NYC opens first government-funded transgender homeless shelter amid criticism

New York City opened the nation’s first government-funded homeless shelter exclusively for transgender individuals — a move that’s drawing sharp criticism, with opponents calling it yet another example of “progressive political theater.”

The city is reportedly spending $63 million in taxpayer dollars to fund the project, which is set to operate through 2030, The Gothamist, a local news outlet, reported.

The shelter, called Ace’s Place, is located in the Bronx and offers 150 beds along with a suite of services including on-site psychiatric care, job training, GED prep, and even culinary arts programs. Funded by the Department of Social Services (DSS) and run in partnership with LGBTQ+ nonprofit Destination Tomorrow, the shelter is being hailed by city leaders as a “groundbreaking national first.”

“A landmark moment for NYC,” the Department of Homeless Services wrote on X. “We have opened the city’s first shelter specifically for homeless transgender and gender-nonconforming people.”

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City officials and nonprofit leaders celebrated the move as a milestone in LGBTQ+ rights, even as critics question the growing trend of identity-specific public programs.

“We couldn’t be prouder to make this historic announcement that strongly affirms our values and commitment to strengthening the safety net for transgender New Yorkers at a time when their rights are roundly under attack,” said DSS Commissioner Molly Wasow Park.

Supporters say the facility will provide a safe, tailored environment for transgender individuals often marginalized or victimized in traditional shelters. Officials added that the aim is to help individuals stabilize and transition into long-term housing and independence.

“New York City has long been a leader in advancing LGBTQ+ rights and protections, and we’re proud to continue that tradition with the opening of the nation’s first city-funded shelter dedicated to supporting transgender individuals,” said DHS administrator Joslyn Carter.

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A person sleeps on a park bench outside of Central Park, New York City, NY on Wednesday, September 20, 2023. The city is currently experiencing homelessness and crime. (Fox News Digital)

Sean Ebony Coleman, CEO of Destination Tomorrow, added that the shelter is “a declaration that transgender people will no longer be pushed to the margins.” Coleman emphasized that this initiative was “by the community, for the community.”

“Ace’s Place is a community-driven answer to systemic neglect, and it’s only the beginning,” Coleman said. 

However, critics argue that the project sidesteps the real crisis facing New York City.

NYC Council Minority Leader Joann Ariola, who has consistently advocated for hiring more DHS police officers and social workers to improve safety in shelters, opposing identity‑based segregation or symbolic policy gestures, criticized the new multimillion-dollar project.

“Every New Yorker should feel safe in our shelter system. But instead of fixing the system for everyone, the city is spending $63 million to build a separate facility based on gender identity,” minority council leader Joann Ariola told The New York Post.

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Green stickers indicate the row and place number of cots inside the dormitory tent during a media tour of a shelter New York City is setting up to house up to 1,000 migrants in the Queens borough of New York, Tuesday, Aug. 15, 2023. (AP Photo/Mary Altaffer, File)

“That money should’ve gone to hiring more [Department of Homeless Services] police officers and social workers to make all of our facilities safer.”

“Instead, we are just further segregating the homeless system and ignoring the very real problems in favor of progressive political theater,” she continued. 

Others online echoed that sentiment, questioning the legality and fairness of identity-based shelters.

“The shelter, called Ace’s Place, is built ONLY for transgender and “gender non-conforming individuals” because “trans rights are under attack” How is this legal???” Libs of TikTok wrote in a post on X. 

“This is a horribly discriminatory and unconstitutional use of tax dollars,” another user commented. “It’s being properly condemned as “progressive political theater.” 

Still, supporters argue the shelter sets a national precedent, with LGBTQ+ advocacy groups hailing it as a “blueprint for the future.” The facility will offer wraparound services ranging from mental health and medical care to yoga and job placement assistance, all tailored to the TGNC community.

“This historic milestone reflects what’s possible when Trans-led organizations are empowered to lead and design solutions for their own communities. Destination Tomorrow is once again meeting the moment — providing not just shelter, but critical care, services, and dignity,” said Kimberleigh Joy Smith, EVP of Policy and Advocacy, Callen-Lorde Community Health Center.

Fox News Digital reached out to NYC Council Minority Leader Ariola’s office, but did not immediately receive a response.

Stepheny Price is a writer for Fox News Digital and Fox Business. She covers topics including missing persons, homicides, national crime cases, illegal immigration, and more. Story tips and ideas can be sent to [email protected]