New York City Mayor Zohran Mamdani has delayed finalizing the city’s $127 billion budget to push the state to revamp a tax credit that benefits hedge funds, private equity firms, and other businesses. The credit, which allows these entities to avoid paying taxes on investment income, has drawn criticism for disproportionately favoring wealthy investors. Mamdani’s office argues the policy undermines equity and fiscal responsibility, urging the state legislature to prioritize reforms that align with the city’s financial goals.

Without changes, the tax break risks perpetuating systemic disparities in how New York funds public services.