Mayor Zohran Mamdani and City Council Speaker Julie Menin set aside their differences to jointly urge Gov. Kathy Hochul for more state funding, as New York City grapples with a projected $5.4 billion deficit. They proposed cutting a business tax credit from 100% to 75%, arguing the change could generate up to $1 billion annually by targeting wealthy business owners through the Pass Through Entity Tax.

Hochul quickly dismissed the request, telling reporters "It's not happening" and pointing to billions in state dollars already earmarked for child care and cash assistance. Instead, the governor has championed a tax on second homes worth more than $5 million, a measure she claims could raise $500 million per year for the city. The state budget remains nearly a month overdue.

The city sends roughly $69 billion in tax revenue to Albany but receives only about 40% back, a disparity Mamdani called unsustainable. If no new revenue materializes, the mayor has begun exploring $3 billion in spending cuts, including reductions to consulting contracts and rental assistance programs.