Mayor Zohran Mamdani unveiled a $124.7 billion executive budget proposal that focuses on housing, education and child care while aiming to close a projected multibillion-dollar budget gap.

Speaking inside the Blue Room at City Hall, Mamdani said the proposed fiscal year 2027 budget would keep the city financially balanced despite what the administration described as a projected $12 billion budget hole at the beginning of the year.

Part of the proposal focuses on reducing costs associated with CityFHEPS, the city’s rental assistance program for New Yorkers experiencing homelessness. According to the administration, the program’s cost has tripled over the last three years.

The mayor said the city plans to reduce shelter costs, rely less on emergency hotels and help voucher holders increase their income levels. These are changes the administration says could save more than $500 million in fiscal year 2027.

“City FHEPS is a lifeline for thousands of New Yorkers leaving the shelter system and seeking stable housing,” Mamdani said.

The proposal drew criticism from WIN, the city’s largest provider of family shelters and supportive housing, which said the budget failed to follow through on the mayor’s campaign pledge to expand the CityFHEPS program.

Education also emerged as a major focus of the proposal. Mamdani announced plans to hire 1,000 additional teachers, a move the administration says would help reduce class sizes. The hiring initiative is expected to cost the city more than $120 million, according to the budget proposal.

The budget also includes funding for educational programs aimed at improving students reading and math skills.

Mamdani additionally highlighted investments in child care, announcing more than $2 million for a new child care program for government workers and $40 million toward contract rates for child care providers.

The mayor framed the proposal as part of a broader effort to address New York City’s affordability crisis.

“At the heart of our affordability crisis is the simple fact that too many people cannot afford to live in New York City,” Mamdani said.

The executive budget proposal also allocates more than $5.5 billion to the New York City Housing Authority over the next five years. The funding would be used to renovate and restore vacant apartments that city officials say would then be rented out.

The final budget is due in late June.