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PUBLIC TESTIMONY
Testimony by Victoria Leahy, Director of Policy and Planning at Homeless Services United
2:00:41
·
3 min
Victoria Leahy, representing Homeless Services United, testified about the impact of federal funding cuts on homeless services in New York City. She highlighted the risks to vital housing programs and the challenges faced by service providers due to funding uncertainties and programmatic restrictions.
- Up to 22% of providers' operating budgets come from direct federal contracts, making them vulnerable to cuts
- Federal funding cuts are already impacting programs such as emergency food and shelter, rental assistance, and food services
- Providers are facing difficult decisions between accepting federal restrictions on services or risking program reductions and potential closure
- The city's chronic late payments exacerbate the financial challenges for providers, making timely federal payments crucial for keeping doors open
Victoria Leahy
2:00:41
Good afternoon.
2:00:42
My name is Victoria Leahy.
2:00:44
I am the director of policy and planning at Homeless Services United.
2:00:47
I'd like to thank chair Brandon and chair wrestler and the rest of the committee for the opportunity to testify today.
2:00:54
As we heard, there's a vital housing program that's going to be at risk, with these federal funding cuts.
2:01:00
We're projecting cuts to section eight, the complete ending of the emergency housing voucher program and cuts to TANF all which are central to funding the homeless, shelter system and homeless services here in New York City.
2:01:13
It's also crucial to remember that not just federal pass through dollars are at risk.
2:01:19
As we've heard today, many providers contract directly with the federal government.
2:01:22
Our members based off of a survey up to 22% of their operating budgets come from direct federal contracts.
2:01:32
The reported funding cuts and staff cuts not just to HUD, but other agencies will only cause further interruptions in their their ability to provide services.
2:01:42
Providers have mentioned how federal funding cuts are already impacting their programming.
2:01:45
We've seen cuts to the emergency food and shelter program, which have caused providers to either limit their rental assistance programs that keep families in their home or cut their food service programs.
2:01:57
And it's not just specific to HUD and FEMA.
2:01:59
We've seen this through the Department of Labor, through Medicaid, through the VA, and other agencies.
2:02:05
And so all of this together, members are having a really extremely difficult time amending their fiscal plans and trying to figure out which programming to keep and what to cut back.
2:02:13
What is also troubling is the programmatic implications that come now with contracting with the federal government.
2:02:19
As providers have seen with their continuum of care contracts and their ability to renew them, the federal government is adding programmatic implications into those contract renewals.
2:02:28
And so providers are now at a very troubling time where they're deciding to accept these federal restrictions on their ability to provide services or to cut that federal funding and decide whether or not they need to reduce their staff size, reduce their programming, or risk their ability to stay open altogether.
2:02:47
As HSU has mentioned before, providers are in a cash flow crisis due to chronic late payments.
2:02:53
There's a total lack of normalcy when it comes to city payments on their contracts for services provided.
2:02:59
Federal contracts have always been reportedly amongst our members the most consistent in paying providers on time.
2:03:05
While providers may wait months on end for their city payments, federal funds help cut their doors open.
2:03:11
Given the uncertainty of federal resources and these proposed cuts, it's all the more important right now that the city registers contracts in a timely manner and pays nonprofit homeless service providers for their services on time to not further threaten their insolvency.
2:03:25
We joined the many other nonprofit providers today in making the following recommendations.
2:03:30
Expedite all late contract payments to human service providers.
2:03:35
It is the most important thing that the city can do to keep these, homeless service providers open right now.
2:03:41
The city should work on a strategic plan to draw down federal funding that it's used to make to operate these contracts.
2:03:47
And lastly, the city and state must work in a comprehensive counter strategy to the anticipated mass cuts to federal funding, especially in the human service sector.
2:03:56
Thank you.