New York City Mayor Zohran Mamdani has abandoned his plan to raise property taxes for New Yorkers, a measure that was intended to reduce the deficit but was unpopular.
The decision to withdraw is expected to be included in the budget proposal for the fiscal year that begins July 1, 2026, Bloomberg reports.
Mamdani threatened to raise property taxes by nearly 10% as a way to pressure New York Governor Kathy Hokul for more funding.
However, many City Council members, including City Council President Julie Menin, had expressed their opposition to the plan. The council would have to approve any increase.
However, the budget proposal raised concerns among credit rating agencies, which changed their outlook on the city to negative, citing the city's long-term structural deficits. The mayor had also proposed tapping nearly $1 billion from the city's reserves, which are set aside for use in times of fiscal catastrophe, to help cover the deficit.
Mamdani has long warned about the city's financial situation and has called for higher taxes on the wealthy and corporations to bolster New York's budget, one of the few measures he can take without the approval of New York State.
