Mayor backs away from campaign pledge to expand CityFHEPS as program costs exceed 1.2 billion annually and budget crisis deepens
Housing Advocates Express Dismay as Mamdani Administration Pauses Rental Assistance Expansion
Housing rights organizations have expressed sharp disappointment as the Mamdani administration signals an intention to narrow rather than expand the city’s largest rental assistance program, reversing a central campaign promise and frustrating the community groups who mobilized aggressively to elect the socialist mayor. The decision forces stark conversations about the gap between electoral promises and governing reality, particularly around the $7 billion budget crisis inherited from previous administrations. The CityFHEPS program, which supplements rent for low-income New Yorkers at risk of eviction or homelessness, is now the city’s single largest housing expense, having grown from $25 million in its 2018 launch year to over $1.2 billion annually in 2026.
From Campaign Promise to Administrative Retreat
During his mayoral campaign, Mamdani criticized predecessor Eric Adams for resisting rental assistance expansion and even described legal opposition to program expansion as “a ridiculous waste of time during a housing crisis.” His campaign website explicitly committed that Zohran would “drop lawsuits against CityFHEPS and ensure expansion proceeds as scheduled and per city law.” The 2023 City Council legislation that triggered the campaign promises would have expanded the program to serve an additional 47,000 households, potentially increasing five-year costs by approximately $17 billion. That expansion legislation remains entangled in New York Court of Appeals litigation.
Understanding the Cost Spiral and Fiscal Trade-offs
The rental assistance program operates as a housing voucher system allowing participating households to contribute no more than 30 percent of income toward rent, with the city covering the remainder. For a family earning $25,000 annually, the city would subsidize approximately $17,500 in rent annually if a household’s housing costs exceeded 30 percent of income. As the program has expanded, it has absorbed an increasing share of the municipal budget. Citizens Budget Commission Vice President Ana Champeny described the cost trajectory as “growing at an unsustainable clip,” raising legitimate fiscal concerns. Administration officials note that a $7 billion budget shortfall makes new major commitments difficult without corresponding revenue sources or service reductions elsewhere.
Prevention Investment Versus Short-Term Savings
Housing advocates counter that preventing homelessness through rental assistance costs less than sheltering homeless populations. WIN, the city’s largest shelter operator, released analysis demonstrating that moving families from shelters into permanent housing using vouchers would save the city an estimated $635 million over five years in shelter operations costs. The comparison suggests that rental assistance expansion represents net savings if evaluated across the full housing system rather than budgeted narrowly. City Council Member Tiffany Caban, who sponsored the expansion legislation, expressed frustration with Mamdani’s policy shift. She emphasized that the Council passed expansion bills “at the size and scale that they were needed to address the crisis that we’re facing,” and argued upfront investment reduces long-term costs while providing immediate relief to housing-insecure New Yorkers.
Navigating Complex Governing Reality
Mamdani’s administration initiated negotiations with housing advocates, the Legal Aid Society, and Council members to explore potential compromise positions that might expand the program more modestly than the original legislation proposed. Administration spokesman Joe Calvello stated the city was “aiming to prevent homelessness while delivering a budget that is responsible and sustainable.” The language suggests possible compromise around a smaller expansion, but no formal proposal had been unveiled as of mid-February. For housing policy resources visit NYC Housing Preservation. Rental assistance information at NYC Social Services. Housing advocacy from Housing Action Coalition. Homelessness prevention analysis from Center Budget Policy Priorities.
