“In just a few days, the mayor will present his executive budget for the coming fiscal year. It must prepare us for the storm ahead—something his preliminary budget proposal, released in January, unfortunately failed to do.”
A city budget deal is due July 1. (Michael Appleton/Mayoral Photography Office)
New York City’s economic and fiscal health is under assault by the Trump administration. We need to strengthen our city budget to withstand the attack.
In just a few days, the mayor will present his executive budget for the coming fiscal year. It must prepare us for the storm ahead—something his preliminary budget proposal, released in January, unfortunately failed to do.
Even before Trump’s second inauguration, it was clear that New York would be a prime target. Now, just three months in, the damage is already mounting.
Trump’s chaotic policies—on tariffs, immigration, and the rule of law—are rattling the global economy and hitting New York City especially hard. International tourists are canceling trips at alarming rates, whether from Canada, Europe, or Latin America. With tourism standing as one of the city’s largest economic sectors, this drop-off threatens thousands of jobs and millions in tax revenue.
Few cities are as exposed to global trends as New York. From Wall Street to Broadway, from hotel workers to food vendors, our economy depends on international engagement—and Trump is actively unraveling it.
Businesses here are already pausing investment, faced with skyrocketing prices for everything from steel to avocados. Small businesses, especially restaurants, are being squeezed by supply chain disruptions, unpredictable costs, and the chilling effect of a crackdown on immigrant workers.
Then there are the direct hits to our city budget. The Trump administration has already slashed $100 million from our health department and $188 million from our migrant shelter system. That’s just a fraction of the nearly $8 billion we receive in direct federal aid—funding that supports everything from public schools to affordable housing to subway service. All of it is now at risk.
And worse may be coming. Republicans in Washington are pushing a federal budget that promises tax cuts for billionaires, paid for by gutting Medicaid, food stamps, early childhood education, and other programs critical to low-income New Yorkers.
Meanwhile, the broader economy is showing signs of strain. A growing number of experts now warn that Trump’s chaos could push the U.S. into a recession—something New York City cannot afford to be unprepared for.
That’s why we need to act decisively in the city’s upcoming budget. We need to do three things:
First, increase our reserves. We should add at least $1 billion to the General Reserve Fund and another $1 billion to the Rainy Day Fund. These are our buffers—the tools we’ll need to cushion the impact of either federal cuts or declining revenues. Failure to strengthen them is like going into a fight with one hand tied behind your back.
Second, stop playing budget games. Every year, the city under-budgets for known costs like overtime, rental assistance, and special education. These are not surprises—they are recurring obligations. Pretending they don’t exist only weakens our ability to respond to real emergencies. This year, we need honest, accurate projections from the start.
Third, make targeted investments to protect vital services. That means plugging the holes that Trump has already blown in our budget, such as in public health programs, and preparing a plan to shore up vital services in education, housing and more.
If we fail to move quickly, we’ll be forced into more painful, reactive choices later. Acting now means minimizing the harm down the road.
New York City has tremendous strengths: a vast and diverse economy, an unmatched workforce, and a proven culture of resilience. Every time we’ve been tested, from 9/11 to the COVID pandemic, we’ve fought our way back and emerged stronger.
But resilience isn’t just about grit. It’s about preparation. We owe it to the people of this city to meet this moment with clarity, discipline, and resolve.
Donald Trump may think he can beat us. But he can’t. New Yorkers don’t flinch. We plan. We fight smart. And we win.
Mark Levine is the Manhattan borough president, a former City Council member and a candidate for New York City comptroller.
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