Treasury Secretary Warns of NYC Bailout Risk under Mamdani's Plans

Treasury Secretary Scott Bessent declared that under no circumstances would the Trump administration provide financial assistance to New York City if mayoral hopeful Zohran Mamdani's plans are enacted. Bessent's remarks came during a Fox Business Network interview on Wednesday, where he highlighted the risk of Mamdani's proposals leading the city to seek a bailout.

Bessent referenced historical rhetoric by comparing his stance to that of former President Gerald Ford's reported refusal to save New York from bankruptcy in 1975. During the interview, Bessent criticized Mamdani as a protégé of Senator Elizabeth Warren and dismissed the possibility of federal intervention akin to a relief measure for Argentina.

Bessent noted Mamdani's proposals, which include rent freezes and free public services, as potential financial threats. Mamdani, who secured a major primary win, has not yet responded to Bessent's comments. The treasury secretary highlighted concerns over the economic impact of increased corporate taxes and additional levies on high-income residents proposed by Mamdani.

(With inputs from agencies.)