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

The New York City Housing Authority’s funding could be slashed in half due to federal belt tightening, officials warned — as local Democrats called the Trump administration’s budget cuts “reckless.”

Trump’s “skinny” or preliminary budget for the 2026 fiscal year looks to cut the Department of Housing and Urban Development’s (HUD) funding by roughly $33 billion, with $26.7 billion of those dollars specifically affecting public housing and housing voucher programs like NYCHA.

“If Trump’s reckless cuts go through, NYCHA residents will pay the price,” said City Council finance chair Justin Brannan (D-47) after a budget hearing on Wednesday.

The cuts, which would be an estimated 43-45% blow to the housing authority’s current ask of $80 billion, could dramatically exacerbate an already grim city affordable housing market, officials said.

The lack of funding would directly affect Section 9 housing, which is controlled solely by NYCHA with money from outside the city’s budget, according to a recent report by the city comptroller.

“Explain to me how gutting public housing for working New Yorkers makes any sense when billionaires and big corporations keep getting massive tax breaks they don’t even need,” Brannan said..

“As finance chair, I refuse to let Trump balance the budget on the backs of our most vulnerable neighbors. NYCHA families deserve better—and we’re gonna fight like hell to protect them,” he said.

Section 9 refers to housing facilities owned by the government, while Section 8 housing units are homes where residents receive vouchers based on their income to offset rent costs.

The Housing Preservation Department (HPD), which controls Section 8 housing, works closely with NYCHA to determine how many residents it can accept in each type of affordable housing based on need.

HUD — which oversees both NYCHA and the HPD — is given funding based on every unit of public housing available — but the “block grant” the Trump admin is proposing wouldn’t work that way, NYCHA said.

NYCHA’s Chief Financial Officer Annika Lescott-Martinez said a new model would mean one figure for all programs, with the state left to figure how to carve it up.

Federal funding currently accounts for almost 70% of NYCHA’s operating budget, which is largely used to support renovations and reconstruction of dangerous and aging buildings.

Mayor Eric Adam’s administration stressed how many types of NYC housing would be affected by the cuts.

“Federally funded housing programs — like public housing and Section 8 vouchers — are critical to the housing security of hundreds of thousands of New Yorkers, including formerly homeless veterans, people with severe mental illness, and other vulnerable populations,” said William Fowler, a spokesperson for Mayor Adams.

“These programs also support tens of thousands of homeowners and landlords, especially in the outer boroughs, helping them meet their monthly mortgage payments,” he added

The administration said it will closely monitor the federal proposals and advocate for the resources the city needs to ensure New Yorkers’ housing security.