FOR IMMEDIATE RELEASE
April 21, 2026
Contact:
Jake Oliver, jake@anatgerstein.com, 347-361-9983
Nonprofits, Advocates Rally in Albany to Urge Passage of Contracting Reform Bills to Stabilize New York’s Safety Net
Coalition calls on Legislature and Governor to act on S.9761/A.10741 and S.9855 to fix broken contracting system and ensure timely payment for essential services
For photos, click here (please credit: New York Legal Services Coalition)
ALBANY, NY — Nonprofit leaders, advocates, and service providers from across New York State gathered in Albany today for a lobby day organized by the New York Council of Nonprofits, New York Legal Services Coalition, Nonprofit New York, Human Services Council and Nonprofit Westchester, calling on state leaders to pass critical legislation to fix the state’s broken contracting system and ensure nonprofits are paid on time for the services they deliver.
Participants met with lawmakers to advocate for passage of S.9761 (Mayer) / A.10741 (Paulin) and S.9855 (Mayer) — newly introduced bills aimed at addressing chronic delays, lack of transparency, and structural inequities in the State’s contracting process. The legislation follows Governor Hochul’s veto of similar reforms at the end of last session, which had passed the Legislature unanimously, and reflects continued urgency from the nonprofit sector.
State Senator Shelley Mayer said, “New York’s nonprofits do tireless and important work throughout the state and we depend on these organizations to deliver essential support to thousands of our residents. I am proud to carry legislation, with Assemblymember Amy Paulin, that tackles the persistent delays in state payments to nonprofits and establishes greater accountability to ensure non-profits are paid on time for the services they provide and the staff that they employ. Delays in payment from New York don’t just affect organizations—they affect the people counting on them for care, support, and stability.”
"Nonprofits are the backbone of our communities," said Assemblywoman Amy Paulin. "They deliver essential services and help our most vulnerable residents. That is why I'm proud to join NYCON, Nonprofit Westchester, and advocates from across the state to fight for the reforms our nonprofit sector needs, including the passage of my bill A.10741 so that nonprofits are promptly paid for the work they do."
Advocates emphasized that the consequences of inaction are already being felt. Across the state, nonprofits are draining reserves, taking on debt, and in some cases cutting staff or services due to delayed payments.
Nonprofits are the backbone of New York’s social safety net, delivering essential services ranging from housing and legal assistance to mental health care and support for survivors of violence. Yet under the current system, organizations are routinely forced to wait months — or even more than a year — to be reimbursed for work already completed.
Nonprofits in Peril, a May 2025 report prepared by Human Services Council, the New York Council of Nonprofits, the New York Legal Services Coalition, Nonprofit New York, and Nonprofit Westchester found:
1 in 3 nonprofits with State contracts are owed money for services already provided
The State owes at least $650 million to nonprofits
65% of nonprofits are concerned about funding basic operations in 2025
Governor Hochul launched a broader push to cut red tape and improve how New Yorkers interact with government, including a statewide review of regulatory barriers and a new customer experience strategy. Advocates say these contracting reform bills align directly with that effort by streamlining processes, increasing transparency, and ensuring nonprofits can deliver services without unnecessary delays.
The bills championed during today’s lobby day would bring long-overdue reforms to the system, including:
S.9761/A.10741: Establish clear payment schedules, improve transparency, expand access to bridge financing, and prevent minor administrative issues from delaying payment
S.9855: Require upfront funding, including advance payments of at least 25% of contract value and timely payment within 30 days of execution
Together, these measures would help ensure nonprofits have the working capital needed to maintain operations, pay staff, and continue serving communities without interruption.
“Nonprofits are key partners in strengthening communities and local economies, but we cannot continue to absorb the cost of the State’s delays,” said David Kahn, Executive Director of The Adirondack Experience. “We’re still owed $300,000 from a 2018 state contract for a project that made our museum more accessible to visitors with mobility challenges. Because of those delays, we’ve had to take on debt and pay more than $100,000 in interest just to complete that work. This isn't sustainable, and it isn't fair.”
“More than ever, nonprofits across New York State need relief from the decades-long challenges that often come with New York State contracts,” said New York Council of Nonprofits CEO Megan Allen. “Thank you to Senator Mayer and Assemblymember Paulin for sponsoring these newest bills to provide relief – and thank you to the many nonprofits who joined us on this first-ever Statewide Nonprofit Lobby Day to educate legislators about the bills’ importance.”
“Civil legal services providers are on the frontlines of the very challenges New York’s leaders are focused on — keeping families in their homes, helping people access the benefits they need to stay afloat, and protecting immigrant New Yorkers navigating an increasingly complex and hostile system,” said Kristin Brown, President of the New York Legal Services Coalition Board and CEO of Empire Justice Center. “But when the State fails to pay providers on time, it undermines that work at its core. We applaud Senator Shelley Mayer and Assemblymember Amy Paulin for their leadership on this issue. If we are serious about affordability and supporting immigrant communities, we must also fix the contracting system that makes this work possible.”
“The Human Services Council is proud to stand in partnership with our fellow advocates and nonprofit leaders from across the state in demanding a system that supports our frontline nonprofit workers,” said Michelle Jackson, Executive Director of the Human Services Council. “Our report makes it clear that the status quo is unsustainable. Passing these bills would ensure that essential service delivery is never compromised by red tape and a broken payment system.”
“Nonprofit Lobby Day is a powerful reminder that the nonprofit sector delivers services and shapes public policy," said Jacqueline Ebanks, President and CEO of Nonprofit New York. “When nonprofits come together in Albany, we bring the voices of our communities to decision-makers and advocate for the investments and reforms our communities, and the sector, need to thrive.”
“Delayed payments and contracts that fall short of covering real costs are placing an unsustainable burden on nonprofits across New York State,” said Jan Fisher, Executive Director of Nonprofit Westchester. “These organizations are carrying out essential work on behalf of government every day, yet too often they are forced to operate without the timely payment and adequate funding needed to keep their doors open. This legislation will help fix a deeply and fundamentally flawed contracting system.”
Advocates are urging the Legislature and Governor to act swiftly this session to pass S.9761/A.10741 and S.9855 and deliver meaningful reform.
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