NYC Comptroller’s November Report Reveals Economic Uncertainty Amid Political Transition

Federal Shutdown and Mayoral Transition Create Fiscal Headwinds for New York

Navigating Uncertainty in Changing Times

NYC Comptroller Brad Lander’s November 2025 economic outlook reveals a city facing significant uncertainty despite relatively stable economic conditions. The federal government’s record-long shutdown has prevented release of employment data beyond August, while President Trump’s threats to cut federal funding following Zohran Mamdani’s mayoral election add to fiscal concerns.

Economic Performance Despite Disruption

While official employment data remains unavailable due to the shutdown, ADP estimates suggest modest private-sector growth, with 42,000 jobs added nationally in October. Initial weekly jobless claims have remained subdued, though October business surveys indicate minimal economic growth. The Comptroller’s spotlight report offers optimistic findings about the city’s office market, which has outperformed both post-pandemic expectations and other major U.S. markets, countering fears of a “doom loop” scenario.

Tax Revenue Exceeds Expectations

Year-to-date revenues through September reached $27.9 billion, representing a 6.5% increase over the same period in fiscal year 2025. Property taxes, comprising 62% of total receipts, grew steadily by 2.8%. Combined Personal Income Tax and Pass-Through Entity Tax revenues increased 16.3% to $4.58 billion, while business income taxes declined 7.2%. Sales tax collections demonstrated resilience with 6.2% growth, and real estate transaction taxes surged 24.9%, according to the NYC Comptroller’s Office.

Federal Funding Concerns

Congress approved temporary funding through January, ending the shutdown that withheld SNAP benefits from vulnerable New Yorkers. However, the Trump Administration froze $18 billion for NYC transit projects, including the Second Avenue Subway and Hudson River Tunnel. The Department of Housing and Urban Development is expected to drastically reduce Continuum of Care program funding, potentially impacting over 8,000 units of permanent housing the city currently supports.

Workforce Recovery

The city’s full-time headcount increased by 4,057 staff since July, nearly four times last year’s increase. The Department of Education added 2,894 pedagogical staff, while NYPD headcount increased by 405. Cash balances stood at $4.01 billion as of November 6, well below last year’s $5.99 billion, due to increased payroll and health insurance costs. As Mayor-elect Mamdani prepares to take office, the city faces significant fiscal challenges requiring careful navigation of federal relations and budget management.