Scott Bessent warns that a federal bailout for New York City would be unlikely if Zohran Mamdani becomes mayor.
Published On 24 Sep 2025
Scott Bessent, the United States Treasury Secretary, has cautioned that the federal government would likely refuse to provide financial assistance to New York City should it face a fiscal emergency under the leadership of Democratic mayoral candidate Zohran Mamdani.
During an interview on Fox Business Network’s “Mornings with Maria,” Bessent referenced a notorious phrase often linked to former President Gerald Ford during New York City’s 1975 fiscal crisis, telling the city to essentially “drop dead.” Although Ford never uttered this exact phrase-it was a sensational headline from a New York tabloid-Bessent used it to emphasize the federal government’s probable stance.
“I am confident-though few things in life are certain-that if Mamdani’s proposed policies come into effect, New York City will seek a federal bailout,” Bessent stated, without detailing which specific policies might trigger such a financial strain.
Zohran Mamdani, a 31-year-old progressive Democrat with socialist leanings, currently holds a commanding lead in multiple polls ahead of the November 4 mayoral election. His platform includes ambitious programs such as universal childcare, city-operated grocery stores, and fare-free public buses. These initiatives are planned to be funded by increasing corporate taxes and imposing an additional 2% tax on residents earning over $1 million annually.
However, any modifications to the city’s tax framework would require approval from New York State Governor Kathy Hochul, who recently endorsed Mamdani, diverging from her previous ally Andrew Cuomo. Cuomo, having lost the Democratic primary to Mamdani, is now running as an independent candidate.
When questioned, neither the White House nor the Treasury Department clarified whether their bailout stance would shift if financial difficulties arose due to policies enacted by other government branches or officials.
Effects of Trump’s Economic Policies on NYC
Economic strategies implemented during President Donald Trump’s administration have been associated with a deceleration in the broader U.S. economy, including New York City. The labor market has notably cooled, with only 22,000 jobs added nationwide in August. The ADP report indicated a modest increase of 54,000 private-sector jobs, nearly half the previous month’s growth.
In the first half of 2025, New York City’s job growth was under 1,000, a stark contrast to the 66,000 jobs added during the same period in 2024. Despite stable city and state tax rates and leadership, the shift in federal economic policy following Trump’s election has had tangible impacts.
Moreover, the Trump administration has previously taken actions perceived as punitive toward New York City. Earlier this year, the Department of Transportation threatened to withhold federal funds over the city’s congestion pricing plan. Similarly, the Department of Education considered cutting funding related to protections for transgender students, and FEMA’s counterterrorism funding allocated by Congress was reduced.
The Mamdani campaign has not responded to requests for comment regarding these developments.
