The Cost of Cuts: The FY26 Federal Budget, Disinvestment and the Rising Risk of Family Homelessness in New York

The United States’ government is making significant changes to the nation’s social safety net via the
federal budgetary process, and low-income New Yorkers face the greatest risks. The recently enacted
“One Big Beautiful Bill Act” (OBBB), passed through the “reconciliation process,” President Trump’s
proposed Fiscal Year 2026 “skinny” budget, and the House of Representatives’ Transportation, Housing
and Urban Development (THUD) Appropriations Act, all pose a serious threat to housing stability and
homelessness prevention for low-income families—especially in high-cost-of-living states like New
York.