Gov. Kathy Hochul is funneling another $1.5 billion in taxpayer money to New York City, helping bail out fresh-faced Mayor Zohran Mamdani — who’s launched a full-court press to convince the state to hike taxes on the rich.
The governor committed an extra $1 billion to this fiscal year and another $500 million to next fiscal year, she announced Monday.
The Democratic socialist mayor is facing a financial shortfall ahead of his first budget this week — a massive hurdle for the new administration that promised billion of dollars would be spent on new freebies.
Hizzoner had caused a premature panic last month when he sounded the alarm about a $12 billion budget hole left by the Adams administration through under-budgeting.
But the Mamdani administration admitted just two weeks later that the gap was least $5 billion smaller because officials failed to account for $7.2 billion in end-year tax revenue, mainly through Wall Street bonuses.
That didn’t stop Mamdani from continuing his tax-hike crusade, pushing Hochul and state lawmakers to raise taxes on people making $1 million by 2% in the Big Apple.
Hochul has repeatedly pushed back on the proposal — with insiders pointing to the potential political fallout with the governor up for election this year.
“A strong New York City means a stronger New York State. This investment protects services and puts the city on stable financial footing,” Hochul said. “New Yorkers expect the state and the city to work together, and I’m proud to partner with the Mayor to deliver for working families.”
Mamdani said he was “heartened” by the governor’s move.
“This is what it looks like to begin a new, productive, and fair relationship between City Hall and Albany – focused on delivering for working New Yorkers,” he added.
Mamdani is set to lay out his 2026 and 2027 fiscal plans on Tuesday. Both of which must be balanced budgets.
