NYC school board rejects $1.65 million tech deal in early setback for Mamdani

New York City's school board voted down a $1.65 million technology contract advanced by Mayor Zohran Mamdani's administration, marking an early setback for the mayor's initiatives. The contract, which would allow the Education Department to continue using Oracle software supporting critical functions, fell four votes short of passage.

Oracle software supports HR help centers serving over 150,000 employees and an enrollment support center handling 1,000 calls daily. Losing access to the software could result in lost data and prevent families from accessing enrollment information online. After strong opposition to Oracle and its co-founder Larry Ellison, particularly over the company's investment in AI, the board could not secure the necessary votes.

Two mayoral appointees abstained, while three others did not attend the meeting. Board members expressed concerns about Oracle's environmental impact, data protection, and the risk of service disruption. The Education Department assured that the service would continue through September and did not confirm backup plans. This outcome suggests the board may not always follow the administration's proposals, as past administrations typically saw the board vote in line with the administration's tech plans.