New York City Mayor said he would seek to raise $10 billion in new revenue to fund his economic agenda and reduce the city’s reliance on federal funding, warning that a future Trump administration could use federal aid as leverage over New York.
Zohran Mamdani is New York City’s first Muslim mayor, first South Asian mayor, first African-born mayor and youngest mayor in more than a century.
Mamdani made the remarks prior to his election during an interview on The Breakfast Club while discussing his proposal to make city buses free. He said the plan would cost about $700 million annually and could be financed through higher taxes on corporations and high-income residents.
“What I’ve proposed is that we raise $10 billion to pay for our entire economic agenda and start to Trump-proof our city because we know he’ll use federal funding as leverage over this city,” Mamdani said.
Asked by host DJ Envy whether fare-free buses could work, Mamdani cited a pilot program he sponsored as a state lawmaker that eliminated fares on one route in each borough. He said ridership increased by up to 38% and assaults on bus drivers declined by nearly 39%, with the largest gains among riders earning $28,000 a year or less.
Mamdani said the program had public safety and environmental benefits, adding that about 11% of new riders previously drove or used taxis, reducing the number of vehicles on city streets.
He said his broader revenue plan would include matching New York State’s top corporate tax rate to New Jersey’s and imposing a 2% tax increase on the top 1% of earners, defined as those making $1 million or more annually.
Zohran Mamdani: "What I've proposed is that we raise $10 billion to pay for our entire economic agenda and start to Trump proof our city… And we will do so in two key ways."pic.twitter.com/WkinqLKovb
— Defiant L’s (@DefiantLs) February 15, 2026
Those proposals were formally introduced in February during testimony before the New York State Senate’s 2026 budget hearing, according to Reuters. Mamdani said at the hearing that the city’s budget gap had narrowed from $12 billion to $7 billion through savings measures and revised revenue estimates, but warned that New York remained financially vulnerable.
“I believe the wealthiest individuals and most profitable corporations should contribute a little more so that everyone can live lives of dignity,” Mamdani told state lawmakers, adding that a two percent tax increase on high earners would resolve nearly half of the city’s budget deficit, according to Reuters.
The tax proposals require approval from New York Governor Kathy Hochul, who has opposed statewide tax increases. A spokesperson for Hochul did not immediately respond to a request for comment at the time of Mamdani’s testimony, Reuters reported.
Mamdani’s proposals come as his administration negotiates with the City Council and state officials over how to close a multi-billion-dollar budget shortfall while expanding services such as child care and public transit, according to the Washington Post. The newspaper reported that the mayor has framed the tax hikes as part of a broader effort to avoid service cuts while pursuing campaign promises on affordability and transit.
Mamdani in late January has now warned of “A fiscal crisis at the scale greater than the Great Recession” in his city:
🚨 BREAKING: NYC Mayor Zohran Mamdani warns the city is facing a fiscal crisis on the scale of the Great Recession.
— Brian Allen (@allenanalysis) January 28, 2026
His prescription: cut waste, find efficiencies and raise taxes on the wealthiest New Yorkers and the most profitable corporations.
The bill is coming. The… pic.twitter.com/rRwWcSbTP7
Mamdani, who campaigned on expanding transit access and public safety programs, has argued that raising revenue locally would allow the city to better withstand shifts in federal policy and funding priorities.
The Mamdani administration did not immediately respond to a request for additional details.
