NYC budget crisis: Hochul meets with Ken Griffin over pied-à-terre tax
Gov. Hochul meets with Citadel CEO Ken Griffin about pied-à-terre tax
Griffin says the pied-à-terre tax is a "profound lack of judgement."
NEW YORK - New York Governor Kathy Hochul met Thursday with billionaire hedge fund CEO Ken Griffin as debate intensifies over a proposed tax targeting wealthy second-home owners, amid New York City’s ongoing budget challenges.
What we know:
Details of the meeting were not immediately released, but taxes were among the topics discussed.
Ken Griffin, chief executive officer of Citadel Advisors LLC, at the Norges Bank Investment Management annual investment conference in Oslo, Norway, on Tuesday, April 28, 2026. The largely index-tracking $2.2 trillion sovereign wealth fund reported a
Griffin, the founder of Citadel, entered the meeting expressing frustration over what he described as personal attacks from New York City Mayor Zoran Mamdani.
Mamdani ‘tax the rich’ commercial
The tensions stem in part from a recent video in which Mamdani highlighted Griffin’s $238 million Manhattan penthouse while promoting the proposed pied-à-terre tax.
What is a pied-à-terre tax?
The tax would apply to second homes in the city valued at more than $5 million and is aimed at generating revenue from high-value properties often left unoccupied.
Griffin, whose net worth is estimated at about $50 billion, criticized the mayor’s approach.
Hochul meets with Ken Griffin over new tax proposal
FOX 5 NY's political reporter Morgan McKay breaks it down.
"I think the willingness of the mayor of New York to make this a policy debate a personal attack just demonstrated a profound lack of judgment," Griffin said earlier this week, adding that his meeting with Hochul would focus on the future of his business in New York.
Brownstone apartments in Manhattan, New York City, United States of America on July 6th, 2024. (Photo by Beata Zawrzel/NurPhoto via Getty Images)
Citadel has threatened to withdraw from a planned $6 billion redevelopment project in Manhattan as concerns grow among some business leaders about the potential impact of new taxes.
The proposed tax is still being negotiated, and bill language has not yet been finalized. State lawmakers have said they hope to reach an agreement in the coming weeks.
How much would the pied-à-terre tax generate?
Residential luxury towers stand along nicknamed Billionaires Row, a stretch of 57th Street that holds the majority of Manhattan’s supertall luxury towers on May 16, 2022 in New York City. (Photo by Spencer Platt/Getty Images)
By the numbers:
Hochul’s administration estimates the tax could generate about $500 million annually. However, a recent report from the New York City comptroller’s office projects lower revenues, closer to $340 million.
Mamdani’s team pushed back on that estimate, saying it underscores the need to carefully craft the legislation to prevent property owners from avoiding the tax.
What's next:
The proposal comes as city and state officials grapple with budget pressures, with leaders weighing how to raise revenue while maintaining New York’s competitiveness for businesses and investment.
The Source: This report is based on information from Gov. Hochul.