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NYC Daily · Monday, June 1, 2026

Worker Protection Funding Concerns, Mamdani Housing Plan Divides,…

By Farzad Khosravi · Sent Monday, June 1, 2026

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DEEP DIVE

Federal housing cuts could leave 7K formerly homeless New Yorkers at risk

The U.S. Department of Housing and Urban Development plans to overhaul the Continuum of Care program, the nation’s largest homeless assistance funding source, threatening housing for more than 7,000 formerly homeless New Yorkers. The new policy prioritizes transitional housing over long-term support, risking displacement of individuals like Daniatia Lincoln, who credits supportive housing with her recovery and stable family life. Advocates warn that cuts could slash $66 million and force thousands out of their homes and back into shelter.

Continuum of Care grants have been the backbone of New York City’s housing-first strategy, which emphasizes permanent housing and supportive services as the most effective means to combat chronic homelessness. Since its inception, the program has housed thousands with mental illness and substance abuse challenges. HUD’s shift echoes a broader Trump administration focus on transitional programs and threatens to unravel decades of bipartisan progress. Confusing guidance issued last year foreshadows this shift, alarming industry groups who see their blueprints turning into cuts.

The stakes are immense for vulnerable New Yorkers relying on stable housing to recover and reintegrate. Without funding, providers must close units, forcing residents into precarious living conditions or homelessness. For many, including Lincoln, the prospect jeopardizes family stability and health, risking a return to the shelter system or the city’s streets. The final policy announcement and subsequent funding decisions will determine whether New York can protect its most at-risk citizens or watch progress unravel.

(Source)

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