A growing number of council members express concerns with a budget that fails to include a significant expansion of CityFHEPS

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NEW YORK — Today, the New York City Council’s Progressive Caucus, the Black, Latino, and Asian Caucus, and the Homes Can’t Wait Coalition held a press conference to reiterate the coalition’s demand to City Hall and Council leadership to deliver significant CityFHEPS expansion in the FY27 budget.

42,000 families have been evicted from their homes since July 2023, when the Council first overrode then Mayor Adams’ veto—and 25,000 of these evictions could have been prevented. More than 100,000 people are now sleeping in NYC’s shelter system each night, many of whom remain ineligible for CityFHEPS while the lawsuit drags on. The most marginalized New Yorkers need CityFHEPS to access stabilized housing and prevent eviction. 

As the budget deadline quickly approaches, Council Members continue to call on Mayor Mamdani to drop the CityFHEPS lawsuit and to work with Speaker Menin to include expansion funding in the FY27 Budget. A growing number of Council Members have expressed concerns about supporting a budget that fails to include a significant expansion of CityFHEPS.

“The Council has been ready, willing, and able to enter into a settlement that protects vulnerable New Yorkers under this critical program and also contains the cost. But the Administration has continued the litigation and is unwilling to provide sufficient funding for CityFHEPS in the budget. CityFHEPS helps families remain in stable housing and costs far less than it would to keep those same families in the shelter system. We must invest in proven solutions that prevent homelessness and make responsible use of taxpayer dollars, rather than prolonging costly litigation that only delays help for families who need it,” said NYC Council Speaker Julie Menin

“New Yorkers are losing their homes and languishing in shelters right now — and a City budget that fails to meaningfully expand access to CityFHEPS fails to meet the urgency of this crisis,” said NYC Council Member Pierina Sanchez, Chair of the Committee on Housing and Buildings and lead sponsor of Local Laws 101 and 102 of 2023. “I am grateful to Speaker Menin for holding the line on this priority and making clear that we cannot move forward with a budget that does not include significant resources for a CityFHEPS expansion.“

“Housing is the foundation that allows families to build stability, stay in their communities and access opportunity. In the communities I represent, too many renters and working families are one rent increase or unexpected emergency away from losing that stability. Expanding CityFHEPS is a critical step toward addressing that reality. It provides a proven pathway out of shelter and into permanent housing, which is both more humane and more cost effective than prolonged shelter stays. As we continue to confront the affordability crisis, we must invest in solutions that remove barriers to housing, strengthen neighborhoods and help New Yorkers remain rooted in the communities they call home. I am proud to stand with my Council colleagues in support of expanding access to CityFHEPS and I will continue fighting for policies that ensure more families can secure safe, stable, and permanent housing.” – NYC Council Deputy Speaker Dr. Nantasha Williams

“With the budget deadline upon us, we have an opportunity to keep thousands of New York families in their homes. For many, the critical support that CityFHEPS provides means the difference between stability and being in a shelter. We cannot continue to postpone action. A budget deal is incomplete without CityFHEPS funding. Speaker Menin and Council Member Sanchez have been tireless in their advocacy to protect working families through this budget process, and this mission cannot fail.” – NYC Council Majority Leader Shaun Abreu

“Our City has a moral responsibility to confront the longstanding homelessness crisis, and we remain committed to helping New Yorkers stay housed and preventing residents from falling into the cycle of homelessness and reliance on emergency shelters,” said NYC Council Member Lee, Chair of the Committee on Finance. “The City Council understands that preventing homelessness is not only more compassionate but also more cost-effective than repeatedly responding through emergency shelter and crisis interventions. As we move toward adoption of the FY27 budget, we will continue advocating for the expansion of this critical program.” 

“Behind every preventable eviction is a family whose life has been turned upside down, and we know that across New York City, 25,000 of those evictions could have been avoided,” said NYC Council Member Amanda Farías. “My office continues to work with partners to support residents facing non-payment filings, but local intervention alone cannot meet the scale of this crisis. We urge the administration to lift the current lawsuit so the City can focus on implementation. We must see CityFHEPS in the FY27 budget. Prioritizing the CityFHEPS expansion is how we move from managing displacement to preventing it.”

