Mamdani, NYC Council reach handshake deal on colossal $125B budget — without NYPD expansion

Key Points:

• Mayor Zohran Mamdani and City Council Speaker Julie Menin reached a last-minute agreement on New York City's nearly $126 billion budget for fiscal year 2027, excluding an expansion of NYPD headcount despite earlier proposals.
• The deal includes a new $175 million rental assistance program aimed at helping New Yorkers facing eviction or homelessness, expanding access beyond the existing $1.7 billion housing voucher program.
• Mamdani's administration agreed to drop its lawsuit against the City Council related to housing voucher expansion, which has grown significantly in cost from $25 million annually in 2019 to a potential $4 billion under expansion plans.
• The budget allocates $37.9 billion to the Department of Education and $6.59 billion to the NYPD, but the mayor rejected increasing police staffing from 33,861 to 35,370 officers, a move criticized by council leaders concerned about public safety.
• Facing a $5.4 billion budget gap, Mamdani proposed funding solutions including taxing the wealthy and raising property taxes, while Governor Kathy Hochul facilitated $4 billion in temporary relief measures and a new pied-à-terre tax expected to generate $300 million to $500 million annually.