The Daily New York

New York news, every day

News

'We'll Have Nowhere to Go': New Yorkers Fear What Budget Cuts Mean for Housing Help

A proposed City Council spending plan would slash millions from tenant services and shelter programs, leaving advocates and residents bracing for a crisis before winter.

By New York News Desk · Published 3 July 2026, 5:26 pm

3 min read

'We'll Have Nowhere to Go': New Yorkers Fear What Budget Cuts Mean for Housing Help
Photo: Photo by Andres Figueroa on Pexels

The City Council is heading into the July 4th recess without a finalized budget deal, and for tens of thousands of New Yorkers teetering on the edge of eviction or homelessness, the stalemate is not an abstraction. It is a countdown. Negotiations between Council Speaker Adrienne Adams and the Adams administration have stalled over a proposed $180 million reduction to the Department of Social Services, a cut that housing advocates say would gut front-line programs serving some of the city's most vulnerable residents.

The timing is brutal. New York is still absorbing the fiscal stress of hosting eight FIFA World Cup matches this summer, with venue and security costs running well above initial projections. The MTA's capital plan, locked in through 2029, continues to draw from the same general fund pool that social services compete for. And the city's right-to-counsel program — which guarantees free legal representation to tenants facing eviction — is already operating with a backlog that attorneys at organizations like Legal Aid Society describe as unmanageable.

Voices From the Waiting Lists

In East New York, a 58-year-old woman who has lived in her apartment on Pitkin Avenue for 22 years said she received an eviction notice in May after falling three months behind on rent. She contacted the city's HomeBase program, a community-based homelessness prevention service operated through nonprofit contractors, and was told the wait for a caseworker had stretched past six weeks. HomeBase, funded through the Department of Homeless Services, is among the programs facing a potential 30 percent funding reduction under the draft budget framework circulating among Council members this week.

In Mott Haven in the South Bronx, staff at BronxWorks — a social services organization that runs housing counseling out of offices on Third Avenue — say their caseload has doubled since 2023. The organization currently serves roughly 4,000 households annually across the Bronx. A cut of the scale being discussed, staff members say, would force them to close their intake appointments for new clients by September.

Similar warnings are coming from the West Side Federation for Senior and Supportive Housing, which operates buildings in Hell's Kitchen and the Upper West Side. The federation has told Council members directly that a reduction in city subsidy contracts could force it to reduce staffing at three supportive housing sites, affecting approximately 600 residents who rely on on-site social workers for everything from medication management to lease compliance.

The Numbers Behind the Fear

New York City's shelter population crossed 140,000 individuals in January 2026, the highest recorded figure in the city's history, according to Department of Homeless Services data. The average cost of a shelter stay runs roughly $380 per person per night in the city's family tier system — meaning prevention programs that keep a family housed for a few thousand dollars represent enormous savings against shelter costs. Housing court filings in Brooklyn and the Bronx are running at nearly 85,000 cases annually, a figure not seen since before the pandemic-era eviction moratorium expired in 2022.

Council Member Pierina Sanchez, who chairs the Housing and Buildings Committee, has pushed to protect the right-to-counsel budget line at its current $166 million level. She has also proposed redirecting a portion of the city's hotel tax revenue — which surged this summer due to World Cup tourism — toward emergency rental assistance. That proposal has not yet been formally incorporated into any draft budget document.

The Council must pass a final budget by July 14 under the city charter. Housing advocates are urging residents to contact their Council members directly before that date and to attend the next public hearing scheduled for July 8 at 250 Broadway in Lower Manhattan. Tenants who believe they are at immediate risk of eviction can call 311 to be connected to the Mayor's Office to Protect Tenants, or walk in to any of the city's 30 ActionNYC sites, which offer free legal screenings regardless of immigration status. For those already in housing court, the Tenant Help desk operates out of the Kings County Supreme Court building on Adams Street in Downtown Brooklyn every weekday morning starting at 9 a.m.

Topic:#News

How does this story make you feel?

Spread the word

See something wrong? Suggest a correction.

Have your say

Loading comments…

Sources

About this article

Published by The Daily New York

This article was produced by the The Daily New York editorial desk and covers news in New York. See our editorial standards for how we use AI.

The Daily New York brief

The day's New York news in a 2-minute read, every weekday morning. Free.

By subscribing you agree to receive emails from The Daily New York and accept our Privacy Policy. Unsubscribe anytime.

Daily brief

Enjoyed this? Wake up to New York news every morning.

Free, in your inbox before 7am. Weekdays.

By subscribing you agree to receive emails from The Daily New York and accept our Privacy Policy. Unsubscribe anytime.

More from The Daily New York

More in News

Enjoyed this story? Get tomorrow's briefing free.