“CityFHEPS is one of the City’s most effective tools for helping families move from shelter into permanent housing, and the City needs to fully fund and implement the expansion the Council enacted. More New Yorkers will be able to secure stable housing while the City saves hundreds of millions of dollars by reducing costly shelter stays. We also need to fix the delays that prevent people from using their vouchers. My CityFHEPS legislative package— Intros 0098, 0099, 0100, and 0101 —streamlines inspections, requires timely decisions, improves transparency, and holds the City accountable for getting families into apartments faster. CityFHEPS works, but we have to make it work better. Families need housing now, and we should be doing everything possible to help them get there.” – NYC Council Member Gale A. Brewer.

“Housing is a basic human right. Expanding CityFHEPS means keeping families in their homes, preventing homelessness before it starts, and giving New Yorkers the stability they deserve. As we finalize this year’s budget, we must invest in solutions that put people first.” – NYC Council Member Althea Stevens

“Every month a child spends in a shelter is a month of disrupted learning, lost stability, and diminished opportunity,” said NYC Council Member Eric Dinowitz. “ As Chair of the Education Committee and a former teacher, I see how the cost of housing instability shows up in our classrooms every day. We need to cut the red tape and make this program accessible to New Yorkers.”

“Housing is a human right, and CityFHEPS is one of the most effective tools we have to keep New Yorkers housed and out of shelter. It costs us far more to leave families in shelter than to help them stay home. Expanding CityFHEPS is both the fiscally responsible choice and the moral one, and I’m proud to stand with our community in calling for full funding of this expansion.” – NYC Council Member Yusef Salam.

“CityFHEPS keeps families in their homes, and it costs the city far less than the shelter system. No one should have to enter a shelter just to qualify for help with rent. The Council passed this expansion because it works. It is time to fund it in the FY27 budget and stop the delays. Families and seniors in New York City cannot wait any longer.” — NYC Council Member Susan Zhuang.

“For far too many New Yorkers, the difference between stability and homelessness comes down to whether we act.  Keeping people in their homes stabilizes families and saves the city money,” said NYC Council Member Harvey Epstein. “Since 2023, tens of thousands of families have been evicted, many in situations that could have been prevented. Over 1,500 families in my district are currently being threatened with eviction. Expanding CityFHEPS is one of the most effective tools we have to prevent eviction, move people out of shelter. That means including the funding in this year’s budget and ending the legal delays that are keeping New Yorkers from the support they need. I am proud to stand with Council Member Pierina Sanchez, housing advocates, and my colleagues to reaffirm our commitment to including this critical funding in the FY27 budget.” 

“Our coalition of Council Members successfully made the expansion of CityFHEPS the law, and it remains a critical tool for keeping families in their communities. I urge the Mayor to drop the appeal and move quickly to fund and implement these long-overdue protections in the FY2027 budget. District 34 residents, and all New Yorkers, deserve a city that invests in stability and acts with urgency to prevent homelessness.” – NYC Council Member Jennifer Gutiérrez.

“CityFHEPS should be a bridge to stable housing, not another barrier for families already struggling to stay afloat. We know it is more effective and more cost-efficient to prevent homelessness than to respond after a family enters shelter. Our focus should be on making CityFHEPS work better, faster, and for everyone it was intended to serve. That’s how we build a housing system that is both compassionate and accountable.” – NYC Council Member Thomas-Henry.

“We must expand CityFHEPS this year. Our city is in the midst of a cost-of-living crisis that has left so many New Yorkers in unstable housing or in and out of our shelters. We have to start protecting people before they lose their homes and keeping them where they are safe to begin with. Now is not the time to take a step back on creating safety nets, and CityFHEPS expansions are just one tool for supporting our most vulnerable neighbor.” – NYC Council Member Alexa Avilés.

