New York seeks new local funding sources as flood protection costs soar

Facing unreliable federal support, New York City officials are pushing a new funding strategy to cover the $46.2 billion needed for flood resiliency projects.

Stephen Lee reports for Bloomberg.

In short:

• New York plans to create “shoreline protection districts” that would charge local property owners fees for maintenance of nearby flood barriers.
• The city may also seek partnerships with the insurance industry, which stands to lose heavily in future floods, but such collaboration has lagged so far.
• Officials are weighing a range of new taxes — including property, sales, and “sin” taxes — to spread the financial burden of storm protection more evenly.

Key quote:

“The insurers would seem to be a very logical partner in all of this work, because they stand to lose a lot of money.”

— Jamie Rubin, co-chair of the New York City Resiliency Finance Task Force

Why this matters:

As climate change fuels more extreme weather, coastal cities like New York face soaring costs to protect residents and infrastructure from floods, storm surges, and rising seas. But the Trump administration’s recent pause on billions in climate-related spending has left city and state officials scrambling. Without reliable federal support, long-term planning for resilience projects — like seawalls, green infrastructure, and upgraded drainage systems — becomes far more difficult, especially as the window to act narrows.

Local governments are now being forced to find their own funding solutions through bonds, taxes, or private partnerships. That patchwork approach raises concerns about equity and effectiveness, particularly for low-income neighborhoods already vulnerable to flooding and other climate impacts. With public health and economic stability on the line, cities are entering a kind of climate triage — doing what they can, where they can, while hoping the next storm doesn’t overwhelm the system.

Related: New York’s climate Superfund law makes fossil fuel companies pay for damage