Policy
Federal cuts will be ‘catastrophic for low-income families,’ NYC shelter provider warns
In a new report, Win outlined how New York can prepare for the loss of billions of federal dollars – including by raising taxes on the rich.
New York City’s public housing stock, such as the Frederick Douglass Houses in Manhattan pictured here, stands to lose funding under President Donald Trump’s proposed fiscal year 2026 budget. John Smith/VIEWpress/Getty Images
New York must tax the rich to offset coming federal cuts, according to New York City’s largest homeless shelter provider. In a new report on the rising risk of family homelessness, the shelter nonprofit Win said raising taxes on the top 1% of earners is “morally and fiscally imperative” to insulate the state from federal safety net cuts that could push more people into homelessness. The nonprofit shared their report, which also recommends several budgetary actions, exclusively with City & State ahead of a rally and New York City Council oversight hearing Monday. Former City Council Speaker and Win CEO Christine Quinn is expected to testify.
The report analyzes the impacts of the “One Big Beautiful Bill Act,” signed into law on July 4 by President Donald Trump. The unpopular bill pairs cuts and new eligibility requirements for social programs with extended tax relief for the wealthy and increased border security spending. It’s projected to add $3.4 trillion to the national deficit in the next decade, The Wall Street Journal reported. The legislation jeopardizes $15.4 billion in funding for Medicaid and the Supplemental Nutrition Assistance Program in New York, according to Win. Up to 1.5 million people in the state could lose their health coverage, the group warned, and more than 281,000 could “immediately” lose their food assistance benefits.
The financial stress caused by SNAP and Medicaid cuts could put more families at risk of losing their homes, but Win is also sounding the alarm about Trump’s proposed fiscal year 2026 budget. The president’s proposal for the fiscal year starting Oct. 1 includes major cuts to the Department of Housing and Urban Development, federal rental assistance programs and public housing. The shelter provider estimates that New York would lose $4.5 billion in funding for federal housing programs that support 1 million New Yorkers under the plan.
“The combination of the (One Big Beautiful Bill Act) reconciliation law and the President’s FY26 budget proposal would be catastrophic for low-income families navigating high costs and housing insecurity,” the report reads. “Federal cuts to the social safety net will sharply increase homelessness in New York and across the country.”
Many state lawmakers support the idea of raising taxes on the rich, but Gov. Kathy Hochul has remained opposed.
In addition to raising state taxes on the wealthy, the shelter provider is recommending that the state and the city increase funding for multiple programs to fill the gap. The newly formed state-level Housing Access Voucher Program should be up and running by the March deadline, for example, and it should be infused with $250 million in fiscal year 2027, the group urges. At the city level, the group is calling for an increase in funding to the CityFHEPS rental assistance program of $263 million.
The Trump administration has touted its new policy of not taxing tips or overtime as an affordability measure included in the One Big Beautiful Bill Act, along with a new deduction for seniors.