“Every preventable eviction is a policy failure. We cannot continue to stand by while thousands of New Yorkers lose their homes despite having a proven solution within reach. Fully implementing the CityFHEPS expansion is not just the right thing to do, it is a moral imperative. Housing is a human right, and government has a responsibility to prevent homelessness before it begins. Every day we delay, more families are pushed into crisis. The City must fully implement CityFHEPS now and ensure every New Yorker has the opportunity to remain safely and stably housed.” – NYC Council Member Carl Wilson.

“With more than 100,000 New Yorkers sleeping in shelters each night and tens of thousands of families facing eviction, we cannot afford to delay expanding CityFHEPS. This program is one of the most effective tools we have to prevent homelessness, keep families in their homes, and help people move into permanent housing. Mayor Mamdani promised New Yorkers a significant expansion of CityFHEPS, and that commitment must be reflected in this budget. Housing is a human right, and if we are serious about addressing the homelessness crisis, we must fully fund and expand CityFHEPS, now.” — NYC Council Member Shahana Hanif.

 “Championing affordability means ensuring that every New York family can have a roof over their heads,” said NYC Council Member Shekar Krishnan, District 25. “I’m proud to join Council Member Sanchez, Speaker Menin, and my Council colleagues in fighting to ensure the CityFHEPS program is saved, protected, and funded. CityFHEPS is a lifeline for struggling New Yorkers and our families; the City Council is steadfast in our commitment to not turn our backs on the New Yorkers who need our support the most.”

“Keeping families in their homes is one of the most effective ways to prevent homelessness and reduce pressure on our shelter system. The Council acted in 2023 to expand CityFHEPS because no New Yorker should have to enter the shelter system just to qualify for rental assistance. At a time when housing costs continue to rise, the Administration should stop delaying these reforms in court and work with the Council to fully implement and fund them. Investing in CityFHEPS is both fiscally responsible and the right thing to do for working families struggling to remain stably housed.” – NYC Council Member Selvena N. Brooks-Powers.

“It costs the City five times more to keep a family in a shelter than to keep them in their home. As mandated when passed back in 2023, we must make it possible to keep low-income New Yorkers housed during the housing crisis,” said NYC Council Member Julie Won. Expanding CityFHEPs, protecting the livelihoods of the over 145,000 New Yorkers, and an affordable New York, as the Mayor promised, is surely non-negotiable.”

“We cannot afford not to expand CityFHEPS in this year’s budget, morally or fiscally. Too many New Yorkers qualify for a housing voucher but still lose their homes because our system makes them enter the shelter system before they can access the support they need. That isn’t prevention. It’s failure. Expanding CityFHEPS would keep families housed instead of forcing them into an expensive shelter system that costs taxpayers far more than helping them stay in stable housing in the first place. No family should have to become homeless to receive assistance they already qualify for. This expansion fixes a broken system by preventing homelessness before it happens, protecting our most vulnerable neighbors while making a smarter investment of public dollars.” – NYC Council Member Elsie Encarnacion.

“Every New Yorker deserves to be treated with dignity and respect, especially when they are working to stay safely housed. Expanding CityFHEPS gives more families a path out of shelter and into stable housing, while helping people stay connected to the communities they already call home. Expanding it in this budget would bring that support to more New Yorkers who need it.” – NYC Council Member Ty Hankerson. 

“Every New Yorker deserves the dignity and stability of a safe place to call home. At a time where over 100,000 people are sleeping in our shelter system each night and far too many families are living one missed paycheck away from eviction, we cannot afford to keep delaying one of the City’s most important and imperative tool that prevents families from entering shelters. The courts have made it clear that the City should implement the CityFHEPS reforms enacted by the council in July of 2025. Yet, the Mayoral administration continues to legally challenge and delay funding that helps families stay housed. We have less than 5 days to include the necessary funding to fully implement and sustain CityFHEPS. This is an effective tool that has proven to help families stay housed and one of the City’s most effective tool to prevent homelessness, reduce shelter stays, and help working families remain in the communities they call home. I want to thank Council Member Pierina Sanchez for her continued steadfast leadership and unwavering advocacy in speaking out on the need of CityFHEPS in our city, communities, and families.” – NYC Council Member Shirley Aldebol. 

