US President Donald Trump backed Andrew Cuomo and threatened to withhold federal funds if Democrat Zohran Mamdani won, before Mamdani’s landslide victory, which made him the first Muslim mayor of New York City.
During the campaign, Trump repeatedly targeted Mamdani, describing him as a “communist” rather than the “socialist” label Mamdani embraces. “He’s far worse than a socialist," Trump claimed, adding that federal funds would be “wasted" under Mamdani’s leadership.
According to a New York State Comptroller report published in April, New York City will require $7.4 billion in federal funding for fiscal year 2026. This accounts for 6.4% of the city’s total budget, with the remainder coming from state taxes, fees, and other revenues.
State Comptroller Thomas DiNapoli, the state’s chief fiscal officer, noted that federal funds primarily support housing and social services programs, with the Temporary Assistance for Needy Families (TANF) being the largest non-pandemic federal allocation for fiscal years 2025 and 2026.
In fiscal year 2025, New York City’s operational budget was $9.7 billion, including $1.1 billion in pandemic relief funds.
Legal limits on presidential authority
Under the US Constitution, Congress, not the president, controls federal funding allocations to states. Article I, Section 8 empowers Congress to collect taxes and allocate spending, while Article I, Section 9 states, “No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law.”
A president who unilaterally withholds funds approved by Congress risks unconstitutional “impoundment.” The Impoundment Control Act of 1974, enacted after President Nixon attempted to withhold funds, permits the president to delay spending for up to 45 days, but Congress must subsequently approve such action.
While the president has limited discretion, Congress has the final authority. Currently, Republicans control both chambers, with 53 Senate seats and 220 House seats, compared with 47 and 212 for Democrats, respectively.
Previous federal funding cuts to New York
The Trump administration previously attempted to withhold funds from the city under outgoing Mayor Eric Adams. Federal authorities blocked $12 million in grant money intended for the Metropolitan Transportation Authority (MTA), which would have been redirected to NYPD counterterrorism operations on the subway.
These funding pauses were part of broader federal actions announced in January. On October 8, Mayor Adams filed a motion supporting New York State’s legal challenge against Homeland Security Secretary Kristi Noem to prevent the revocation of the funds.
The Comptroller’s report also highlighted that the city had already been notified of hundreds of millions of dollars in paused or partially terminated federal grants. DiNapoli estimated that potential reductions to the city’s operational budget could reach $400 million for fiscal year 2025 and $135 million for 2026, with the possibility of further changes once the federal budget for 2026 is finalized.
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