NYC Mayor Mamdani Unveils First Budget Plan to Address City's Financial Crisis

Mayor aims to tax the rich and change relationship with Albany to bridge $5.5 billion gap

Published on Feb. 18, 2026

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New York City Mayor Zohran Mamdani will be unveiling his first financial plan for the city, which faces a massive $7 billion budget shortfall. Mamdani's team has made it clear that working New Yorkers did not create this crisis and should not be the ones to pay for it, with the mayor deeply committed to bridging the gap by taxing the rich and changing the structural relationship between Albany and New York City.

Why it matters

New York City is facing its largest budget gap since the Great Recession, with the crisis stemming from a pattern of underbudgeting essential services under the previous administration. Mamdani's budget plan will be a crucial first step in addressing the city's financial woes and determining how the burden will be shared between the wealthy and working-class residents.

The details

Mayor Mamdani plans to unveil his financial plan for New York City, which faces a $7 billion budget shortfall that was lowered from $12 billion. Mamdani's team has stated that the mayor is deeply committed to bridging the remaining $5.5 billion gap by taxing the rich and changing the structural relationship between Albany and New York City. However, the mayor may face challenges in getting the tax approved, as New York Governor Kathy Hochul has repeatedly said no to it.

  • Mayor Mamdani will be unveiling his financial plan on February 17, 2026.

The players

Zohran Mamdani

The current mayor of New York City, who is working to address the city's financial crisis.

Kathy Hochul

The governor of New York, who has repeatedly said no to Mamdani's proposed tax on the rich.

Eric Adams

The former mayor of New York City, whose administration is partly blamed for the current budget crisis.

Andrew Cuomo

The former governor of New York, who is also partly blamed for the city's financial woes.

Joe Calvello

The press secretary for Mayor Mamdani.

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What they’re saying

“The city still has a $5.5 billion budget gap, and the mayor is deeply committed to bridging it by taxing the rich and changing the structural relationship between Albany and New York City.”

— Joe Calvello, Press Secretary for Mayor Mamdani (cbsnews.com)

“This crisis has a name and a chief architect. In the words of the Jackson 5, it's as easy as ABC. This is the Adams budget crisis. He systematically under-budgeted services that New Yorkers rely on every single day.”

— Zohran Mamdani, Mayor of New York City (cbsnews.com)

What’s next

The mayor's budget plan will be closely watched by city residents and state officials, as it will determine how the financial burden will be shared and whether Mamdani can secure the necessary support to implement his proposed solutions.

The takeaway

Mayor Mamdani's first budget plan will be a critical test of his ability to address New York City's longstanding financial challenges, with the outcome potentially shaping the city's trajectory for years to come. The mayor's commitment to taxing the rich and changing the relationship with Albany will be closely scrutinized, as he seeks to balance the needs of working-class residents and the city's wealthiest individuals.