Mamdani reverses campaign promise for rental assistance program—turns out it’s too expensive

As the mayor is confronting a steep fiscal situation in managing the city during his second month in office, Mamdani does not intend to back the growth of a $1 billion-plus initiative known as CityFHEPS, per the New York Times. The plan to initiate the expansion of the program was previously upheld in court after being proposed by the city council.

Mamdani, during his campaign, had promised to expand the voucher program, but in a news conference on Wednesday, he suggested that the expansion of the program is too costly as the city is facing a budget deficit over two years that is around $7 billion.

His administration is now negotiating with activists to settle a lawsuit that sought to force the expansion of the program. The move may stir tensions between himself and his base of support from those in the Democratic Socialists of America, the organization he is also a part of.

Spokesman for Mamdani Joe Calvello said that City Hall is “aiming to prevent homelessness while delivering a budget that is responsible and sustainable." However, left-wing city councilwoman Tiffany Caban brought into question Mamdani's reversal.

“We passed the bills at the size and scale that they were needed to address the crisis that we’re facing, and that is going to save us money in the long term,” Caban said. “Yes, it’s expensive. It’s also going to make our city safer and healthier.”

The program is one of the ways New York City has addressed its homeless issue in the past. Mamdani has also been recently criticized for not pushing the homeless off the street during a cold snap that took nearly two dozen lives.

CityFHEPS works similarly to the Section 8 housing voucher program. Those renting pay 30 percent of what they owe, and the city covers the rest. Mamdani's campaign website read during his run for mayor, “Zohran will drop lawsuits against CityFHEPs and ensure expansion proceeds as scheduled and per city law."

However, by moving to settle the lawsuit, Mamdani is signaling that he will not be expanding the program. Around 65,000 households use the voucher program.