New York City’s political landscape is shifting in dramatic fashion as Mayor-elect Zohran Mamdani, a self-described democratic socialist, finds himself at the center of a storm involving tax policy, federal relations, and the ever-present tug-of-war between insurgent progressives and the Democratic establishment. Just weeks after his surprise victory over former Governor Andrew Cuomo and Republican Curtis Sliwa, Mamdani’s every move is under scrutiny—not only by his own party’s left flank but by state and national power brokers as well.
On Monday, November 17, 2025, Nassau County Executive Bruce Blakeman threw down a gauntlet, challenging Governor Kathy Hochul to publicly oppose Mamdani’s headline-grabbing tax proposals. Flanked by business leaders and local officials, Blakeman warned that raising taxes could drive corporations, jobs, and even residents out of New York State. “This is bad for Nassau County, this is bad for Long Island, this is bad for the Metropolitan region, and this is bad for New York State — we are going to fight very hard against it,” Blakeman told reporters, according to The New York Post.
The specifics of Mamdani’s plan are bold: a 2% tax increase on millionaires and a proposal to hike the corporate tax rate from 7.5% to 11.5%, matching neighboring New Jersey. According to Nassau County estimates, a Long Island business earning $5 million per year would see its corporate tax bill jump by roughly $212,500 annually. In New York City’s five boroughs, the figure could climb from about $805,000 to over $1 million once city taxes are factored in. The Democratic Socialists of America (DSA), emboldened by Mamdani’s win, have been pressing Hochul to support these increases, framing the election result as a mandate for taxing the rich.
Yet, the governor has so far walked a careful line. While Hochul has publicly insisted she won’t raise income taxes, she has reportedly shown some openness to hiking the corporate tax rate. “It’s November — January, we’ll have at least a clear view of what we’re in for the next session and the next year. So I’m going to be, not intentionally vague, but I had to be vague because we don’t have all the information,” Hochul said Monday, as reported by The New York Times. Her caution is not without reason: President Donald Trump has threatened to halt federal funding to New York City should Mamdani’s agenda move forward, adding another layer of uncertainty to the city’s already precarious budget picture.
Blakeman and his allies argue that these tax hikes would inevitably be passed on to shoppers and small businesses in the form of higher prices. “We are very concerned that this will drive more jobs out of New York State, that this will drive more businesses out of New York State, and that this will drive more residents out of New York state,” Blakeman added, echoing a fear that resonates with many in the business community.
Meanwhile, the political chess game between Mamdani and Trump has taken a surprising turn. After months of public sparring—Trump repeatedly called Mamdani a “communist,” a label Mamdani firmly denies, and endorsed Cuomo in the mayoral race—the two are now preparing for a face-to-face meeting in Washington, D.C. On Sunday night, November 16, Trump told reporters, “The mayor of New York, I will say, would like to meet with us and we’ll work something out. We want to see everything work out well for New York.”
Mamdani, for his part, confirmed his team had already reached out to the White House. “I will go to make the case to the president,” he told India Today. His focus? Addressing the affordability crisis, including recent cuts to the Supplemental Nutrition Assistance Program (SNAP) that have hit low-income New Yorkers hard. “The president ran a campaign where he promised to deliver cheaper groceries, promised to reduce the cost of living,” Mamdani said. “But we are seeing his actions and that of his administration in Washington leading to the exact opposite.” As of November 18, no date had been set for the meeting, but both camps appeared eager to strike a more conciliatory tone.
This détente is a marked shift from the campaign, when Trump threatened to withhold federal funds and even floated the idea of sending in federal troops if Mamdani won. Mamdani, meanwhile, positioned himself as a bulwark against Trump, telling supporters in his victory speech, “Donald Trump, since I know you’re watching, I have four words for you: Turn the volume up.” But now, political necessity seems to be driving both men toward dialogue, however uneasy.
Back in New York, Mamdani faces a different kind of challenge: navigating the treacherous waters of Democratic Party infighting. City Council Member Chi Ossé, a democratic socialist and one-time Mamdani ally, has created a campaign committee to challenge House Minority Leader Hakeem Jeffries in the upcoming Democratic primary. For Mamdani, this is a political headache he’d rather avoid. “It’s a real pain in the ass for them,” Democratic consultant Chris Coffey told POLITICO, referring to Mamdani’s team. “They really don’t want to be talking about Hakeem at a time when they need to reassure people — and get money from D.C. and Albany.”
The stakes are high. Supporting insurgent candidates could alienate powerful allies in Washington and Albany—relationships Mamdani will need to advance his ambitious agenda of universal child care, free bus service, and city-owned grocery stores. On the other hand, failing to back the left’s rising stars risks alienating his base, particularly the DSA, which played a pivotal role in his election. “The agenda is what has to come first, and from there we’ll make all of our decisions,” Mamdani said Tuesday, when pressed about whether he’d support Ossé’s run.
The dilemma extends beyond the Jeffries race. Progressive groups are already eyeing primary challenges against other establishment Democrats, and every endorsement—or lack thereof—by Mamdani will be closely watched. As one adviser told The Daily News, “He wants to remain true to the movement that he just emerged from, which is an insurgent movement that has an appetite for shaking up the political class, the political order. But at the same time he needs to partner with political leaders he hasn’t previously been aligned with.”
Governor Hochul, for her part, appears to be playing the long game. Despite pressure from the left, she has kept lines of communication open with Mamdani, knowing that her support will be crucial for any major city initiative. Lieutenant Governor Antonio Delgado, running to unseat Hochul, has already earned endorsements from progressive groups that backed Mamdani, further complicating the mayor-elect’s political calculus.
As the city’s new leader, Mamdani finds himself pulled in multiple directions—by activists demanding transformative change, by establishment figures wary of disruption, and by a White House whose support is anything but guaranteed. The coming months will test not only his policy ambitions but his ability to balance competing interests without losing the trust of those who swept him into office. One thing is clear: New York’s political drama is just getting started.
