New York City’s Department of Homeless Services (DHS) is withdrawing from a U.S. Department of Veterans Affairs program that helps fund shelter beds for homeless veterans, a move that will affect the Borden Avenue Veterans Residence in Long Island City, Queens.
The city is exiting the VA’s Grant and Per Diem program as of October 1. DHS says it applied for the grant but was offered a smaller award than in previous years, with a condition requiring compliance with Trump administration directives against what the city calls “gender ideology” — specifically, barring transgender veterans from seeking shelter in VA-funded beds.
“The agency did apply for the grant, but the U.S. Department of Veterans Affairs only awarded a small portion of the previous awards while requiring that the agency discriminate against certain veterans by excluding transgender veterans from seeking shelter in VA-funded beds,” a DHS spokesperson said. “As a right-to-shelter city, we decided it was in the best interest of the veterans we serve to ensure access to shelter for all veterans experiencing homelessness.”
The Borden Avenue Veterans Residence houses more than 200 veterans. Roughly 125 to 150 of those beds had been supported by about $4 million in annual VA funding through the Grant and Per Diem program.
The VA disputes the city’s framing. Press secretary Quinn Slaven said New York voluntarily withdrew after learning it would receive less money, and called the city’s discrimination claim “false.”
“VA has limited resources and distributes these awards based on past performance, demonstrated need and ability to provide high-quality service to veterans,” Slaven said. “With these factors in mind, VA evaluated the Borden Avenue facility and determined that it could not justify a larger award.”
City Councilmember Joann Ariola, a Queens Republican, criticized the decision to leave the program entirely.
“This should not be an either-or choice,” Ariola said. “We can make sure transgender veterans have a place to stay without walking away from millions of dollars that could help other veterans in need.”
According to figures from the U.S. Department of Housing and Urban Development, transgender veterans make up about 0.3 percent of the homeless veteran population nationally, or roughly 110 people on a given night.
The withdrawal takes effect as colder weather approaches, raising questions about how the city will maintain shelter capacity for veterans who had relied on the federally funded beds at Borden Avenue.
