New York City Mayor Unveils Record $122B Budget

Proposal includes property tax hike, draining of rainy day fund amid fiscal challenges

Published on Feb. 19, 2026

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New York City Mayor Zohran Mamdani has unveiled a record-breaking $122 billion preliminary budget for fiscal year 2027, a more than $6 billion increase from the current year. The proposal includes a controversial property tax hike on New Yorkers and would drain the city's $10 billion rainy day fund down to near zero, raising concerns from critics about the fiscal impact.

Why it matters

Mayor Mamdani's first full spending plan since taking office sets up a potential budget battle with taxpayers, lawmakers, and financial watchdogs over the proposed property tax increase and use of city reserves. The budget moves come as New York grapples with a projected $5.4 billion deficit, with the mayor pushing for new taxes on the wealthy to address the fiscal imbalance.

The details

The $122 billion budget proposal marks a significant increase from the current fiscal year, with the mayor citing years of "fiscal mismanagement" that have left the city facing a $5.4 billion deficit. Sources say the plan would drain the city's $10 billion rainy day fund down to near zero, a move critics are calling "reckless." The mayor has also pushed for a new 2% income tax on New Yorkers earning more than $1 million annually, though the state governor has rejected that idea.

  • Mayor Mamdani is set to present the budget proposal on Tuesday, February 17, 2026.
  • Just one day before the budget reveal, Governor Kathy Hochul approved an additional $1.5 billion in state aid to help stabilize the city's finances.

The players

Zohran Mamdani

The mayor of New York City who is unveiling the record $122 billion preliminary budget.

Julie Menin

The New York City Council Speaker whose approval will be critical in budget negotiations.

Kathy Hochul

The Governor of New York who has rejected the mayor's proposal for a new income tax on high-earners.

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What they’re saying

“After years of fiscal mismanagement, we're staring at a $5.4 billion budget gap — and two paths. One: Albany can raise taxes on the ultra-wealthy and the most profitable corporations and address the fiscal imbalance between...”

— Zohran Kwame Mamdani, Mayor of New York City (Twitter)

What’s next

The mayor is expected to present the budget proposal to city officials, including City Council Speaker Julie Menin, whose approval will be critical in the upcoming budget negotiations.

The takeaway

Mayor Mamdani's record $122 billion budget proposal, which includes a controversial property tax hike and draining of city reserves, sets the stage for a potential budget battle with taxpayers, lawmakers, and financial watchdogs over the mayor's plans to address New York's fiscal challenges.