Weak City Budget Deal for Anti-Corruption Agencies Shows Need for Guaranteed Funding

New York, NY (July 1, 2026) – Citizens Union today released the following statement from Executive Director Grace Rauh in response to the adopted New York City budget, which continues to underfund the City’s independent watchdog agencies responsible for rooting out corruption, waste, fraud, and conflicts of interest:

“We are disappointed the adopted budget continues to underfund the City’s watchdog agencies responsible for rooting out corruption, waste, fraud, and conflicts of interest, falling short of the mayor’s and City Council’s stated commitment to restoring trust in city government after the Adams administration.

“We know that well-funded watchdogs are a smart investment and do far more than clean up after misconduct. At their best, they prevent it. They identify waste before it grows and advise public servants before a mistake becomes a violation. They protect taxpayer dollars, public trust, and the basic integrity of city government.

“The Department of Investigation (DOI) has lost more than 100 employees over the past several years because of successive budget cuts and the mayor proposed cutting it further. This budget deal thankfully avoids those deeper cuts, but the agency is still significantly underfunded.

“Commissioner of Investigation Nadia Shihata, who warned the Council last month that further cuts would jeopardize the agency’s core functions, had asked for a modest, scaled-back $6 million budget restoration intended to stabilize operations. Instead, the budget deal restores just $2 million, leaving DOI with roughly the same budget it had six years ago, despite a 30 percent growth in the City’s overall budget.

“Separately, the budget includes $4 million for an outside contractor to complete a Council-mandated DOI report on 9/11 toxins.

“Underfunding anti-corruption agencies has been the subject of media scrutiny, warnings from good government groups, and criticism from council members, who convened special budget oversight hearings on the matter.

“This back-and-forth between independent watchdog agencies and the elected officials they oversee is precisely why their funding should not depend on the annual budget negotiation process. The Charter Revision Commission established by Mayor Zohran Mamdani, also known as the Commission on Government Efficiency, has an opportunity to fix this structural problem by proposing guaranteed minimum funding levels for the Department of Investigation and the Conflicts of Interest Board, ensuring they have the resources necessary to serve as truly independent watchdogs and save the city money along the way.”

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