Resolution calling on the New York State Comptroller to raise the monetary threshold for expedited payments of abandoned property to $2,500.

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Res. No. 1108 ..Title Resolution calling on the New York State Comptroller to raise the monetary threshold for expedited payments of abandoned property to $2,500. ..Body By Council Members Menin and Brewer Whereas, New York State currently holds $20 billion in unclaimed funds, according to a 2024 assessment conducted by the Office of the New York State Comptroller; and Whereas, Compared to other states, New York State holds an especially large pool of unclaimed money because it is a large, economically active state with strict and comprehensive reporting laws, high financial complexity, and low public awareness of unclaimed funds; and Whereas, In an effort to dispose of unclaimed funds more expeditiously, in 2024 the New York State Legislature amended the Abandoned Property Law to authorize the New York State Comptroller to administer an expedited payment program for certain unclaimed property; and Whereas, Under the expedited payment program, the Comptroller may automatically payout unclaimed funds without first receiving a formal claim from the lawful recipient of the money; and Whereas, The 2024 amendment raised the threshold value on claims eligible for automatic payout to $250 and authorized the New York State Comptroller to determine an automatic payout value at their discretion beginning in 2026; and Whereas, Raising the threshold for unclaimed funds to $250 has simplified the process and sped up the return of money to rightful owners in New York State; and Whereas, Nevertheless, New York State lags behind peer states with similar programs; and Whereas, A 2018 academic study from the Journal of Public Budgeting, Accounting, & Financial Management found that states, like New York State, that had larger balances of unclaimed funds turned over lost money to claimants at a lower rate and amount; and Whereas, A recent survey conducted by New York Focus found that peer states, such as Illinois, that automatically issue larger unclaimed fund checks have returned more unclaimed money to their residents proportionally as compared to New York State; and Whereas, Such peer states have also seen nominal fraud in administering unclaimed fund checks; and Whereas, Raising the threshold for unclaimed funds to $2,500 in New York State would reduce the number of low-dollar value accounts tracked and maintained by New York State and allow for more outreach on higher value claims; and Whereas, More and greater transfers of unclaimed funds would reduce New York State's reliance on unclaimed funds to supplement the State budget and encourage more realistic and prudent budgeting; now, therefore, be it Resolved, That the Council of the City of New York calls on the New York State Comptroller to raise the monetary threshold for expedited payments of abandoned property to $2,500. BS LS 20218 8/19/2025

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