUwunHDBcs&t=91
– Delayed reimbursements can interrupt services residents rely on, including shelter, legal assistance, and food programs. Source: https://youtu.be/daUwunHDBcs&t=91
# Key details
– Average invoice cycle time across DHS and HRA: 31 days (reported March 2026). Source: https://youtu.be/daUwunHDBcs&t=2670
– DHS on-time payment percentage: 68%; most DHS delays are within 30 days; none reported beyond 365 days. Source: https://youtu.be/daUwunHDBcs&t=2818
– HRA on-time payment percentage: 41%; 14% of HRA delays within 30 days; ~26% between 181–365 days. Source: https://youtu.be/daUwunHDBcs&t=2818
– Agencies report Passport system migration caused submission and invoicing snags; agencies conduct proactive outreach to providers. Source: https://youtu.be/daUwunHDBcs&t=2745
– Agencies said they meet regularly with Mox (vendor cited at hearing) to resolve Passport and payment issues. Source: https://youtu.be/daUwunHDBcs&t=2745
– At the hearing, agencies did not provide a single dollar total of delayed payments or a firm timeline to clear all vendor backlogs. Source: https://youtu.be/daUwunHDBcs&t=2818
The City Council convened the FY27 executive budget hearing on June 4, 2026 to question DSS leadership about nonprofit contracting and payment delays. Source: https://youtu.be/daUwunHDBcs&t=258
**Department of Social Services (DSS)**
– Role or jurisdiction: City agency umbrella for the Human Resources Administration (HRA) and the Department of Homeless Services (DHS).
– Action taken or responsibility: Reported invoice cycle times, on-time payment rates, and steps to address Passport migration problems.
– Relevant numbers or dates: Average 31-day invoice cycle (March 2026); hearing on June 4, 2026. Source: https://youtu.be/daUwunHDBcs&t=2670
At the hearing, DSS officials said the average time from invoice submission to payment across DHS and HRA was 31 days as of March 2026. Source: https://youtu.be/daUwunHDBcs&t=2670
DSS staff clarified that the 31-day average includes back-and-forth communications when invoices have questions. Source: https://youtu.be/daUwunHDBcs&t=2670
**Department of Homeless Services (DHS)**
– Role or jurisdiction: City agency overseeing shelters and contracted homeless services.
– Action taken or responsibility: Reported on-time payment percentage and described outreach to providers and vendor coordination.
– Relevant numbers or dates: On-time payment rate 68%; most delays within 30 days; none beyond 365 days (reported June 4, 2026). Source: https://youtu.be/daUwunHDBcs&t=2818
DHS officials acknowledged Passport system transition issues and described proactive monitoring, provider outreach, and regular meetings with Mox to resolve payment problems. Source: https://youtu.be/daUwunHDBcs&t=2745
DHS told the Council its on-time payment percentage was 68% and said delayed cases “are mostly within the first month.” Source: https://youtu.be/daUwunHDBcs&t=2818
**Human Resources Administration (HRA)**
– Role or jurisdiction: City agency administering cash assistance, SNAP, and other benefits; contracts with nonprofits for services.
– Action taken or responsibility: Reported on-time payment percentage and identified groups of delayed invoices.
– Relevant numbers or dates: On-time payment rate 41%; ~14% of delays within 30 days; ~26% of delayed group between 181–365 days (reported June 4, 2026). Source: https://youtu.be/daUwunHDBcs&t=2818
HRA officials described streamlining steps for legal services contracts and said turnover in the unit has stabilized. Source: https://youtu.be/daUwunHDBcs&t=2986
HRA and DHS told the Council they could supply more granular counts of affected contracts and providers on follow-up; those counts were not available at the hearing. Source: https://youtu.be/daUwunHDBcs&t=2818
The Council asked whether Passport or procurement changes caused major delays. DSS officials said the citywide Passport migration produced “snags” when submissions and invoicing processes changed. DSS described a “very proactive approach” of monitoring Passport, outreach to providers, and resolving payment issues. Source: https://youtu.be/daUwunHDBcs&t=2745
When pressed for a concrete timeline to clear vendor backlogs and ensure timely reimbursements, agency witnesses described ongoing monitoring, weekly coordination with vendor partners, and operational fixes but did not give a single, agency-wide clearance timeline at the hearing. Source: https://youtu.be/daUwunHDBcs&t=2818, https://youtu.be/daUwunHDBcs&t=2745
In earlier coverage and prior hearings (external to the June 4, 2026 hearing), City officials and administration partners described the Passport migration as moving large contract and budget volumes into a new platform and issued directives and initiatives intended to clear invoice and retroactive contract backlogs. That earlier reporting showed the administration convening regular nonprofit-focused meetings and issuing partial payment guidance, but those prior materials did not substitute for the specific, up-to-date counts or timelines requested at the June 4 hearing. (External to this meeting.) Source: https://youtu.be/GxRjyI7X7-g&t=1016, https://youtu.be/GxRjyI7X7-g&t=5141
Council members and nonprofit witnesses at prior hearings testified that delayed contracting actions and late payments have forced some nonprofits to borrow or scramble to meet payroll, and they urged binding timelines, better staffing, and charter or legislative changes to enforce prompt payment. At the June 4 hearing, Council members pressed DSS for numbers and timelines; agencies answered with rates, process descriptions, and promises of follow-up data. Source: https://youtu.be/daUwunHDBcs&t=91, https://youtu.be/daUwunHDBcs&t=2818
The administration’s next steps at the time of the June 4 hearing included continued Passport monitoring, provider outreach, and coordination with vendor partner Mox; agencies committed to provide additional contract and provider counts on follow-up. The hearing did not produce a one-line, agency-wide deadline to clear vendor backlogs. Source: https://youtu.be/daUwunHDBcs&t=2745, https://youtu.be/daUwunHDBcs&t=2818
If you want, I can:
– Request the specific counts of contracts and total dollars delayed that agencies promised to provide; or
– Produce a follow-up note once the Council posts the agencies’ promised data.
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