Ratcheting down a major dispute between City Hall and Albany, the state is agreeing to give the city's Health and Hospitals Corporation payments that Mayor Bill de Blasio claimed the state was withholding.

Late Friday, the Cuomo administration announced a pay schedule that includes $268 million in Medicaid reimbursements the city was seeking. 

But the state will withhold estimated payments for next year until January, when officials determine what the scope of federal cuts will be.

The state aid is matched by the city and distributed to public hospitals to reimburse them for providing care for uninsured.