Updated
Updated · POLITICO · Jun 30
Mamdani, City Council Stall on $124.7 Billion Budget as $500 Million CityFHEPS Fight Deepens
Updated
Updated · POLITICO · Jun 30

Mamdani, City Council Stall on $124.7 Billion Budget as $500 Million CityFHEPS Fight Deepens

3 articles · Updated · POLITICO · Jun 30

Summary

  • No fiscal 2027 budget deal had been reached by Friday morning, and council members said talks could slip past the June deadline into the weekend or early next week.
  • The holdup is CityFHEPS: progressive lawmakers want at least $500 million in new annual funding and for Mamdani to drop an Adams-era lawsuit blocking a broader voucher expansion.
  • Mamdani has instead cited a large inherited deficit and, in his $124.7 billion executive budget, proposed cutting $500 million from CityFHEPS through administrative savings.
  • The standoff is straining ties with his left flank, with Progressive Caucus members threatening no votes and Speaker Julie Menin joining a public push for a significant expansion.
  • For Mamdani, the budget fight risks capping a politically successful June with a visible break from campaign promises on housing and friction with key allies.

Insights

As housing voucher costs skyrocket, are cities trading a shelter crisis for an unsustainable budget crisis?
Can rent subsidies solve homelessness if they don't create a single new affordable home?