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NYC's $127B Budget Faces Downgrade Threat Amid Tax Hikes

3/14/2026

Summary

Story summary

S&P Global warned that New York City's proposed $127 billion budget could be downgraded if Mayor Zohran Mamdani continues to balance the books with savings.
S&P Global also cites a structural revenue and expenditure mismatch as a risk.
Moody's issued a similar warning about a potential downgrade.
Mamdani's budget includes a near 10% property tax increase and higher-earner tax proposals, which Governor Kathy Hochul has resisted as she nears re-election.

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Story summary

S&P Global warned that New York City's proposed $127 billion budget could be downgraded if Mayor Zohran Mamdani continues to balance the books with savings.
S&P Global also cites a structural revenue and expenditure mismatch as a risk.
Moody's issued a similar warning about a potential downgrade.
Mamdani's budget includes a near 10% property tax increase and higher-earner tax proposals, which Governor Kathy Hochul has resisted as she nears re-election.