In the aftermath of his mayoral victory, Zohran Mamdani is continuing to push for his signature campaign promise: eliminating bus fares across New York City. But with Governor Kathy Hochul publicly ruling out tax increases, questions remain over how the proposal, which would require an estimated $650–700 million annually, could realistically be funded.
In a recent interview, Mamdani argued that the “clearest ways” to raise the required revenue lie in new taxes at the state level. “I think that the two clearest ways to raise that money is through the raising of the state’s corporate tax,” he said. When the interviewer reminded him that the Governor had already rejected that approach, Mamdani added that taxing “those who make more than a million dollars a year or more” would also be a viable option.
Pressed again on the Governor’s refusal, he maintained that the debate should focus on commitment, not mechanism. “If there are other ways to raise this funding, the important fact is that we fund it, not the question of how we do it, but that we do it,” he said.
Q: “How are you getting the $700M to make the buses free if the Governor is not for raising taxes?”
MAMDANI: “Through the raising of the state’s corporate tax.”
Q: “But she said no…”
MAMDANI: “The most important fact is that we fund it, not the question of how we do it.” pic.twitter.com/rFiaHPAdSE
— Chief Nerd (@TheChiefNerd) November 20, 2025
A Plan at Odds with Political and Fiscal Reality
However, the path to implementation is fraught with obstacles that extend beyond political disagreement.
The most significant barrier is that the MTA is a state-controlled authority, meaning decisions on fare collection fall squarely under the jurisdiction of the Governor, not the Mayor. Following Mamdani’s victory, Governor Hochul publicly affirmed that she has no intention of eliminating bus fares, a position that analysts say makes the mayor-elect’s plan “virtually impossible” to enact.
Furthermore, the proposal runs up against the MTA’s own financial structure. The agency’s bond covenants include restrictions on changes to its funding that could impair its ability to operate and meet its debt obligations. Bus fares are a key revenue stream, and moving away from them could create “unanticipated fiscal challenges,” potentially spooking investors and complicating the agency’s ability to borrow money.
Mass transit operators across the United States are already struggling to balance their budgets, with riders being heavily subsidized. Eliminating a primary source of revenue would require not only replacing the lost funds but also ensuring the new funding source is stable and sufficient to satisfy the MTA’s legal and financial commitments.
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