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How Trump could squeeze Mamdani's NYC agenda

Democratic socialist Zohran Mamdani basked in his history-making election as New York City's mayor Tuesday, but harsh reality loomed: the wrath of a president who's threatening to withhold federal money from a city that relies on billions from D.C. each year.Why it matters: Mamdani's ambitious ideas to boost affordability in New York are now at a crossroads with President Trump, who's eager to thwart the mayor-elect and — with the 2026 midterms in mind — cast him as a "communist" symbol of the Democratic Party.Zoom out: Even before New Yorkers went to the polls Tuesday, Trump — a former Manhattan resident — made clear he opposed New York electing the 34-year-old progressive who's called himself "Donald Trump's worst nightmare."On Monday, Trump took to Truth Social to reiterate his threats to New York if it elected Mamdani:"If Communist Candidate Zohran Mamdani wins the Election for Mayor of New York City, it is highly unlikely that I will be contributing Federal Funds, other than the very minimum as required, to my beloved first home, because of the fact that, as a Communist, this once great City has ZERO chance of success, or even survival!""It is my strong conviction that New York City will be a Complete and Total Economic and Social Disaster should Mamdani win," Trump added.The president urged supporters to vote for Mamdani's independent opponent, former Gov. Andrew Cuomo, who cast Mamdani as inexperienced and out of his depth.Some people close to Trump believe he's serious about his threat.Trump has been inclined to target Democratic areas and political rivals throughout his second term, including by dispatching federal troops to deal with protesters in Illinois and California.Zoom in: New York City is supposed to receive $7.4 billion in federal funds in fiscal 2026, according to an analysis by the New York State Comptroller's Office. That accounts for 6.4% of the city's budget.The biggest allotment goes to the city's education department, which receives more than $2 billion from the feds — 6.2% of the department's total budget.The city agency with the next highest federal contribution is the Department of Social Services, which receives $1.5 billion, or 13.3% of its budget from the feds.Some city agencies are particularly dependent on federal funds.The Administration for Children's Services, for example, gets 39% of its money from Washington.The Department of Housing Preservation & Development — the agency tasked with creating and preserving affordable housing in a city where hundreds of thousands struggle with housing costs — gets 50% of its budget from the feds.Trump hasn't specified what federal funds he could try to withhold, but he potentially could throw a wrench into Mamdani's plans to expand the development and production of affordable housing, a cornerstone of his campaign. Infrastructure funding also could be a target.Reality check: Congress, rather than the president, has the power of the purse and ultimately determines the federal budget.Douglas Holtz-Eakin, president of the conservative American Action Forum and a former director of the nonpartisan Congressional Budget Office, said there are broad entitlement programs that New Yorkers receive that can't be cut.However, Holtz-Eakin said Trump conceivably could eliminate individual grants given to departments."They can just break the contract and say, 'Sue us. You want it? Come get it,' " Holtz-Eakin said."That's outside the boundaries of what used to be considered appropriate, but there are no boundaries now."The other side: Mamdani has been dismissive of Trump's warnings about withholding funding, calling it a "threat ... not the law.""Too often, we treat everything that comes out of Donald Trump's mouth as if it is already legal, just by virtue of who is saying it," Mamdani said.

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