Mayor Mamdani Addresses $12 Billion Deficit in Exclusive CNBC Interview

Vows to Raise Taxes on Wealthy, Renegotiate State Funding to Fix Fiscal Crisis

Jan. 29, 2026 at 4:31am

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In an exclusive interview on CNBC's Squawk Box, New York City Mayor Zohran Mamdani revealed that the previous administration left the city with a staggering $12 billion fiscal deficit - greater than the Great Recession. Mamdani outlined his plan to address the crisis, including raising taxes on the wealthiest New Yorkers, renegotiating the city's relationship with the state, and pursuing spending efficiencies.

Why it matters

The scale of the budget deficit poses a major challenge for the new administration, requiring tough choices and a willingness to take on powerful interests. Mamdani's approach of raising taxes on the wealthy while also seeking greater state funding and spending cuts could have significant implications for the city's economy, public services, and political dynamics.

The details

Mamdani said the previous administration had hidden the true extent of the fiscal crisis, underestimating the costs of programs and keeping some expenses off the books. To address the $12 billion shortfall, Mamdani plans to increase personal income taxes on New Yorkers making over $1 million per year by 2%, while also pushing the state to provide the city with a greater share of the revenue it generates. He also vowed to scrutinize city spending and eliminate wasteful programs, citing a half-million-dollar AI chatbot that is "basically unusable."

  • Mamdani is set to make a formal announcement about the budget deficit on January 29, 2026.
  • The judge in the case against Walker Reed Quinn will decide on Tuesday whether to allow him out on bail.

The players

Zohran Mamdani

The current mayor of New York City, who inherited a $12 billion budget deficit from the previous administration.

Andrew Ross Sorkin

The CNBC host conducting the exclusive interview with Mayor Mamdani.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee (Instagram)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.