This is a developing story. Details are continuing to emerge and this article will be updated as additional information becomes available.

Mayor Zohran Mamdani took to the stage early this afternoon to address what his administration is calling the “Adams Budget Crisis,” outlining what he described as years of deferred fiscal risk that have left New York City facing a significant structural imbalance beginning in Fiscal Year 2026.

In a presentation delivered with supporting budget slides, Mamdani argued that decisions made under former Mayor Eric Adams and former Governor Andrew Cuomo created the conditions for what he described as a stunning deterioration in the city’s financial position. He said the imbalance was not the result of a single shock, but rather the accumulation of choices that relied on short-term fixes while postponing necessary corrections.

Mamdani said New Yorkers “give an immense amount to the city government, and receive a remarkably small amount back,” framing the crisis as both a fiscal and governance failure. He pointed to early internal reviews of Adams-era budget plans showing that projected gaps were significantly understated. According to the presentation, Adams’ former planned budget cuts revealed that early analysis had the Adams administration facing budget gaps twice as high as initially anticipated.

Over the course of the Adams administration, Mamdani said, gaps in fiscal budgeting reached more than $7 billion, as recurring costs were funded with temporary resources and long-term obligations were pushed into future fiscal years. He noted that the size of today’s projected gaps now exceeds those faced during the Great Recession, calling the moment a “historic challenge” for the city’s finances.

“Adams kicked the can of responsibility down the road… he ignored major projections.. Leaving a massive $3 billion hole in fiscal year 2026,” Mamdani said during the briefing. “He made the deliberate choice to under budget.”

Looking ahead, Mamdani said his administration intends to release a preliminary budget in February that balances both Fiscal Year 2026 and Fiscal Year 2027, as required by law. He said the proposal will focus on correcting baseline assumptions rather than relying on one-time measures.

The administration is pledging to find efficiencies and eliminate waste, Mamdani said, adding that his team refuses to let failures of the past define the future.

While specific policy adjustments were not detailed in the presentation, city officials indicated that the February budget will mark the first step in addressing what they described as a multi-year fiscal reset rather than a temporary patch.