“Expanding CityFHEPS is the fastest way to get thousands of homeless New Yorkers into safe, dignified housing,” said NYC Council Member Sandy Nurse. “My colleagues and I have been clear that the Administration needs to drop its lawsuit and meaningfully invest in the program’s expansion, as the law requires. CityFHEPS is not a permanent solution to our housing crisis, but it is the only thing keeping tens of thousands of families out of homelessness. If budgets are moral documents, we cannot abandon thousands of more men, women, and children who could benefit from this housing security.”

“As we finalize this budget, we cannot afford to move backwards on the support systems that keep our most vulnerable neighbors housed. CityFHEPS is a vital program that protects our most vulnerable residents while the reducing the strain on public systems and community resources. Investing in stable housing is an investment in a stronger New York for everyone,” – NYC Council Member Justin E. Sanchez

“Thousands of low-income New Yorkers are still waiting for the relief the City Council enacted years ago,” said Robert Desir, Staff Attorney of the Civil Law Reform Unit at The Legal Aid Society. “Mayor Mamdani’s continued legal challenge to these hard-fought reforms leaves more families vulnerable to eviction and homelessness at a time when New Yorkers can least afford it. We are grateful to the Speaker, the Progressive Caucus, and the Black, Latino, and Asian Caucus for standing with us in defense of these critical protections and for their steadfast leadership in advancing policies that keep New Yorkers housed. CityFHEPS is already helping tens of thousands of households remain in their homes, and expanding the program is both the humane choice and a fiscally responsible investment in preventing homelessness before it begins.”

“Today, we call on Mayor Mamdani to keep his word and deliver on his commitment to expand CityFHEPS,” said Win President and CEO Christine C. Quinn. “As New York City faces a growing affordability crisis, this administration must act with urgency to break the cycle of homelessness and provide thousands of families with the stability of permanent housing they deserve. CityFHEPS is one of the most cost-effective solutions available to the city, and if the expansion had been properly implemented, the City could have saved over $1 billion while helping families move from shelter into permanent homes. We will not stand for a budget that does not include the expanded voucher program that provides relief to the New Yorkers who need it the most.”

“Housing in New York City is simply unaffordable for far too many people. This is why 100,000 people have to sleep in New York City shelters every night. CityFHEPS is the most important tool the City has to help people move out of shelters and into stable, permanent housing,” said Dave Giffen, Executive Director of the Coalition for the Homeless. “Mayor Mamdani must honor his commitment to resolve the ongoing litigation and expand CityFHEPS eligibility. Doing so will reduce the need to open more shelters in NYC, alleviate the current shelter capacity crisis, and—most importantly—give thousands of struggling New Yorkers the chance to be included in the Mayor’s affordability agenda.”

“A city budget that fails to expand CityFHEPS is a budget that fails our city’s most vulnerable New Yorkers: people who are stuck in shelter because they make just over the minimum wage; families who will lose their homes and be forced to enter the shelter system – low-income New Yorkers deserve access to safe, stable, affordable housing, and they deserve an administration that will prioritize their well-being in the city’s fiscal plan for the upcoming year,” said Amy Blumsack, Director of Organizing and Policy at Neighbors Together. “If the mayor’s ‘affordable for all’ goal is real, then this administration should allocate funds for CityFHEPS expansion in this year’s budget in order to keep families housed, stop the loss of affordable housing units, and allow people to access life-saving rental assistance to help them secure housing.”

