NYC Mayor Zohran Mamdani Warns of $5.4 Billion Budget Gap, Calls for Tax Hikes on Wealthiest Residents
New York City Mayor Zohran Mamdani has warned that his city faces a looming fiscal crisis, citing a preliminary budget gap of $5.4 billion due to years of mismanagement.
In a statement released Tuesday on social media, Mamdani described two paths forward: Albany could raise taxes on New York’s wealthiest residents and largest corporations to address the fiscal imbalance between the city and state, or New York City would be forced—“as a last resort”—to “balance the budget on the backs of working people.”
Mamdani emphasized that higher taxes represent the preferred solution, calling it the “sustainable and fair” approach for resolving what he termed a “structural crisis.” He added: “New Yorkers voted for bold change and competent leadership. We will deliver both,” noting his intention to work with state lawmakers to “protect working New Yorkers.”
The comments come amid growing financial pressures on New York City, including rising costs tied to migrant services, expanding social programs, and increased labor expenses, while officials warn of potential future budget shortfalls and uncertain federal support.
Mamdani’s push for tax hikes has placed him at odds with Democratic Governor Kathy Hochul, who has repeatedly resisted broad statewide tax increases. Hochul argues that New York must remain economically competitive to avoid driving high earners and businesses out of the state.
