New YorkA 84162025-2026 Regular SessionHouse

Extends certain provisions relating to the sale, issuance and refund of bonds and notes of New York city

Sponsored By: Patrick Burke (Democratic)

Signed by Governor

CITIESWAYS AND MEANSRULESCITIES 1

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 3 benefits, 0 costs, 1 mixed.

New York City keeps broader borrowing options

The law extends New York City’s special bond and note marketing authority through June 30, 2026. State Comptroller approval and existing private-sale limits still apply. Through that date, the city can sell bonds privately to the Municipal Assistance Corporation or other approved buyers. Other buyers require the mayor’s and city comptroller’s consent and State Comptroller approval. The city also keeps financing authority for purposes with a useful life set by law, including repaying advances and replacing earlier debt.

New York City keeps interest-rate tools

New York City keeps authority to issue qualifying variable-rate bonds and notes through July 15, 2026. The city finance board must find that the borrowing serves the city’s interest. Rates must follow a set formula or procedure, and each bond or note must state a maximum rate. Total principal remains capped at 25% of the city’s statutory debt limit, with the law’s specified exclusions. The mayor and comptroller also keep their authority for interest-rate exchange agreements through July 15, 2026.

State pledge protects New York City bondholders

Agreements with holders or guarantors of covered debt issued before July 1, 2026 must include New York State’s protective pledge. The state promises not to substantially weaken protected city debt controls during a control period. These include financial-plan, contract, and borrowing reviews; debt-service funds; board membership; audits; and control-period rules. Benefited holders can enforce the pledge in court, and the state waives its sovereign-immunity defense. The pledge ends when the debt is paid, refunded, redeemed, legally discharged, or fully funded in a separate trust with irrevocable payment instructions.

City refinancing lowers payments, changes investor protections

Through June 30, 2026, New York City can exchange outstanding bonds for new bonds with lower average yearly debt payments. Under this option, the new interest rate does not have to be lower. Average yearly payments equal remaining principal and interest divided by the remaining years to maturity. The exchange requires a right to recall and redeem the bonds or their holders’ consent. For qualifying bonds issued after June 30, 1978 and before July 1, 2026, replacement bonds can change or omit specified promises unrelated to prompt payment.

Sponsors & Cosponsors

Sponsor

Patrick Burke
Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 196 • No: 9

Senate vote • 6/9/2025

FLOOR Vote

Yes: 62 • No: 0

House vote • 5/29/2025

Assembly floor vote

Yes: 134 • No: 9

Actions Timeline

SIGNED CHAP.147
6/18/2025House
DELIVERED TO GOVERNOR
6/18/2025House
RETURNED TO ASSEMBLY
6/9/2025Senate
PASSED SENATE
6/9/2025Senate
3RD READING CAL.1583
6/9/2025Senate
SUBSTITUTED FOR S8245
6/9/2025Senate
REFERRED TO CITIES 1
5/29/2025Senate
DELIVERED TO SENATE
5/29/2025House
PASSED ASSEMBLY
5/29/2025House
ORDERED TO THIRD READING RULES CAL.360
5/29/2025House
RULES REPORT CAL.360
5/29/2025House
REPORTED
5/29/2025House
REPORTED REFERRED TO RULES
5/27/2025House
REPORTED REFERRED TO WAYS AND MEANS
5/20/2025House
REFERRED TO CITIES
5/15/2025House

Bill Text

Original
5/15/2025
PDF

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