President Trump has previously stated that he would withhold federal funds from New York City if Zohran Mamdani prevailed in this year’s mayoral election in the city. In a new insight, Director of Fiscal Policy Jordan Haring walks through the legal questions about such a move.

Key points:

• President Trump recently said he would withhold federal funding from New York City if Zohran Mamdani won the mayoral election; now that Mamdani has won, time will tell if the president takes steps to withhold funding from the city.
• New York City’s $115.9 billion fiscal year 2026 budget includes $7.5 billion of federal funding, which primarily goes toward social services, education, and housing.
• The president’s threat to withhold federal funds from New York City brings up the issue of impoundment and whether the president can legally circumvent federal funding decisions made by Congress to withhold federal funds from New York City.

Read the analysis.