Key facts
- NYC Mayor Zohran Mamdani and Speaker Julie Menin reached an agreement on the city's $125.8 billion budget.
- The budget includes $300 million in additional funding for the City Fighting Homelessness and Eviction Prevention Supplement (CityFHEPS) program.
- The CityFHEPS program's cost has tripled in the last three years, from $499 million in FY 2023 to a projected $1.7 billion.
- The 2023 reforms changed voucher eligibility to 50% of the area median income and eased work requirements.
- Additional funding is allocated for affordable housing preservation, housing microgrants for survivors of violence, and the Homeowner Help Desk.
New York City Mayor Zohran Mamdani and City Council Speaker Julie Menin have reached an agreement on the city's $125.8 billion municipal budget, resolving a dispute that had delayed its finalization. The deal includes $300 million in additional funding for the City Fighting Homelessness and Eviction Prevention Supplement (CityFHEPS) program over fiscal years 2027 and 2028.
Menin, a moderate Democrat, had insisted on increased funding for the rental assistance program, which has been underfunded despite reforms in 2023. Mamdani, who had previously campaigned on expanding CityFHEPS but later proposed cost reductions, ultimately agreed to the additional funding.
The CityFHEPS program, the second-largest voucher program in the nation, has seen its costs triple in the last three years, from $499 million in FY 2023 to a projected $1.7 billion this year. The 2023 reforms expanded eligibility to 50% of the area median income and eased work and source-of-income requirements, changes that were initially vetoed by then-Mayor Eric Adams but later overridden by the City Council.
In addition to the CityFHEPS funding, the budget allocates increased resources for the preservation of affordable housing, housing microgrants for survivors of domestic and sexual violence, and technical assistance for homeowners at risk of displacement through the Homeowner Help Desk.