Story perspectives

Mayor Proposes $125.8B Budget, Wealth Taxes Stalled and Social Spending

5/22/2026

Summary

Story summary

Mayor Zohran K. Mamdani presented a $125.8 billion city budget that raises taxes on wealthy earners and expands social programs.
The budget includes a $7 billion pension liability deferral, $1.5 billion welfare spending, $3.6 billion homeless services, $1.2 billion pre-K and daycare funding, and a $500 million surcharge on second homes valued at $5 million or more, which critics say delays a fiscal gap.
Governor Kathy Hochul has not approved the wealth taxes, citing political considerations.

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Story summary

Mayor Zohran K. Mamdani presented a $125.8 billion city budget that raises taxes on wealthy earners and expands social programs.
The budget includes a $7 billion pension liability deferral, $1.5 billion welfare spending, $3.6 billion homeless services, $1.2 billion pre-K and daycare funding, and a $500 million surcharge on second homes valued at $5 million or more, which critics say delays a fiscal gap.
Governor Kathy Hochul has not approved the wealth taxes, citing political considerations.