A New Year’s Reckoning: When Punishment Is Called Care—and Veterans Pay the Price

Timothy Pena • January 3, 2026

New York City Council Committee on Veterans Complicit

New York City - A new year is often described as a reset, a chance to recommit to values that matter. For New York City, that reset must include an honest accounting of how honorably discharged veterans are treated once they fall into homelessness, released from incarceration, or discharge from active service. What has emerged is not a system designed to heal or transition veterans, but one that disciplines, confines, and delays—while claiming the moral high ground of “stabilization.”


At the center of this failure is the NYC Council Committee on Veterans, which continued to meaningfully confront evidence that veterans are being punished for their homelessness, denied transitional services, and warehoused in violent, secluded environments under false pretenses.

Department of Oversight and Investigation Report


In 2024, the New York City Department of Investigation released a report documenting serious deficiencies in oversight, safety, and accountability within city-funded shelter operations overseen by the New York City Department of Homeless Services. Rather than sustained hearings or enforceable reforms, the Committee largely accepted agency explanations. For veterans inside the system, this meant continued isolation, exposure to violence, and denial of pathways out of homelessness.


The human cost is most visible in MICA shelters, where honorably discharged veterans are placed under the claim of mental health stabilization. In reality, many experience these placements as incarceration. Veterans are isolated, subjected to unsafe environments, denied veteran-specific services, and stripped of autonomy.


Compounding this harm are non-veteran caseworkers who withhold transitional services under a philosophy they call “tough love.” In practice, this approach punishes veterans for symptoms of trauma and homelessness, imposing sanctions and discipline instead of care.

Veterans Affairs and City Council Committee on Veterans Complicit


There is no meaningful alternative pathway for homeless veterans to access Veterans Affairs transitional services outside the Department of Homeless Services. DHS tells the Committee that prolonged confinement is necessary to stabilize mental health, creating a closed loop where veterans cannot leave shelters because the services required to exit are intentionally withheld.


This system is reinforced by financial incentives that reward prolonged instability. Contractors are paid for occupancy and length of stay, not successful transitions. Veterans remain trapped while federal funds continue to flow.


Most troubling is that Manhattan Veterans Affairs has increasingly become complicit. Women veterans and veterans without formal mental health diagnoses are discriminatorily excluded from transitional VA services, forcing veterans to accept stigmatizing labels or be denied help altogether.


Veterans Suffer Blame


Despite this reality, the Committee continues to blame veterans for failing to self-identify. Veterans do not self-identify because identification does not protect them—it exposes them to confinement, discrimination, and punishment.

This is not a technical failure. It is a moral one. Honorably discharged veterans fulfilled their obligations. New York City must fulfill its own and not continue to delay addressing this crisis as the former Committee on Veterans Chairman Robert Holden had done for the previous three years.


The new year must bring accountability: hearings with teeth, independent oversight, guaranteed access to VA services outside DHS control, funding reform, and real consequences when veterans are harmed.


Oversight is not optional. The incoming Committee on Veterans must do better to address veterans’ treatment and rectify this continued embarrassment that is the Veterans Affairs Grant and Per Diem transitional program.


To read more about the conditions facing Veterans in the Veterans Affairs Grant & Per Diem transitional program and the report to the New York City Council and Committee on Veterans, click on:

REPORT TO THE NEW YORK CITY COUNCIL

BORDEN AVENUE VETERANS TRANSITIONAL PROGRAM



Printable pdf.  NewYearReckoning_20260102


Timothy Pena is a service-connected disabled Navy veteran for PTSD and has written about his experiences with mental health, homelessness, and the judicial system. Suffering mental illness, he initially visited NYC to collaborate on a documentary for veteran suicide but decided to stay after realizing he would rather be homeless in NYC than dead in Phoenix. He has been writing stories and blogs about his journey from “homeless to homeness” in the NYC Dept of Homeless Services system and possible corruption within DHS and Veterans Affairs Grant & Per Diem Transitional Program.