New York City has inaugurated the country’s first government-funded shelter dedicated solely to transgender people experiencing homelessness. This initiative has sparked controversy, with critics condemning it as “progressive political theater.”

According to The Gothamist, a local news outlet, the city is investing $63 million in taxpayer funds for the shelter, which is scheduled to operate until 2030.

Nestled in the Bronx, the shelter, named Ace’s Place, accommodates 150 beds and provides various services such as on-site psychiatric support, job training, GED preparation, and culinary arts programs. It is financed by the Department of Social Services (DSS) and managed in collaboration with LGBTQ+ nonprofit Destination Tomorrow. City leaders are touting the shelter as a pioneering national initiative.

“This marks a historic occasion for NYC,” stated the Department of Homeless Services on X. “We have launched the city’s first shelter specifically designed for homeless transgender and gender-nonconforming populations.”

“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 simply reinforcing divisions within the homeless system while overlooking significant issues, all for the sake of progressive political theater,” she added.

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 stepheny.price@fox.com