Mamdani's Budget Hands Hochul a Political Bomb

Mayor's budget proposal rejects prudent path forward, raising property taxes instead of cutting spending

Published on Feb. 20, 2026

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New York City Mayor Zohran Mamdani's first preliminary budget proposal includes a $5.4 billion budget gap that he says can only be closed by either raising taxes on the wealthy and corporations or increasing property taxes by 9.5% - the city's largest hike in 45 years. Mamdani rejected reducing spending in the $127 billion budget, even as he projects a $6.6 billion gap next year and $20 billion in shortfalls through 2030. The budget also includes $2 billion in new health care obligations for city workers, handing Gov. Kathy Hochul a political headache in an election year.

Why it matters

Mamdani's budget proposal puts Hochul in a difficult position, as the mayor is essentially daring the governor to either allow tax hikes on the wealthy or take the blame for a major property tax increase that would impact working families and struggling commercial landlords. This sets up an epic state budget battle between the mayor and governor, with Hochul needing a strategy to guard against further erosion of the state's tax base that is heavily dependent on high-income earners in the city.

The details

Despite $1.5 billion in new state aid from Hochul, Mamdani says the city faces a $5.4 billion budget gap that can only be closed by raising taxes on the wealthy and corporations or increasing property taxes by 9.5% - the largest hike in 45 years. Mamdani flatly rejected reducing spending in the $127 billion budget, even as he projects a $6.6 billion gap next year and $20 billion in shortfalls through 2030. The budget also includes $2 billion in new health care obligations for city workers, a deal Mamdani inherited from the de Blasio administration.

  • Mamdani unveiled his first preliminary budget proposal on Tuesday, February 17, 2026.
  • Mamdani projects a $6.6 billion budget gap for the year after next, and total shortfalls of $20 billion from fiscal 2028 through fiscal 2030.

The players

Zohran Mamdani

The mayor of New York City who presented the preliminary budget proposal.

Kathy Hochul

The governor of New York who provided $1.5 billion in new state aid to the city, but is now facing a political headache from Mamdani's budget proposal.

Eric Adams

Mamdani's predecessor as mayor, who chronically sought to fudge or underbudget rising expenses.

Bill de Blasio

The former mayor who made a 2018 deal with city labor unions that is now costing $2 billion in new health care obligations.

Bruce Blakeman

The Republican-Conservative candidate running against Hochul for governor.

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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)

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.