Analysis by WorldTribune Staff, January 30, 2026 Real World News

During his campaign, New York City Mayor Zohran Mamdani promised his socialist agenda would bring New Yorkers such things as free health care for children ages 6 months to 5 years, including illegal aliens; free bus rides; a freeze on rents; and city-run grocery stores selling food at cost.

Of course, to make this happen, Mamdani would have to raise taxes.

To do that, he would need the approval of state leaders in Albany.

Albany said no.

Mamdani proposed a 2-percentage-point increase on the city income tax for those earning over $1 million, raising the rate from 3.9% to 5.9%. He proposed increasing city corporate tax rates from 7.25% to 11.5%. His campaign estimated this would generate $4 billion annually.

Without this revenue, the Mamdani socialist agenda collapses.

Democrat Gov. Kathy Hochul, who is running for re-election this year, has said increasing taxes on wealthy New Yorkers is “completely off the table.”

Hochul’s January 2026 $260 billion state budget includes no income tax increases and extends the 7.25% corporate tax rate for three more years.

Even if both of New York’s legislative chambers pass tax increases, Hochul would likely veto the legislation.

Additionally, New York City Comptroller Mark Levine announced this month that the city faces a $2.2 billion deficit for fiscal year 2026 and a $10.4 billion deficit for fiscal year 2027.

With the revenue shortfall and no tax increases on the wealthy, Mamdani’s plans for free programs are unlikely to materialize.

Mamdani promised fare-free buses by eliminating the $2.90 fare on all MTA buses citywide. The MTA is a state agency controlled by the governor. Mamdani can’t unilaterally make buses free. MTA Chair Janno Lieber stated that any change must be studied extensively and expressed skepticism about eliminating the fare.

As for free universal childcare for children aged 6 weeks to 5 years, estimated to cost $6 billion annually, Hochul in her State of the State address this month announced she would fund the first two years of free pre-K for 2,000 2-year-olds annually in New York City. Political observers note Hochul is using state money to deliver a scaled-down version of Mamdani’s promise while running for re-election in 2026, positioning herself to take credit without empowering Mamdani’s broader agenda.

As for rents, the city’s Rent Guidelines Board sets rates for rent-stabilized apartments. The mayor appoints board members. Implementing a complete rent freeze would likely require state legislative approval and face legal challenges from landlords. The Real Estate Board of New York has signaled opposition.

City-run grocery stores in all five boroughs would require City Council approval. Political analyst J.C. Polanco stated the odds of City Council support are minimal because council members have dozens of bodegas and supermarkets in their districts. These businesses are part of the fabric of the community, and city councilmembers would have to vote for government-run stores that compete with their constituents’ businesses.

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