New York City’s $65M Transgender Shelter: A Misguided Use of Taxpayer Dollars?

New York City is funneling $65 million in taxpayer funds into “Ace’s Place,” a Long Island City, Queens shelter exclusively for homeless individuals identifying as transgender or gender non-conforming. Set to run through 2030, this first-of-its-kind facility—born from a 2021 settlement with a trans-identifying activist—prioritizes a small demographic while the city’s broader homeless population struggles in an underfunded, overstretched shelter system.

The NYC Department of Social Services and Destination Tomorrow touted Ace’s Place as a “landmark moment” for the city’s “legacy as a sanctuary” for LGBTQ individuals, claiming it’s a necessary response to “a sustained attack on Transgender rights nationwide.”

The 150-bed shelter offers not just housing but lavish perks: a culinary arts program and a full-time psychiatric nurse practitioner and other clinical staff providing “comprehensive mental health support” for issues like depression and anxiety. NYC Department of Social Services Commissioner Molly Wasow Park called it a way to “strengthen the safety net for transgender New Yorkers,” while Chanel Lopez, Deputy Director of LGBTQ+ Affairs for the New York State Executive Chamber, deemed it “historic” and “lifesaving.” 

Sean Ebony Coleman, CEO of Destination Tomorrow, justified the shelter’s exclusivity, arguing that transgender or gender non-conforming individuals face unique struggles in traditional shelters, such as being “misgendered” or lacking identity affirmation. “Can you imagine going into an environment and you’re asking for help and they’re constantly misgendering you and constantly telling you you’re not who you say you are?” she asked. “How do you learn in that environment? How do you thrive in that environment? It’s almost impossible.” 

But with 105,373 people in NYC’s shelter system as of June 2025, many question why taxpayer dollars are being directed to a boutique facility for a tiny fraction of the homeless population. It’s true that the perks are, in many ways, tied to the nonprofits that help manage specific shelters or donate extra funds. Some general shelters across NYC do receive aid from nonprofits, and Ace’s Place is being managed by Destination Tomorrow. However, a 2023 City Council mandate requires one mental health professional per 50 families in shelters, yet only three-quarters of family shelters comply, and most single-adult shelters offer no on-site counseling or psychiatric services at all.

Meanwhile, Ace’s Place boasts of having an entire clinical staff and a culinary arts program—a luxury rarely seen in general shelters, which focus on bare necessities like food, clothing, and beds. The U.S. Department of Housing and Urban Development’s 2024 report found that a total of 771,480 people were living in emergency shelters, transitional housing, or on the streets last year. Comparatively, only 2,561 people who identified as transgender experienced homelessness during that timeframe.

This disparity has raised concerns about fairness. Why should one group receive specialized services while the majority of homeless New Yorkers—many grappling with similar mental health challenges or joblessness—get shortchanged? Critics argue that the city’s focus on identity politics over practical solutions misallocates resources in a system already strained by rising homelessness. Ace’s Place, with its taxpayer-funded extras, risks fueling resentment among those who see it as preferential treatment for a politically favored group. As New York City pours millions into this trendsetting experiment, many taxpayers are left wondering: why not prioritize equitable care for all?

Critics of the shelter have addressed this exact concern. Republican NYC Minority Council Leader Joann Ariola, for example, told The New York Post, “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.” She stressed, “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.”

Some have even questioned the legality of this shelter, arguing it could be considered discriminatory. While not a NYC official, the prominent conservative social media account, Libs of TikTok, posted on X, “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???” In response, one user commented, “Spending $65 million on a shelter limited to LGBTQ groups is discrimination funded by taxpayers. Public money should serve EVERY homeless person, not bankroll an activist agenda.”

The debate is far from settled. With Ace’s Place having just opened, public discourse is heating up, and conversations about fairness, legality, and priorities are likely to intensify. As New York City embarks on this controversial experiment, critical questions remain unanswered and the path forward unclear.

Originally published by The Washington Stand. 

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