Mamdani reaches budget agreement omitting costly campaign promises
New York City Mayor Zohran Mamdani reached a handshake agreement with City Council Speaker Julie Menin regarding the $126 billion budget on Tuesday, hours before the city’s next fiscal year starts.
The socialist mayor cast the deal as a major step toward solving the city’s budget crisis, with the deficit having been expected to reach $12 billion over the next two years. However, the proposal doesn’t include some of his costly campaign promises.
Mamdani and Menin agreed to allocate $300 million over two years for an expanded housing voucher program at the Department of Housing Preservation and Development, with $175 million set aside for the upcoming fiscal year. Mamdani did not campaign on a specific dollar amount for the program last year, but he planned to implement a bill passed by the council that would have greatly expanded eligibility.
At least $1 billion would have been allocated toward that expansion, according to estimates reported by Politico. The $300 million amount that was agreed upon was also lower than what housing advocates wanted, which was at least $500 million.
After taking office, Mamdani scaled back his more ambitious proposals, such as fully expanded housing vouchers, once he was faced with the financial realities of managing the largest U.S. city.
The mayor has been unable to follow through on his promise for free bus service, although he is one step closer toward that goal. As part of the budget, an additional 340,000 low-income New Yorkers will be added to the city’s public transit discount program. The program gives beneficiaries 50% off subway and bus tickets.
The budget agreement does not include Menin’s proposal to enroll eligible New Yorkers in the transit discount program automatically.
Meanwhile, Mamdani managed to keep the New York Police Department’s headcount flat. This was one of his campaign promises, but he had backtracked on it in the sixth month of his tenure when he supported New York City Police Department Commissioner Jessica Tisch’s plan to add 580 officers to the police force.
By announcing Tuesday’s budget deal, he reneged on his support for Tisch’s proposal after drawing backlash from the Democratic Socialists of America, a key backer of the mayor. Mamdani and Tisch ultimately came to a compromise on the police issue.
Both Mamdani and Menin seemed pleased with the budget agreement in their respective statements.
“We protected the services New Yorkers rely on, while restoring honesty to the City’s finances,” Mamdani said. “We accelerated the affordability agenda by investing in housing, mental health services, parks, libraries and students of all ages. This agreement proves that fiscal responsibility and public excellence can go hand in hand.”
“This budget reflects what the Council has believed from the very beginning: New York City does not have to choose between fiscal responsibility and investing in our communities,” Menin said.
Gov. Kathy Hochul (D-NY) played a crucial role in stabilizing New York City’s project budget deficit by providing over $4 billion in state aid and savings over the next two years. It appears neither Mamdani nor Menin gave Hochul a shoutout during their joint press conference.
The council is expected to approve the budget in a vote before the midnight deadline.