NEW YORK CITY (PIX11) – The state government will help pull New York City out of a financial crisis with a $1.5 billion in support over two years, Gov. Kathy Hochul announced Monday.
The announcement comes just one day before Mayor Zohran Mamdani is expected to reveal his preliminary budget, which must address a massive shortfall. Mamdani initially estimated the budget gap was around $12 billion, but recently revised his projection to around $7 billion.
The massive sum includes funding for youth programming, sales tax receipts, public health and other priorities yet to be determined, Hochul and Mamdani said.
“A strong New York City means a stronger New York State. This investment protects services and puts the city on stable financial footing,” Hochul said.
Mamdani has made clear he wants a longer-term solution from Albany: taxes on wealthy New Yorkers and corporations. The tax increase is a no-go for Hochul.
The mayor is also focused on restructuring the relationship between Albany and New York City, something state legislators pressed Mamdani on during “tin cup day.” Mamdani has said the city is not getting its fair share of taxes, given it’s the economic engine of New York.
Emily Rahhal is a digital reporter who has covered New York City since 2023 after reporting in Los Angeles for years. She joined PIX11 in 2024. See more of her work here and follow her on Twitter here.
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