After promising to expand the City Fighting Homelessness and Eviction Prevention Supplement (CityFHEPS) program, Mamdani has backtracked. The City Council voted to expand the voucher program, which enables more people to qualify for the rental subsidies. It serves 65,000 households with a budget of $1.25 billion. Mayor Adams refused to implement it, and the City Council sued. Now the administration wants a settlement in the lawsuit instead of dropping it, as Mamdani had said he would. The move comes after Mamdani asked for the State to step in and help with the city’s costs. Comptroller Mark Levine said implementing the expanded CityFHEPS would increase the budget deficit to $20 billion. Mamdani said the settlement would be “a pursuit that looks to both prevent homelessness in our city while also delivering a budget that is not just responsible, but also sustainable,” but advocates are disappointed.