Bessent says feds won’t bail out NYC if Mamdani wins; ‘Drop dead’ warning
Treasury secretary warns federal rescue would hinge on Mamdani’s policy plans; candidate’s proposals include rents, buses, grocery stores and childcare funded by new taxes
WASHINGTON — Treasury Secretary Scott Bessent warned Wednesday that the federal government would not bail out New York City if mayoral candidate Zohran Mamdani implements his policy agenda, telling Fox Business Network 'Drop dead' when asked about a bailout. Bessent later said, 'I guarantee you — and there are not a lot of things in life that are sure — that New York City will be coming to the federal government for a bailout if the Mamdani plans are implemented.' He described the remark as echoing a line often associated with President Gerald Ford during New York’s 1975 fiscal crisis.
Bessent did not specify which Mamdani proposals would trigger that response. He described Mamdani as the socialist protégé of Elizabeth Warren, who has criticized bailouts in other contexts. Mamdani won the Democratic nomination in a June 24 primary with 56% of the vote and is now a leading candidate in the November election. His platform includes rent freezes, free city buses, city-owned grocery stores and free childcare, financed by higher corporate taxes and an extra 2% tax on New Yorkers earning more than $1 million a year.
Mamdani’s campaign did not respond to a request for comment Thursday, as the candidate remains a prominent figure in a contest that could influence the city’s approach to housing, transit and social services if elected.
Observers note the remarks come as New York City faces a shifting fiscal landscape and as debates intensify over how federal policy would interact with municipal finances under a candidate who favors expansive public services. Warren’s recent statements criticizing bailouts for Argentina’s government have added another layer to the political dynamic surrounding Mamdani’s candidacy, which Bessent framed as part of a broader ideological clash over federal aid and urban policy.
As the race moves toward November, analysts say the feasibility of Mamdani’s ambitious platform—if implemented—would hinge on state and federal responses to a city facing entrenched budget pressures. The dialogue highlighted by Bessent’s comments underscores the tension between locally elected leadership and federal stipulations in times of municipal strain, a topic certain to feature in upcoming coverage of the New York City political and fiscal landscape.
