Treasury Secretary Bessent tells NYC to ‘drop dead’ if it elects Mamdani

If New York City’s Democratic nominee, Zohran Mamdani, is chosen, the federal government will not bail it out in the event of a financial crisis, according to US Treasury Secretary Scott Bessent.

Bessent reportedly told the nation’s most populous city to “drop dead” on Wednesday, citing a phrase he attributed to former president Gerald Ford in 1975, when the city was reportedly in trouble with bankruptcy.

Bessent told New York-born anchor Maria Bartiromo on Mornings with Maria on Fox Business Network, which is based in New York, that it will be the same as Gerald Ford’s famous quote, “drop dead.”

Ford never actually stated that. It was inspired by a headline in a New York tabloid at the time.

If the Mamdani plans are put into action, Bessent continued, “I guarantee you that there are not many things in life that are certain.”

Which aspects of Mamdani’s platform could present financial risk, the Treasury Secretary did not specify. Dem Dem Demdani, a 31-year-old Democratic socialist, currently leads by double-digit margins in 18 different polls for November’s mayoral elections.

According to an analysis of Mamdani’s proposals by Al Jazeera&nbsp, the campaign includes detailed funding plans for widely-popular initiatives like free city buses and a pilot program for city-run grocery stores. These initiatives would increase the corporate tax rate and reduce taxes by 2 percent on New Yorkers who earn more than $1 million annually.

However, New York State Governor Kathy Hochul, who endorsed Mamdani over her ex-colleague Andrew Cuomo, needs to approve any changes to the city’s tax structure. Cuomo is running as an independent after losing to Mamdani in the Democratic primary.

If a financial need arises as a result of policies put forth by other entities, including the state, congressional leaders, or the White House itself, the White House and the Department of Treasury’s position on a bailout would differ. No comments were made on either.

Trump’s economic policy impact

US President Donald Trump’s economic policies have already been linked to a decline in the country’s economy, particularly in New York City. With only 22, 000 new jobs added nationwide in August, the labor market has cooled. Just 54, 000 new jobs were added to the private sector, nearly half the number added the previous month, according to the ADP private payroll report.

Compared to 66, 000 jobs added in the same period last year, New York City added fewer than 1, 000 in the first half of the year. State leadership positions, as well as city and state tax rates, are unchanged. Donald Trump, however, established significant changes to economic policy between the first half of 2024 and 2025.

Prior to now, the Trump administration has taken policy steps against New York City. The city’s congestion pricing policies were the subject of a threat earlier this year from the Department of Transportation. Due to protections for transgender students, the Department of Education threatened to withhold funding for New York City schools. Additionally, Congress had to cut funding for FEMA, which was intended to aid the city in preventing terrorist attacks.