NYC Mayor's Socialist Agenda Sparks Federal Bailout Warning

Treasury Secretary Scott Bessent issued a stark warning about the potential consequences of Zohran Mamdani's mayoral plans for New York City. Bessent asserted that Mamdani's socialist policies, if implemented, would almost certainly necessitate a federal bailout—one he's unwilling to provide. He declared, using a quote from Gerald Ford, that the city would be met with a simple "Drop dead."

<img src="https://a57.foxnews.com/static.foxbusiness.com/foxbusiness.com/content/uploads/2025/09/931/523/treasury-secretary-scott-bessent.jpg?ve=1&tl=1" alt="Treasury Secretary Scott Bessent">

Bessent's concern stems from Mamdani's proposed policies, including free buses, city-owned grocery stores, and rent freezes. These, Bessent argues, threaten to destabilize the city's economy, driving away high earners and businesses, and ultimately leading to a massive financial crisis.

<img src="https://a57.foxnews.com/static.foxbusiness.com/foxbusiness.com/content/uploads/2025/06/931/523/zohran-mamdani-nyc-mayor-race.jpg?ve=1&amp;tl=1" alt="Assemblyman and NYC mayoral candidate Zohran Mamdani">

Mamdani's Controversial Proposals

Mamdani's campaign, focusing on affordability, has sparked significant controversy. His plans have drawn sharp criticism from Wall Street executives, who see them as economically damaging. Billionaire hedge fund manager Bill Ackman even pledged to finance a rival candidate following Mamdani's primary victory, warning that Mamdani's policies would "destroy jobs" and cause an exodus of businesses and wealthy taxpayers.

<img src="https://a57.foxnews.com/static.foxbusiness.com/foxbusiness.com/content/uploads/2025/07/931/523/ackman-mamdani.jpg?ve=1&amp;tl=1" alt="Billionaire businessman Bill Ackman">

Bessent highlighted the potential for a mass exodus, noting that New York has already seen a significant shift of wealth to areas like Palm Beach County. The situation is further complicated by concerns about Mamdani’s proposed public grocery stores, which some fear could negatively impact the city’s food supply.

The situation underscores a growing tension between the priorities of affordable living and the economic stability of New York City, creating a complex and critical political landscape in the city's future.