Overview
- City Council Speaker Julie Menin refused the ceremonial budget handshake and joined a rally pressing Mayor Zohran Mamdani for roughly $300 million a year to expand CityFHEPS, a move that left final budget talks stalled.
- On Friday, June 26 council members and advocates gathered at City Hall to demand additional funding and to say they may withhold votes if the budget does not include a CityFHEPS settlement.
- Mamdani has appealed earlier court rulings to the New York Court of Appeals and is pursuing program reforms while arguing the council lacks authority to mandate the full 2023 expansion laws.
- CityFHEPS has grown from about $25–26 million in 2019 to roughly $1.7–$1.8 billion this fiscal year and the city projects costs could continue rising toward 2030, creating major fiscal pressure on the mayor’s budget plans.
- If negotiators do not reach an agreement over the weekend the Council’s scheduled budget vote next week could be jeopardized, a risk that would threaten passage of the mayor’s first budget and prolong litigation and uncertainty for thousands of households relying on rental assistance.