Budget stalled over CityFHEPS funding dispute

By the Editorial Team · Saturday, June 27, 2026

Budget talks between New York City's mayor and City Council have stalled due to disagreements over funding for the CityFHEPS housing voucher program, with the budget deadline approaching and no agreement reached. The impasse highlights tensions over city spending priorities, as the mayor seeks program reforms amid rising costs while the council demands a $300 million annual increase to prevent homelessness.

Budget negotiations between New York City’s mayor and City Council have stalled amid disagreements over funding for CityFHEPS, the city’s housing voucher program for residents at risk of homelessness. The delay comes as the fiscal year’s budget deadline approaches on Tuesday, just days before the start of the new fiscal year on July 1.

Council Speaker Julie Menin, joined by fellow council members and former Speaker Christine Quinn, held a rally to demand increased funding for CityFHEPS. The program helps subsidize rent for New Yorkers who would otherwise face eviction or homelessness. Menin emphasized the council’s request for approximately $300 million annually to support the program, a figure the council has been advocating for in the budget discussions.

Councilmember Pierina Sanchez indicated that a budget agreement between the mayor’s office and City Council had not yet been reached, despite a previous expectation that a deal might be finalized by Friday. Councilmember Tiffany Caban criticized the city’s budget priorities, contrasting the proposed increase of 580 new police officers and a $70 million addition to the NYPD budget with the lack of adequate funding for housing support. “We could be putting those folks in housing,” Caban said, calling for a reassessment of spending priorities.

Mayor Brad Mamdani, who campaigned on expanding eligibility for CityFHEPS in line with City Council legislation passed in 2023, has since taken a more cautious stance. His administration contends that the growing costs of the voucher program — which City Comptroller Mark Levine estimates could reach $22 billion over five years — make expansion financially unsustainable given the city's budget constraints. The mayor’s office is pursuing reforms intended to stabilize the program’s finances over the long term.

Dora Pekec, a spokesperson for the mayor, reaffirmed the administration’s commitment to CityFHEPS, describing it as a “lifeline” for many exiting the shelter system. Pekec emphasized the need for “major reforms” to ensure the program’s viability. Meanwhile, the city is seeking a settlement in a lawsuit involving the program, filed by the City Council and the Legal Aid Society against the previous rapport with the Adams administration.

Sherif Soliman, director of the Mayor’s Office of Management and Budget, declined to comment on the budget talks or the CityFHEPS dispute, stating only that dialogue between the parties “is always ongoing.”

The funding impasse comes after a notable week for Mayor Mamdani. On Thursday, the Rent Guidelines Board approved a rent freeze, a key priority for the mayor. Earlier in the week, progressive and democratic socialist candidates backed by Mamdani triumphed in primary elections. Former Speaker Christine Quinn questioned the commitment of elected progressive officials to the city’s most vulnerable residents amid the budget standoff, underscoring ongoing tensions over housing policy and fiscal priorities.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.