Politics & Government

The Government Shutdown Could Devastate NYC's Poor

Money for food stamps, school lunches, housing subsidies and other programs will run out if the shutdown drags on, the mayor said.

NEW YORK CITY HALL — The partial federal government shutdown could have devastating consequences for poor New Yorkers if it drags on through next month, Mayor Bill de Blasio warned Thursday.

The city would lose $500 million in direct federal support each month for food stamps, housing subsidies, school lunches and other programs if the government does not reopen by March 1 — a gap the city would be unable to fill, the mayor said.

The estimate came with a dire warning from de Blasio as the shutdown inched toward a fifth week: "Prepare for the worst."

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"We are now entering nothing less than a full-blown crisis that is about to have massive effects on the people of New York City, and it is a crisis with no end in sight," the Democratic mayor said at a news conference. "It's a crisis that will get worse and worse with each passing month."

The longest federal shutdown in U.S. history entered its 27th day Thursday amid a continued impasse between President Donald Trump and congressional leaders over funding for a southern border wall. Thousands of federal workers in New York have been furloughed or are working without pay because of the stalemate.

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Food Stamps At Risk

A range of social programs use federal money that the city would lose if the shutdown continues through February, according to city officials. Only about $100 million of the $500 million at stake flows directly through the city budget, said Budget Director Melanie Hartzog.

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It's uncertain when or whether the federal government might reimburse the city for any money it spends keeping programs afloat, according to city officials. The city is preparing to bolster its food pantries and take other steps to help those in need, de Blasio said, though a plan for doing so was not ready on Thursday.

"At the rate of loss we would sustain, at that rate of half a billion dollars a month, we would exhaust all of our reserves in a matter of months, and then New York City would be in a very perilous situation of our own," de Blasio said.

The bulk of the funds at stake, almost $230 million a month, go to the nearly 1.6 million New Yorkers who receive food stamps through the Supplemental Nutrition Assistance Program, or SNAP, City Hall said.

Recipients will be covered through next month but will not get any more checks starting March 1 if the government does not reopen, officials said.

"We’re literally watching as our federal government starts to starve its people," de Blasio said.

Some of February's food stamp funds will be distributed early, meaning many recipients will get an unusually large check in January, officials said.

Those funds will be sent out starting Thursday, officials said, but affected New Yorkers will have to squirrel it away to cover two months of food.

"March 1 is D-day for New Yorkers receiving food stamps, and we’re going to do everything we can to connect people to their benefits and to provide the supports that we can," Steven Banks, the city's social services commissioner, said.

Tenants' Fate Uncertain

The $131 million that two city agencies receive each month for Section 8 housing vouchers — which more than 280,000 low-income tenants use to pay their rent — will also dry up starting March 1, officials said.

The Department of Housing Preservation and Development and the New York City Housing Authority, which administer the program, pay Section 8 funds directly to landlords while tenants cover the rest of their rent.

It's uncertain how tenants will be affected if the money runs out, de Blasio said, adding that the impact will likely depend on the length of the shutdown.

"I think if landlords perceive it to be a short-term reality there’ll be some stability. I think if landlords perceive it to be a longer term reality, we’re going to be in for some real trouble," the mayor said. "We’re going to try to prevail upon landlords to keep things the way they are in the hopes that they can be made whole later."

The shutdown could also eventually leave the city without $43 million for school lunches that more than 1 million students depend on; and $26 million for the Women, Infants and Children nutrion program, City Hall said.

Mayor Backs Dems' Fight

Despite the looming crisis, de Blasio supported Democratic leaders in resisting Trump's demand to fund his wall. He urged U.S. Sen. Mitch McConnell, the Senate's Republican leader, to end the shutdown over the president's objections.

"He's having a tantrum, and I'm not going to dignify it. No one should dignify it," de Blasio said of Trump. "We should not be talking in terms of, the president puts out this demand and the entire American people and the entire Congress are supposed to jump because of one irrational man."

The city has launched a website for those affected by the shutdown at nyc.gov/federalshutdown.

(Lead image: Mayor Bill de Blasio discusses the potential impact of a continued federal government shutdown at City Hall on Thursday. Photo by Michael Appleton/Mayoral Photography Office)

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