New York City spent $368 million on services for its unsheltered homeless population in fiscal year 2025, according to a New York State Comptroller report. That figure represents more than triple the amount spent in FY 2019, even as the unsheltered population comprises only about 3 percent of the city's total homeless population.
The comptroller's report found that state officials are struggling to track how these funds are being spent, raising questions about accountability and efficiency in the city's approach to homelessness. The unsheltered population—individuals not using the Department of Homeless Services shelter system—grew from 3,588 people in FY 2019 to 4,504 people in FY 2025, a 26 percent increase from pre-pandemic levels.
What the Right Is Saying
Conservative Republicans and fiscal hawks say the $368 million spending figure—without clear tracking mechanisms—exemplifies wasteful government spending. They argue that the state comptroller's findings reveal a lack of accountability that undermines effective policy.
GOP legislators have called for comprehensive audits and performance-based funding models. They argue that tripling spending while seeing a 26 percent increase in the unsheltered population demonstrates failed policy outcomes. Some have proposed redirecting funds to faith-based and community organizations with proven track records.
Fiscal conservatives have also pointed to the 3 percent figure as evidence that resources are disproportionately directed toward a small segment of the homeless population. They argue that better tracking is necessary before any additional spending is approved, and that the current approach lacks measurable goals.
What the Left Is Saying
Progressive Democrats and homelessness advocates argue that the increased spending reflects the severity of the crisis and that tracking challenges should be addressed through additional oversight resources, not funding cuts. They note that the unsheltered population represents the most vulnerable segment of those experiencing homelessness.
State Assembly members aligned with progressive priorities have called for more robust data systems while defending the overall spending increase. They argue that addressing root causes of homelessness—including housing affordability, mental health services, and addiction treatment—requires sustained investment regardless of tracking difficulties.
Advocates for the homeless have emphasized that the 3 percent figure represents real people living on streets and in public spaces, and that the complexity of providing services to this population justifies the spending. They have urged the state to improve its tracking systems rather than reduce funding.
What the Numbers Show
The data reveals a significant disconnect between spending and outcomes. NYC's unsheltered homeless population increased from 3,588 in FY 2019 to 4,504 in FY 2025—a 26 percent rise. Meanwhile, spending on this population more than tripled from approximately $120 million to $368 million over the same period.
The unsheltered population represents just 3 percent of the city's total homeless population, yet receives substantial funding. According to 2024 data, the vast majority of homeless New Yorkers are sheltered, with the Department of Homeless Services serving thousands through its shelter system.
Per-person spending calculations based on the available data suggest significant resource allocation toward unsheltered services, though precise cost-per-individual figures are difficult to determine due to tracking limitations identified in the comptroller's report.
The Bottom Line
The $368 million spending figure underscores New York City's continued commitment to addressing homelessness, but the state comptroller's tracking concerns highlight significant accountability gaps. Both progressive and conservative policymakers agree that better data systems are needed, though they differ on what this means for future funding.
Progressives argue that tracking improvements should accompany increased investment, while conservatives say the lack of transparency justifies pausing additional spending until systems are reformed. The 26 percent increase in unsheltered individuals despite tripling expenditures suggests the need for policy evaluation regardless of political perspective.
What to watch: Whether the state comptroller's office implements new tracking requirements, and how upcoming budget negotiations address both homelessness funding levels and accountability measures.