Mamdani unveils budget plan as deficit looms: Will NYC property tax increase?
FULL: Mamdani unveils budget plan for NYC
New York City Mayor Zohran Mamdani unveils the city's preliminary budget.
NEW YORK - New York City Mayor Zohran Mamdani unveiled his first preliminary budget Tuesday afternoon, offering New Yorkers a look at how he intends to close the multibillion-dollar deficit.
Mamdani made the announcement at 1:30 p.m. earlier today, Feb. 17, from City Hall.
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Preliminary plan
What we know:
The mayor is currently proposing raising the city's property tax by 9.5% to close the current budget gap.
It has been over two decades since the last notable increase in New York City property taxes, FOX 5 NY's Morgan McKay reports.
"There is one tax the city can raise," Mamdani said during his announcement. "It is a broken property tax system. We do not want to do so."
NYC budget deficit
By law, the city’s budget must be balanced, meaning revenues must meet or exceed spending. But Mamdani faces a steep challenge: a projected $7 billion deficit over the next two fiscal years.
The backstory:
On Monday, New York Governor Kathy Hochul announced $1.5 billion in state funding to help plug the gap.
The aid, spread over two fiscal years, trims the shortfall — but still leaves roughly $5.5 billion to be closed.
The governor’s funding is not a blank check.
What does Hochul's budget package include?
New York Governor Kathy Hochul and New York City Mayor Zohran Mamdani address the crowd at an event announcing expansions for free and affordable childcare programs in New York City and across the state of New York, held at the Flatbush Branch YMCA i
According to Hochul, the package includes $300 million for youth programming, $60 million for public health initiatives and $500 million earmarked for "shared priorities" to be determined in future discussions with City Hall.
Political observers say the move signals a rare moment of coordination between Albany and City Hall.
"Many workers are used to fighting between the governor and the mayor," political analyst Chris Coffey says. "What you’re seeing now is a semi-coordinated non-fight to accomplish some of the goals that both the governor and the mayor have."
Hochul and Mamdani announce $1.5B in state budget relief
Hochul has increased state support for New York City including the latest commitment to expand universal child care in the city.
Understanding Hochul, Mamdani dynamic
Why you should care:
For Hochul, the infusion of cash may help blunt pressure from progressive activists pushing to "tax the rich" as she runs for reelection.
For Mamdani, it provides early financial backing for campaign promises and program priorities that most first-term mayors do not typically receive so quickly.
Still, the hardest decisions remain ahead.
Will Mamdani raise taxes?
Zohran Mamdani, mayor of New York, during a news conference at Gracie Mansion in New York, US, on Monday, Jan. 12, 2026. Mamdani held his first news conference from Gracie Mansion on Monday, after moving into the official mayoral residence with his w
Dig deeper:
Despite Mamdani’s renewed calls last week in Albany to raise taxes on the wealthiest New Yorkers, Hochul has resisted that approach. The mayor is also notably not expected to attend a "Tax the Rich" rally scheduled in Albany next week — a potential sign of political calibration as budget negotiations intensify.
Fiscal watchdogs are urging restraint.
Local perspective:
The president of the Citizens Budget Commission warned that raising taxes could risk driving away businesses and high-income earners who help fund essential services such as schools, policing and sanitation.
Instead, the group is calling on the administration to dig into agency spending and identify areas that are not improving New Yorkers’ lives.
Tuesday’s budget proposal will provide the first formal blueprint of how Mamdani plans to reconcile his progressive campaign platform with the fiscal realities of governing the nation’s largest city.
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Other news:
In other City Hall news, Mamdani appointed Christina Farrell as the city’s new emergency management commissioner. A 26-year veteran of the agency, Farrell most recently served as first deputy commissioner under Zach Iskell.
Her appointment places an experienced hand in charge of emergency planning, response and recovery — a critical role in a city vulnerable to everything from extreme weather to security threats.
All eyes now turn to City Hall, where Mamdani’s budget rollout will begin to define not just his spending priorities, but the tone of his relationship with Albany — and how he plans to navigate the financial and political crosscurrents ahead.
The Source: This report is based on information from Gov. Kathy Hochul and FOX 5 NY's Robert Moses.