Overview

• Bessent told Fox Business he would refuse a federal rescue for New York if Mamdani’s program is carried out, invoking the 1975-era “drop dead” line.
• He said he “guarantees” the city would seek a bailout under that agenda, framing the plans as a path to fiscal crisis.
• The treasury secretary warned the proposals would erode the tax base by pushing out high earners and businesses, citing wealth shifts from Manhattan to Palm Beach.
• Mamdani’s platform includes rent freezes, fare-free buses, city-run grocery stores and universal childcare, funded by higher corporate taxes and a 2% surcharge on incomes above $1 million.
• The warning lands in a fractured race that Mamdani leads after winning 56% in the June primary, as billionaire Bill Ackman has pledged to finance a rival.