Mamdani-Menin Alliance Urges NY State to Cut Tax Credit Amid Budget Crisis

New York City Mayor Zohran Mamdani and Council Speaker Julie Menin called on New York State to scale back a tax credit benefiting millionaires to address the city's budget gap, but Governor Kathy Hochul rejected the proposal.

Tue Apr 28 2026

NYC Budget Crisis Sparks Unusual Political Alliance

Mayor Zohran Mamdani and Council Speaker Julie Menin have been at odds over how to close New York City’s multi-billion-dollar budget gap. Mamdani argued that the deficit could only be plugged by state tax increases on millionaires and large corporations, while Menin proposed trimming municipal bloat. However, the two leaders recently joined forces to call on Governor Kathy Hochul and state lawmakers to scale back a tax credit that largely benefits millionaires. They claimed this change would generate $1 billion in new revenue for the city, significantly aiding its financial balance.

Governor Hochul Rejects Proposal, Complicating Budget Negotiations

Despite the joint plea from Mamdani and Menin, Governor Hochul, who is currently grappling with New York State's own budget, which is nearly a month late, immediately rejected their proposal. Hochul stated that the Pass-Through Entity Tax (PTET) credit would not be changed, putting a dent in their unusual alliance. This opposition leaves Mamdani and Menin without a clear path to fill the city’s budget hole and creates a new front in the ongoing, overdue state budget negotiations. The fraught dynamic comes at a politically delicate time for Hochul, who is preparing for a reelection bid and relies on support from New York City.

*Source: Politico (2026-04-28)*

Tags: #NYC #Budget #Taxation #Mamdani #Menin #Hochul