New York City Mayor Zohran Mamdani is moving away from the property tax increase he proposed earlier this year to help close the city’s budget gap. The New York Times reported that the mayor told lawmakers he is “highly unlikely” to move forward with the increase.  

According to CPA Practice Advisor, the plan was expected to raise $14.8 billion over four years and was also meant to encourage New York State to increase income taxes on higher earners. But according to the Times report, it quickly faced opposition from both progressives and centrist Democrats, highlighting how property tax changes can be a sensitive issue, especially for middle-class homeowners who often feel the most impact. 

At the same time, the administration is still looking for ways to cut costs in city government. “Government must deliver for working people—and every dollar in our budget must work as hard as they do,” Mamdani said in a statement. He mentioned efforts to find savings and reduce waste in city agencies. Executive Order 12 tells agencies to find savings of 1.5% for fiscal year 2026 and 2.5% for fiscal year 2027.   

The budget gap remains a central issue, with City Comptroller Mark Levine describing it as “the biggest budget gap since the Great Recession.” Agencies submitted their savings proposals on March 20 as the administration continues to evaluate options for closing the shortfall.