Overview
- Mamdani and City Council Speaker Julie Menin reached a handshake on the FY2027 budget late Tuesday that sets total spending at about $125.8 billion and clears the way for a final Council vote.
- The agreement commits $175 million in new voucher funding for FY2027 and baselines $125 million beginning in FY2028 for a new rental assistance program administered by the Department of Housing Preservation and Development.
- The administration agreed to drop its appeal of the 2023 CityFHEPS expansion once the Council passes implementing legislation that creates the narrower HPD program.
- The new program is substantially smaller than the Council’s 2023 expansion, is designed with eligibility limits and cost guards, and is estimated by a Council source to reach roughly 9,600 households (about 30,000 people).
- The compromise reflects fiscal concerns after CityFHEPS costs surged in recent years, removes a proposed NYPD headcount increase from the final deal, and leaves the Council to vote to finalize the budget and the implementing voucher bill.