NYC Comptroller Warns of Major Risks Under Second Trump Administration

In a detailed report released this week, New York City Comptroller Brad Lander laid out a stark assessment of the potential impacts of a second Trump administration on New York City’s budget, infrastructure, and vulnerable populations. Drawing on Donald Trump’s campaign rhetoric, the Project 2025 playbook, and his first term as president, the report warns of sweeping changes that could strain the city’s economy and social fabric.

Read the NYC Comptroller’s report here. 

Threats to NYC’s Budget and Public Services

The report highlights the city’s reliance on $7.92 billion in federal funding—approximately 7% of its FY 2025 budget—for critical services like public education, housing, healthcare, and social services. Comptroller Lander cautions that executive actions and legislative proposals from a Trump administration could drastically reduce or reallocate this funding.

Specific risks include:

• Public Education: NYC’s public schools and CUNY receive $3.5 billion annually in federal funds. These could be reduced, redirected to private school vouchers, or tied to conditions such as removing equity-focused programs.
• Healthcare: NYC Health + Hospitals (H+H), which serves 1.2 million residents, could lose federal funding for services like abortions and gender-affirming care.
• Housing: Federal cuts could further strain affordable housing initiatives, with NYCHA and Section 8 programs particularly vulnerable.

Economic and Infrastructure Concerns

The report warns of significant economic challenges:

• Tariffs and Immigration Policies: Increased tariffs and mass deportations could worsen inflation, labor shortages, and construction costs, particularly as NYC faces a historic housing shortage with a rental vacancy rate of just 1.4%.
• SALT Deduction Cap: While repealing the State and Local Tax (SALT) deduction cap could benefit high-income residents and improve NYC’s competitiveness, the benefits would largely favor wealthier individuals.
• Infrastructure Funding: Key projects like the Gateway Tunnel and Second Avenue Subway face potential delays if federal funding is withheld. Additionally, NYC’s congestion pricing plan, which is set to raise $15 billion for the MTA, could be blocked by a Trump-led Department of Transportation.

Impact on Vulnerable Populations

The report emphasizes that NYC’s most vulnerable residents would bear the brunt of many policy changes:

• Immigration: Trump’s proposed “mass deportations” could target undocumented residents and mixed-status families, tearing apart communities and worsening labor shortages.
• Reproductive Rights: Federal restrictions on abortion care and medication could undercut newly codified protections in New York State’s constitution.
• Gender-Affirming Care: Federal funding for gender-affirming surgeries and Medicaid coverage could be stripped, impacting thousands of transgender and nonbinary New Yorkers.
• Workers’ Rights: Rollbacks on union protections, wage standards, and workplace safety regulations would hit NYC’s heavily unionized workforce particularly hard.

A Call for Preparedness

Comptroller Lander’s report urges city leaders to act quickly to mitigate these risks. Recommendations include expediting congestion pricing implementation, defending sanctuary city policies, and preparing legal challenges to counter federal actions. The report underscores that while many proposed changes would require congressional approval, the Trump administration could use executive power to implement significant programmatic restrictions.

“The risks to New York City’s economy, infrastructure, and vulnerable populations are clear,” Lander wrote. “We must take proactive steps to safeguard our city’s resources, values, and people.”

Looking Ahead

This assessment comes as New York City braces for potential federal overreach. By identifying vulnerabilities and outlining a path forward, Comptroller Lander’s report aims to strengthen local resilience in the face of political and economic challenges. For a city that prides itself on diversity, progressivism, and inclusivity, the stakes couldn’t be higher.