“CityFHEPS is one of the most effective tools New York City has to prevent homelessness and help people move into permanent housing. As the City finalizes its FY27 budget, it should invest in solutions we already know work. Implementing the CityFHEPS expansion will help families avoid eviction, move people out of shelter more quickly, and reduce pressure on an already overburdened shelter system. Every day implementation is delayed, more New Yorkers remain in shelter longer than necessary or face eviction without the support that could keep them housed,” said Kristin Miller, Executive Director of Homeless Services United. “We urge Mayor Mamdani to fully fund and implement the CityFHEPS expansion. The smartest investment New York City can make is preventing homelessness before families lose their homes.”

“We stand in solidarity with all New Yorkers experiencing homelessness or at risk of imminent homelessness —communities who are failed by the current system that leaves too many behind. Expanding City FHEPS is not optional; it is essential for health, stability, and survival. At Bailey House & Housing Works, we know housing is healthcare,” said Andrew Coamey, Senior Vice-President of Housing Works and Executive Director of Bailey House. “We call on the City to end its opposition in court and fully implement the City Council’s expansion. Housing is a right, and our community cannot afford to wait.”

“For 3 long years, we have watched, and we have waited,” said Dr. Jeffrey Ginsburg, President and CEO of Volunteers of America-Greater New York (VOA-GNY).  “The City has the chance to do something historic with this budget by finally committing the necessary resources to ensure people experiencing or at risk of homelessness have access to housing. A $500 million investment to fund the implementation of the CityFHEPS laws would fulfill a long-delayed promise to faithfully follow the law and ensure that New Yorkers can afford their rent and escape homelessness.”

“Mr. Mayor Mamdani, you promised to expand the CityFHEPS program. I have a CityFHEPS voucher, and it helps. Rents are high, and people are struggling to keep a roof over their heads for either themselves or their families. You need to keep your promise not for just some but for all. Keeping people in shelter is expensive. Putting them in permanent homes is cheaper. You must drop the lawsuit and implement the CityFHEPS expansion NOW,” said Elizabeth Mackey, member of Safety Net Activists at the Urban Justice Center.

BACKGROUND:

Mayor Mamdani, while running for office, pledged to drop Mayor Adams’ lawsuit and implement the 2023 CityFHEPS expansion laws. Homeless New Yorkers were deeply disappointed in the Mayor’s reversal and abandonment of campaign promises when he filed an appeal on March 24th to the New York Court of Appeals, continuing the legal action and preventing the program’s expansion to those who need it most. The implementation of CityFHEPS expansion is a crucial tool in realizing Mayor Mamdani’s goal of a more affordable New York for working-class and low-income New Yorkers. 

The 2023 CityFHEPS reforms expanded the program to households at risk of eviction in the community, increased the income limit for homeless households, removed work requirements, and extended eligibility to homeless households in non-DHS shelters. 

VOCAL-NY, alongside coalition partners, organized to pass these reforms, overrode Mayor Adams’ veto, and supported the Council and the Legal Aid Society in their 2-year-long litigation for implementation. 

The Fiscal and Human Cost of Homelessness in NYC:

  • According to the Mayor’s Management Report and the latest NYC Housing and Vacancy Survey (HVS), it costs the City $8,106 per month to house a single family in a shelter, while the median citywide rent was $1,641 per month. It costs the City, on average, 5 times as much to keep people in shelters as to support them with permanent housing. 
  • In FY27 alone, NYC DSS is projected to spend $4.14 billion on shelter contracts for 86,037 individuals. By contrast, as of October 2025, CityFHEPS had served145,382 individuals at a cost of $1.2 billion—serving twice as many individuals at less than one third of the cost. 
  • Over 4,500 individuals were sleeping unsheltered on the streets and subways of New York City on the night of January 28, 2025.
  • Although one third of extremely low-income households live in rent-regulated housing, 73% are severely rent-burdened, making them vulnerable to unexpected events such as job loss or a family illness.
  • 150,000 DOE students live in shelter—and have 63% rate of chronic absenteeism, double the citywide rate. 
  • According to a recent report by Win, the largest provider of family shelter in New York, the city could have saved more than $1 billion in shelter costs if CityFHEPS expansion had been implemented in January 2024, as the laws intended. 

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