New York City, February 18, 2026 – In a bold move to address mounting fiscal pressures, New York City Mayor Zohran Mamdani today proposed a record-breaking $127 billion preliminary budget for fiscal year 2027, calling on state lawmakers to implement new taxes on high earners and corporations to avert painful cuts and tax increases for everyday residents.
The announcement, made during a press conference at City Hall, highlights a projected $5.4 billion budget gap that Mamdani attributes to ongoing economic challenges, including inflation and reduced federal aid in the post-pandemic period. To bridge this shortfall, the mayor urged Albany to approve measures taxing individuals earning over $1 million annually and profitable corporations, which he described as essential for equitable revenue generation.
“If the state steps up, we can protect our working families,” Mamdani stated. “But without that support, we’ll have no choice but to consider alternatives that place an undue burden on the middle and working classes.”
Should state assistance fall short, the proposal outlines drastic steps, including a 9.5% increase in property taxes expected to generate approximately $3.7 billion in revenue. Additional measures could involve dipping into the city’s rainy day reserve fund and the retiree health benefits trust fund—options Mamdani characterized as “regrettable” but necessary to maintain essential services such as education, public safety, and housing.
The plan has already drawn sharp criticism from opponents who accuse the mayor of backtracking on key campaign pledges. During his 2025 election bid, Mamdani vowed to tax the wealthiest 1% of New Yorkers and implement a rent freeze to ease the cost of living for tenants. “This budget threatens to do the opposite, hitting homeowners and renters alike through higher property taxes that landlords will inevitably pass on,” said one critic from a progressive advocacy group.
City Comptroller Brad Lander offered a mixed response, commending the administration for its transparency in releasing the preliminary budget early. However, he echoed concerns about the regressive impact of a broad property tax hike, noting that it could disproportionately affect lower-income neighborhoods. “We appreciate the mayor laying out the stark choices ahead, but we must prioritize progressive solutions that don’t exacerbate inequality,” Lander said in a statement.
This preliminary budget marks the start of a lengthy negotiation process, with public hearings scheduled over the coming months. City Council members will review and amend the proposal before a final executive budget is due on May 2, 2026. Analysts expect intense debates, particularly as the city grapples with rising costs in areas such as migrant support, subway maintenance, and climate resilience initiatives.
Mamdani’s office emphasized that the $127 billion figure represents a 5% increase over the current year’s budget, with allocations prioritizing public health, education equity, and green infrastructure. “This is about building a fairer New York,” the mayor added. “But we can’t do it alone—we need partners in the state capital.”
As the budget season heats up, all eyes will be on Governor Kathy Hochul and state legislators to see if they heed the call for new revenue streams or force the city into austerity measures. Residents and stakeholders are encouraged to participate in upcoming hearings to voice their opinions on the path forward.
He isn’t delivering on his lower housing/rental costs by raising property taxes. PROPERTY TAXES RAISES MORTGAGES AND RENT, AS THOSE WHO HAVE HOMES FOR RENT WILL COLLECT THEIR TAXES THROUGH THEIR RENTERS BY BEING FORCED TO RAOSE THE RENT! Democrats, whether Socialist like Mamdani, or progressive or old Democrat have and will ALWAYS RAISE TAXES TO SPEND YOUR MONEY ON WHAT THEY DESIRE!