Washington: In an unusually blunt statement, U.S. Treasury Secretary Scott Bessent declared on Wednesday that the federal government would refuse any bailout to New York City if Democratic mayoral candidate Zohran Mamdani’s ambitious plans are implemented. Speaking to Fox Business Network, Bessent drew a striking parallel to former President Gerald Ford’s infamous 1975 stance, telling reporters that under such circumstances, the city would be told to “drop dead.” While Ford never actually used the phrase, it has long symbolized his decision to withhold federal aid during New York’s fiscal crisis.
Bessent labeled Mamdani a “socialist protégé” of Senator Elizabeth Warren and criticized his progressive platform, which proposes rent freezes, free city buses, city-run grocery stores, and complimentary childcare. These initiatives would be funded by raising corporate taxes and adding a 2% surcharge on New Yorkers earning over $1 million annually. The Treasury Secretary did not specify which elements of Mamdani’s proposals could potentially trigger financial instability.
Mamdani, who secured 56% of the vote in the June 24 primary, is now the frontrunner in the November mayoral election. His platform reflects a broader trend in urban politics, where progressive policies seek to expand social services while raising revenue through targeted taxation. While these ideas have gained popularity among voters seeking equitable solutions, Bessent’s warning underscores the ideological divide between federal fiscal authorities and local progressive movements.
The mayoral candidate’s office did not immediately respond to requests for comment regarding Bessent’s remarks. As the city approaches the November polls, the stark warning from the Treasury is expected to amplify debates over the city’s financial autonomy and the limits of federal intervention. Observers note that while Mamdani’s policies aim to expand social welfare, they now face scrutiny not only from opponents within the city but also from the highest levels of the federal government.
The exchange highlights a growing tension in American politics, where fiscal conservatism at the federal level increasingly clashes with progressive urban agendas. Analysts suggest that the coming months could see an intensification of rhetoric, with New Yorkers watching closely to see whether promises of social reform can withstand both political opposition and financial realities.