Mamdani, Menin Finalize City Budget With Increased Housing Voucher Funding

Mayor Zohran Mamdani and New York City Council Speaker Julie Menin have had a rocky start, but one thing they do agree on is a balanced budget.

Mamdani and Menin on Tuesday approved a final city budget of $125.8 billion for fiscal year 2027, including $300 million in additional funding for the city’s housing voucher program, CityFHEPS, which bears similarities to Section 8. The news follows the release in May of the planned $124.7 billion executive budget for 2027.

The $300 million for housing vouchers will be spread out, however, with $175 million scheduled for the program in the 2027 fiscal year and $125 million in 2028.

The funding for CityFHEPS was the only sticking point in negotiations between the mayor and City Council, with lawmakers being the ones digging in their heels for better funding for the voucher program.

“Housing vouchers are a smart investment that save taxpayers money by preventing homelessness before it happens,” Menin said in a statement. “Keeping families in their homes means children can remain in their schools, parents can stay connected to work, and communities remain stable. This agreement delivers a humane and fiscally responsible path forward by expanding access to rental assistance, establishing cost controls, and ending years of litigation.”

Menin and Mamdani’s teams clinched the deal at the last minute, as the legal deadline for an approved budget came Tuesday morning.

Mamdani’s major accomplishment in drafting his first budget for the city came in closing a $10.5 billion deficit left by his predecessor, former Mayor Eric Adams, which was made possible with an $8 billion commitment by Gov. Kathy Hochul and state lawmakers over the next two years.

“Our administration inherited a budget crisis built on years of undercounting the true cost of running our city,” Mamdani said in a statement. “We made a different choice. We balanced this budget without resorting to austerity. We protected the services New Yorkers rely on, while restoring honesty to the city’s finances. We accelerated the affordability agenda by investing in housing, mental health services, parks, libraries, and students of all ages. This agreement proves that fiscal responsibility and public excellence can go hand in hand.”

Mark Hallum can be reached at mhallum@commercialobserver.com.