New York, NY—The need for social services has increased exponentially during the COVID-19 pandemic but providers face the possibility of cutting back their services because the money that the city first promised late last year to pay for overhead costs is now being rescinded because the virus has pinched the city’s coffers.

The overhead costs, for items such as rent, water bills and staff wages, are known as indirect costs, which Mayor Bill de Blasio and Council Speaker Corey Johnson promised $54 million in December 2019 to fund. But then last month, because of the ongoing economic fallout due to COVID-19, the Mayor notified nonprofit leaders that funding for indirect costs would be cut by $20 million, down to $34 million.

Councilman Ben Kallos and the Human Services Council co-sponsored a virtual rally earlier today to start building momentum to reverse the cuts when modifications to the Fiscal Year 2021 budget happen in November.