The city is extending the program, now running through September 30, 2021.
The Open Storefronts program assists existing ground-floor storefront businesses who want to use outdoor areas on a temporary basis.
Mayor Bill de Blasio made the announcement Tuesday during his briefing.
It allows storefront businesses to use a portion of their sidewalk to display merchandise, sell goods, complete transactions, and provide queuing areas.
The mayor announced the program will also allow businesses to sell pre-packaged food on sidewalks, and allow restaurants to use sidewalks for take-out orders.
Officials say the program is a part of an effort to make New York City the world's capital for healthy outdoor living and to advance the mayor's recovery agenda, which is centered on public health and social justice.