Archive · 24 Sep 2025
Treasury: No NYC Bailout if Mamdani Implements Plans
The U.S. Treasury Secretary, Scott Bessent, said that New York City won't get a bailout from the federal government if the mayoral candidate, Zohran Mamdani, follows through with his plans.
Mamdani wants to freeze rent, offer free buses and childcare, and create city-owned grocery stores.
He plans to pay for these by raising taxes on businesses and wealthy New Yorkers.
Bessent believes these plans could cause financial problems for the city, similar to the situation in 1975 when the federal government refused to bail out New York.
Treasury Secretary Scott Bessent said the U.S. would not bail out NYC if Zohran Mamdani's plans are implemented.
Bessent cited plans including rent freezes, free city buses, city-owned grocery stores, and free childcare.
Mamdani proposes funding his plans by increasing corporate taxes and taxing high earners.
Bessent drew a parallel to 1975 when a bailout was refused to NYC.
Mamdani won his primary with 56% of the vote.
- Who
- U.S. Treasury Secretary Scott Bessent and mayoral candidate Zohran Mamdani.
- What
- Bessent stated the U.S. Treasury will not bail out New York City if Mamdani implements his proposed plans.
- When
- Bessent made the statement on Wednesday.
- Where
- New York City.
- Why
- Bessent believes Mamdani's plans could lead to financial trouble.
Mayoral Candidate
U.S. Treasury
Bailout stance
Mayoral Candidate
A future need of federal assistance for the city to maintain financial stability if plans go ahead.
U.S. Treasury
No bailout for NYC if plans of the mayoral candidate are implemented.
- Treasury Secretary
- Scott Bessent
- Mayoral Candidate
- Zohran Mamdani
- Mamdani's Plans
- Rent freezes, free city buses, city-owned grocery stores, free childcare
- Funding for Mamdani's Plans
- Increased corporate taxes, 2% tax on New Yorkers earning over $1 million
- Primary Election Date
- June 24
- Mamdani's Primary Vote Share
- 56%