Bessent told Fox Business that if Mamdani is elected as NYC mayor, federal gov\u2019t would not bail out the city if needed.<\/p>\n
Published On 24 Sep 202524 Sep 2025<\/p>\n
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United States Treasury Secretary Scott Bessent has said the federal government will not bail out New York City in the event of a financial crisis if the city elects its Democratic nominee, Zohran Mamdani.<\/p>\n
On Wednesday, Bessent reportedly told the nation\u2019s most populous city to \u201cdrop dead\u201d, citing a phrase he attributed to former President Gerald Ford in 1975, when the city faced near-bankruptcy.<\/p>\n
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\u201cIt will be the same thing that Gerald Ford said: \u2018Drop dead,\u2019\u201d Bessent told New York-born anchor Maria Bartiromo on Mornings with Maria on Fox Business Network, which is based in New York.<\/p>\n
Ford never actually made that statement. It originated from a New York tabloid headline at the time.<\/p>\n
Bessent added, \u201cI guarantee you \u2014 and there are not a lot of things in life that are sure \u2014 that New York City will be coming to the federal government for a bailout if the Mamdani plans are implemented.\u201d<\/p>\n
The treasury secretary did not specify which elements of Mamdani\u2019s platform could create financial risk. Mamdani, a 31-year-old Democratic socialist, currently leads by double-digit margins in 18 different polls for mayoral elections due November 4.<\/p>\n
An Al Jazeera\u00a0analysis<\/a> of Mamdani\u2019s proposals found that the campaign includes detailed funding plans for widely popular initiatives, including universal child care, a pilot programme for city-run grocery stores, and free city buses. These plans would be financed by raising the corporate tax rate and increasing taxes on New Yorkers earning more than $1m annually by 2 percent.<\/p>\n However, any changes to the city\u2019s tax structure require approval from New York State Governor Kathy Hochul, who last week endorsed Mamdani over her former colleague Andrew Cuomo. Cuomo, who lost the Democratic primary to Mamdani, is running as an independent.<\/p>\n Al Jazeera asked both the White House and the Department of the Treasury whether their position on a bailout would differ if a financial need arose due to policies implemented by other entities, including the state, congressional leaders, or the White House itself. Neither were available for comment.<\/p>\n Trump\u2019s economic policy impact<\/p>\n Economic policies of US President Donald Trump have already been linked to a slowdown<\/a> in the US economy, including for New York City. The labour market has cooled, with August adding only 22,000 jobs nationwide. The ADP private payroll report showed just 54,000 jobs added in the private sector, nearly half the number added the previous month.<\/p>\n In the first half of the year, New York City added fewer than 1,000 jobs compared with 66,000 during the same period last year. City and state tax rates remain unchanged, as do city and state leadership positions. However, between the first half of 2024 and 2025, Donald Trump became the president of the United States and instituted substantial economic policy changes.<\/p>\n