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US Treasury Secretary Scott Bessent warned no federal bailout for New York if Zohran Mamdani wins mayor, citing risky policies.
Zohran Mamdani is seen. (Image Credit: Reuters)
US Treasury Secretary Scott Bessent said that New York will receive no federal bailout if it falls into financial crisis under a potential administration led by Democratic nominee Zohran Mamdani. Scott Bessent said, “I guarantee you and there are not a lot of things in life that are sure that New York City will be coming to the federal government for a bailout if the Mamdani plans are implemented.”
He did not specify which policies he considered risky. The US Treasury Secretary invoked the infamous phrase associated with New York’s 1975 fiscal crisis saying, “It will be the same thing that Gerald Ford said: ‘Drop dead.’”
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Zohran Mamdani, a 31-year-old Democratic socialist, currently leads in 18 polls by double-digit margins ahead of the November 4 mayoral election. His platform includes universal child care, a city-run grocery pilot and free city buses. Funding would come from raising corporate taxes and adding a 2 percent surcharge on incomes above $1 million, he has said.
New York Governor Kathy Hochul, who must approve any tax changes, has endorsed Zohran Mamdani in the race in which former governor Andrew Cuomo, who lost the Democratic primary, is now running as an independent.
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Scott Bessent’s comments come amid economic turbulence in the US as job creation slowed sharply in August, with only 22,000 new positions added nationwide. New York City created fewer than 1,000 jobs in the first half of 2025, compared with 66,000 during the same period last year.
Delhi, India, India
September 25, 2025, 15:29 IST
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