Bessent told Fox Business that if Mamdani is elected mayor of NYC, the federal government would not bail out the city if necessary.
Released on September 24, 2025
U.S. Treasury Secretary Scott Bescent said the federal government would not bail out New York City in the event of a financial crisis if the city elects Democratic candidate Zoran Mamdani.
On Wednesday, Bescent reportedly said he was “dead” to the country’s most populous city, citing a phrase attributed to former President Geraldford in 1975, when the city faced close to bankruptcy.
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“It’s the same thing Gerald Ford said: ‘Drop Dead’,” Bescent said to New York-born anchor Maria Bartiromo, along with New York-based Fox Business Network and Maria.
Ford did not actually make that statement. It was born from the headlines of New York’s tabloids at the time.
Bessent added, “I assure you – and there’s not much in a sure life – that New York City will come to the federal government for relief if the Mamdani plan is implemented.”
The Treasury Secretary did not specify which elements of Mamdani’s platform could create economic risk. Mamdani, a 31-year-old democratic socialist, is currently leading by double-digit margins in 18 different polls for the mayoral elections up to November 4th.
An Al Jazeera analysis of Mamdani’s proposal found that the campaign includes detailed funding plans for widely popular initiatives, including a city-run grocery store pilot program, free city buses, and more. These plans will be funded by increasing taxes on New Yorkers, who raise corporate tax rates and earn 2% more than $1 million a year.
However, the city’s tax changes require approval from New York Gov. Kathy Hochul, who supported Mamdani last week against his former colleague Andrew Cuomo. Cuomo, who lost the Democratic primary to Mamdani, is running as independence.
Al Jazeera asked both the White House and the Treasury if the Relief Bureau’s positions differ if policies implemented by states, legislative leaders or other entities, including the White House itself, create financial needs. Neither could be commented.
Impact on Trump’s economic policy
US President Donald Trump’s economic policies are already linked to a slowdown in the US economy, including New York City. The labor market has cooled, with only 22,000 jobs increasing nationwide in August. The ADP’s private pay report shows just 54,000 jobs added to the private sector, adding nearly half of the number added in the previous month.
In the first half, New York City added fewer than 1,000 jobs compared to 66,000 in the same period last year. Just like city and state leadership positions, city and state tax rates remain the same. However, between 2024 and the first half of 2025, Donald Trump became the president of the United States and enacted substantial economic policy changes.
The Trump administration has previously targeted New York City with policy action. Earlier this year, the Department of Transport threatened to withhold federal funds for the city’s congestion pricing policy. The Department of Education threatened to withhold funding for New York City schools for the protection of transgender students. The White House also cut down funds allocated by Congress through FEMA, which was designed to help cities prevent terrorist attacks.
The Mamdani Campaign did not respond to Al Jazeera’s request for comment.
