There seems to be no assurance of a budget deal.
Mayor Zoran Mamdani’s attempts to swiftly finalize a proposed $124.7 billion budget with the City Council have hit a snag, largely due to a contentious housing voucher program.
The city faces a midnight deadline on Tuesday to pass the budget, but if they don’t meet it, the main consequence appears to be a bruised political image for Mamdani, who struggled to approve a spending plan during his first year in office.
“There’s a disconnect; the politicians seem out of touch with the budget,” one insider expressed.
At the heart of the disagreement is the proposed expansion of the city’s FHEPS housing vouchers.
Mamdani has been hesitant to commit funding, which could lead to significant expenses for the city over the long term.
City Council President Julie Menin and her supporters, including some on the left who align with Mamdani, are advocating for an expansion of the program, but with limitations on spending.
According to sources, the pro-voucher advocates held a rally on Sunday and circulated a wave of social media posts that apparently upset Mamdani, who tends to focus on online reactions.
“The CityFHEPS rental assistance program is essential for 65,000 of our most vulnerable New Yorkers, but it should help thousands more,” Menin tweeted.
“We gathered at City Hall today to urge the administration to fund the expansion of this program in the budget. New York families can’t wait.”
In 2023, City Council members are expected to vote on expanding CityFHEPS, which may end up costing over $10 billion in the first five years and could support up to 50,000 additional families.
Former Mayor Eric Adams contended that the expansion would exceed the projected costs, initially vetoed it, then had the veto overridden, and engaged in a legal fight.
The legal issue began when Mamdani, then a lawmaker, remarked on social media about the “ridiculous waste of time during the housing crisis.” He later re-engaged with the topic during his campaign, dropping the lawsuit and pledging to advance the voucher program.
However, after taking office, Mamdani’s perspective shifted sharply.
His new stance has frustrated many left-leaning allies, as he continues to battle against the City Council’s efforts to expand housing subsidies in court, perpetuating a struggle that began with his predecessor, Eric Adams.
This situation is still developing. Stay tuned for updates.
