January 29, 2026 NEW YORK — The honeymoon period for Mayor Zohran Mamdani ended abruptly Wednesday as he pulled back the curtain on what he describes as a fiscal house of cards left behind by his predecessor. In a scorched-earth press conference, Mamdani alleged that former Mayor Eric Adams engaged in systemic "negligence," leaving the city staring into a $12 billion financial abyss.

"This crisis has a name," Mamdani told reporters, labeling the deficit the "Adams budget crisis." He accused the previous administration of low-balling recurring costs to manufacture the illusion of a balanced budget for political gain.

The $12 Billion Disappearing Act

Mamdani’s internal review, backed by an analysis from City Comptroller Mark Levine, suggests the gaps are roughly double what the public was previously told. The numbers are staggering:

• Cash Assistance: Budgeted at $860 million; actual costs hitting $1.6 billion.

• Homeless Shelters: Underfunded by at least $500 million.

• FY 2026 Gap: A projected $3 billion hole in that year alone.

Mamdani emphasized that these aren't "optional" programs, but critical responsibilities like special education and rental assistance that were left to rot on the vine.

War of Words: Adams and Cuomo Strike Back

The accusations didn't go unanswered. Former Mayor Eric Adams took to X (formerly Twitter) to blast Mamdani for "replacing math with slogans."

“Every so-called free program comes with a price tag, and someone always pays for it,” Adams posted, defending his record of navigating the migrant crisis without raising taxes.

Mamdani also cast blame north toward Albany, citing an $8 billion annual shortfall caused by the city generating 54.5% of state revenue but only receiving 40% in spending—a dynamic he traced back to the tenure of former Gov. Andrew Cuomo.

Rich Azzopardi, spokesperson for Cuomo, didn't mince words in response, mocking Mamdani for "cosplaying in a custom designer windbreaker" and reminding the Mayor that he spent five years in the state legislature with the power to fix those very inequalities.

On the Chopping Block: The NYPD’s SRG

While Mamdani was light on specific agency cuts, he confirmed he is in active talks to disband the NYPD’s Strategic Response Group (SRG).

The Mayor argued that conflating counterterrorism with protest policing is a fundamental mistake. “We don’t believe that there should be a unit that has both counterterrorism responsibilities and responsibilities to responding to protests,” Mamdani said. He vowed that any replacement unit would focus strictly on emergencies, not First Amendment exercises.

How Will the City Pay?

Despite the "fiscal emergency" rhetoric, Mamdani rejected the idea of broad austerity measures or "balancing the budget on the backs of working New Yorkers." Instead, his roadmap to solvency involves:

1. Taxing the Wealthy: Raising income taxes on the city’s highest earners.

2. Corporate Tax Hikes: Increasing levies on the most profitable corporations.

3. Efficiency over Austerity: Scrapping "useless" tech like the $500,000 MyCity chatbot.

The Catch? Both proposals require a green light from Albany. Governor Kathy Hochul, however, has already signaled she is a "hard no" on tax hikes, citing stronger-than-expected Wall Street bonuses and a desire to keep the city competitive.

A Cold Reality

The budget drama unfolds against a backdrop of a city struggling with the aftermath of a massive winter storm. Mamdani confirmed that of the 10 recent outdoor deaths, seven appear related to hypothermia. While the city has cleared 95% of its bus shelters, the record-breaking cold—the worst in eight years—continues to strain the city's operational limits.

With a legally required preliminary budget due February 17, Mamdani has less than three weeks to turn his critique of the past into a viable plan for the future.