NYC Ditches Federal Homeless Veterans Program, Citing Concern for Transgender Vets

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Mayor Zohran Mamdani’s administration is pulling out of a federal program meant to assist veterans transition out of homelessness, alleging the Trump administration would have required New York Metropolis to discriminate towards transgender vets searching for shelter to obtain the funding. 

However federal officers are denying that declare, and say the town walked away from this system after the veterans company notified the Mamdani administration the town would obtain much less cash than  it had previously.

The dimensions of the funding discrepancy was not instantly clear, however the metropolis will now not take part within the U.S. Division of Veterans Affairs’ Grant and Per Diem program as of Oct. 1, the beginning of the federal fiscal 12 months. The Borden Avenue Veterans Residence shelter in Lengthy Island Metropolis has benefited from this system for practically 20 years and was not on the listing of GPD grantees launched final week. The division introduced $318 million in these grants to tons of of organizations nationwide for three-year durations starting subsequent month.

In response to The Metropolis Reporter’s inquiries, the town Division of Homeless Providers confirmed it’s dropping out of this system — introducing uncertainty round future funding for the Borden Avenue shelter, which serves greater than 200 veterans by means of a mixture of federal and metropolis {dollars}.

“The company did apply for the grant, however the U.S. Division of Veterans Affairs solely awarded a small portion of the earlier awards whereas requiring that the company discriminate towards sure veterans by excluding transgender veterans from searching for shelter in VA-funded beds,” DHS spokesperson Neha Sharma mentioned in a press release late Tuesday. “For granted-to-shelter metropolis, we determined it was in the very best curiosity of the veterans we serve to make sure entry to shelter for all veterans experiencing homelessness.

Veterans Day parade goers hold a gian American flag while moving up Fifth Avenue in Manhattan,
Veterans Day parade goers transfer up Fifth Avenue in Manhattan, Nov. 11, 2025. Credit score: Alex Krales/THE CITY

“There was no disruption to crucial companies for veterans residing at this website, and the town is actively assessing and planning subsequent steps,” she added.

Town’s longstanding proper to shelter typically ensures a mattress for anybody who wants one. DHS didn’t straight reply particular follow-up questions, together with how the VA was purportedly requiring the division to discriminate towards trans vets and whether or not DHS raised any considerations about this with federal officers. 

Quinn Slaven, press secretary for the VA, mentioned in a press release that the town’s allegation “is fake.”

“VA has restricted assets and distributes these awards primarily based on previous efficiency, demonstrated want and talent to supply high-quality service to veterans,” he mentioned. “With these elements in thoughts, VA evaluated the Borden Avenue facility and decided that it couldn’t justify a bigger award.”

An Aug. 7 letter obtained by The Metropolis Reporter and signed by the performing government director of the VA’s Veterans Well being Administration mentioned the town’s grant would finish on Sept. 30, as DHS had “chosen to not pursue continuation of the grant.” In line with the VA, the town company relayed that intention after U.S. officers supplied a preliminary award quantity for the following grant interval.

The revelations comply with a cordial assembly between Mamdani and President Donald Trump at Gracie Mansion on Monday, after which the mayor mentioned that they had spoken about “learn how to enhance the lives of New Yorkers,” particularly relating to the town’s excessive residing prices — a key driver of native homelessness.

Lawmaker Calls for Solutions

Metropolis Councilmember Joann Ariola (R-Queens) despatched a letter Tuesday afternoon to DHS Commissioner Erin Dalton, demanding solutions concerning the company’s choice to give up the GPD program.

Councilmember Joann Ariola attends a full Council meeting,
Councilmember Joann Ariola (R-Queens) attends a full Council assembly, Oct. 10, 2025. Credit score: Ben Fractenberg/THE CITY

“Town has a accountability to pursue each affordable useful resource accessible to help our veterans,” Ariola wrote. “Federal funding alternatives shouldn’t be disregarded and not using a compelling, clear justification, and the burden shouldn’t fall on veterans who rely on these companies.”

Ariola’s workplace estimates the present quantity at round $4 million a 12 months for between 125 and 150 beds. It’s unclear whether or not the Borden Avenue shelter is the one metropolis shelter that presently advantages from the GPD program.

“This shouldn’t be an either-or selection,” Ariola advised The Metropolis Reporter in a press release Wednesday. “We are able to ensure that transgender veterans have a spot to remain with out strolling away from thousands and thousands of {dollars} that would assist different veterans in want.”

In her letter to Dalton, the councilmember requested a “detailed written response” inside two weeks about why the division was ditching this system, together with supporting documentation and whether or not DHS “intends to rethink its choice and pursue future federal grant alternatives.”

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