NYC’s public housing funding could be slashed by half as local Dems call Trump admin ‘reckless’

The New York City Housing Authority (NYCHA) is facing potential budget cuts that could have a devastating impact on public housing and housing voucher programs in the city. The Trump administration’s preliminary budget for the 2026 fiscal year includes a proposed $33 billion cut to the Department of Housing and Urban Development (HUD), with $26.7 billion of that affecting programs like NYCHA.

City Council finance chair Justin Brannan has called the proposed cuts “reckless,” warning that NYCHA residents will bear the brunt of the consequences. The estimated 43-45% reduction in funding would significantly worsen the already dire affordable housing crisis in the city.

One of the programs that would be directly impacted by the cuts is Section 9 housing, which is solely controlled by NYCHA and relies on funding from outside sources. The lack of funding would also affect Section 8 housing, where residents receive vouchers based on their income to help with rent costs.

Brannan criticized the proposed cuts, questioning why public housing for working New Yorkers would be gutted while billionaires and corporations receive tax breaks. He vowed to fight against any budget cuts that would harm NYCHA residents.

NYCHA’s Chief Financial Officer Annika Lescott-Martinez explained that the new funding model proposed by the Trump administration would consolidate funding for all programs, leaving the state to allocate resources accordingly. Currently, federal funding accounts for nearly 70% of NYCHA’s operating budget, which is crucial for renovating and reconstructing aging buildings.

The Mayor Eric Adams administration emphasized the broad impact of the proposed cuts, stating that federally funded housing programs are essential for the housing security of hundreds of thousands of New Yorkers. These programs support vulnerable populations, including homeless veterans and those with severe mental illness, as well as homeowners and landlords in the outer boroughs.

The administration pledged to closely monitor the federal proposals and advocate for the resources needed to ensure housing security for all New Yorkers. The potential cuts to NYCHA underscore the importance of preserving affordable housing programs and protecting the most vulnerable residents in the city.