Mamdani warns of $12B NYC shortfall, blames Adams amid meme coin fallout

New York City Mayor Zohran Mamdani said in a Wednesday press conference that the city faces a $12 billion budget shortfall over the next two fiscal years and largely blamed former Mayor Eric Adams for chronic underfunding of essential services. Mamdani accused Adams of underbudgeting services such as rental assistance, shelter operations and special education, saying “that imbalance has hollowed out our city’s finances” and that the shortfall represents a scale greater than the Great Recession.

According to the mayor’s office, for Fiscal Year 2026 Adams budgeted $860 million for cash assistance while current projections put costs near $1.7 billion. Mamdani also criticized former Governor Andrew Cuomo and cited a CUNY Institute report that found between 2021 and 2022 New York City contributed 54.5% ($68.8 billion) of state revenues and received 40.5% ($47.6 billion) of state funding.

Cuomo did not respond to the accusations, the mayor’s office said. Adams rejected Mamdani’s claims on X, writing that he “didn’t leave a ‘budget hole.’ I left over $8 BILLION in reserves” and noting that every budget passed under his administration was approved by the City Council.

Adams left office less than a month ago and has since focused publicly on issues he described as rising antisemitism and anti‑American sentiment. The dispute has coincided with scrutiny of a meme token Adams launched on January 12 called NYC.

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