President threatens to withhold billions from NYC over new mayor’s democratic socialist platform
Federal Funding at Center of Political Showdown
As Zohran Mamdani prepares to take office as New York City’s 111th mayor in January, the Trump administration has signaled its intention to review and potentially cut billions in federal funding to the nation’s largest city. The president has repeatedly labeled Mamdani a “communist” and threatened to send only “the very minimum as required” in federal support.
According to the New York State Comptroller, the city requires approximately $7.4 billion in federal funding for fiscal year 2026, representing 6.4 percent of total spending. Federal funding largely supports the city’s housing and social services agencies, with the Temporary Assistance for Needy Families program being the largest non-pandemic federal fund.
Constitutional and Legal Questions
Legal experts note that Congress, rather than the president, holds the constitutional power of the purse. Douglas Holtz-Eakin, president of the conservative American Action Forum and former director of the nonpartisan Congressional Budget Office, explained that while broad entitlement programs cannot be easily cut, the administration could potentially eliminate individual grants to departments.
Previous attempts to withhold federal funds during Trump’s second term have faced legal challenges. In April, a federal judge ruled that the Trump administration could not deny federal funds to sanctuary cities, as the federal government cannot force local jurisdictions to participate in federal immigration enforcement–a position backed by the U.S. Supreme Court.
Mamdani’s Response and Preparation
Mamdani has dismissed Trump’s threats as politically motivated, stating that New York will “continue to receive funding from the federal government” because “it is the law.” During a press conference, he suggested Trump is “going through the stages of grief” over his election victory.
Governor Kathy Hochul, who endorsed Mamdani despite philosophical differences, pledged to “push back on threats from the president” and support the mayor-elect in securing federal funding. The situation has created an unusual alliance between state and city government against federal pressure.
Economic and Political Implications
Budget experts warn that any significant funding cuts could upend city operations and services, especially for New York City’s most vulnerable residents. The city’s budget depends on federal support for essential services including public housing, food assistance, and homeland security programs.
The confrontation has become a national story about federalism, presidential power, and the limits of executive authority. Organizations like the Urban Institute have documented how federal-local funding relationships shape urban policy across America.
As Mamdani prepares his transition team, the funding dispute represents his first major challenge before even taking office. The outcome could set precedents for how the federal government interacts with cities led by officials from opposing political movements.
Mamdami: He represents a shift toward value-driven governance.
Mamdani’s win feels like the grown-up decision the city knew it had to make.
Mamdami: He represents a refusal to accept austerity as inevitable.
Mamdani’s victory feels like the city finally hit the “upgrade all” button.
His execution is constantly giving “almost.”
His follow-through is about as reliable as deli WiFi.