Governor Kathy Hochul says the MTA hit an all-time record with $15.8 billion in capital commitments in 2025, the biggest single-year infrastructure investment in agency history—powered in part by over $5 billion tied to congestion pricing revenues—to push forward new subway and rail cars, modern signals, ADA accessibility, buses, and major expansion projects across the system. Highlights include Second Avenue Subway Phase 2 tunneling moving ahead on time and on budget, a key Interborough Express contract that shifts the Brooklyn–Queens line from planning to active development, and signal modernization on the Fulton & Liberty A/C lines using a new delivery model that’s 33% cheaper per mile than past upgrades. The MTA also points to measurable “delivery” wins—projects coming in below estimates, 41 elevator replacements, new accessible stations, and megaproject progress like the Park Avenue Viaduct replacement finished 21 months early and $93M under budget—framing the message as: congestion pricing money is being reinvested directly into a faster, more reliable, more accessible transit network for millions of riders.
Governor Hochul Announces MTA Sets Record With $15.8 Billion in Capital Commitments in 2025
Governor Kathy Hochul today announced that the Metropolitan Transportation Authority (MTA) made a record $15.8 billion in capital commitments in 2025, marking the largest single-year investment in transit infrastructure in the agency’s history. The commitments advance critical accessibility upgrades, state-of-good-repair work, and major megaprojects across the system, including more than $5 billion made possible through Congestion Relief funding. Projects advanced also included the first round of investments made possible by the MTA’s historic 2025-2029 Capital Plan, which was fully funded by Governor Hochul and the state legislature in the FY26 Enacted State Budget.
“New York is investing in transit like never before, with record levels of investment being made to upgrade our existing system and to bring better transit to more communities,” Governor Hochul said. “The historic year for capital investments at the MTA — including $5 billion in projects made possible by congestion pricing — will improve the commutes of millions of New Yorkers and will ensure that this lifeblood of the entire region is able to deliver for riders for years to come.”
MTA Chair and CEO Janno Lieber said, “This record year of commitments cements C&D’s status as a top-tier infrastructure developer. New Yorkers want to know where congestion relief revenues are going — the answer is right back into the transit system with new train cars, modern signals and more ADA elevators. Thank you, Governor Hochul!”
This historic year for capital awards includes investments across the transit system to improve reliability and accessibility, along with targeted investments in system expansion.
Signal improvements: $2 billion
Rolling Stock: $6.6 billion
Expansion: $2.7 billion
Accessibility: $500 million
Bus upgrades: $500 million
State-Of-Good-Repair & other program support: $3.4 billion
The MTA also awarded a significant $166 million contract for engineering and design of the Interborough Express last August, which advanced the project from planning to active phase. The MTA’s 2025-2029 Capital Plan includes $2.75 billion for this transformative transit expansion project between Brooklyn and Queens.
Thanks to funding from congestion pricing, major projects are advancing, including:
Second Avenue Subway Phase 2 Contract 2 for tunneling. This major expansion is advancing on time and on budget.
Signal Modernization on the Fulton & Liberty AC lines in Brooklyn and Queens. Thanks to a new delivery approach, this project is 33 percent cheaper on a per-mile basis than prior signal modernization projects.
Accessibility upgrades at 7 stations, including the Bryant Park Complex on the BDFM7 trains. These accessibility projects came in 6 percent below engineering estimates.
In addition, 2025 saw progress on the MTA’s new 2025-2029 Capital Plan. This includes new contracts for over 300 new train cars on the Long Island Rail Road and the exercise of an option to purchase 270 additional electric buses for the NYC Transit bus fleet.
The record-breaking year surpasses the previous mark set in 2022, when $11.4 billion in contracts were awarded.
MTA Construction & Development President Jamie Torres-Springer said, “This year’s record-setting numbers are the latest proof that the new MTA is delivering the capital program better, faster, and cheaper. From state of good repair and accessibility upgrades to signal modernization and major expansion projects, we are advancing projects all across the region that will improve the lives of New Yorkers for a generation.”
In addition to the record-setting commitments, the MTA completed $6.7 billion in projects in 2025, trailing only 2023’s $7.1 billion as the strongest year for capital project completions.
Customers saw major benefits throughout the system in 2025, with 41 elevator replacements and 10 new accessible stations across the subways and railroads. That record setting number of replacements saw the average project duration drop by more than 2 months.
Other major projects completed included circulation improvements at Grand Central as part of the 42 St Connection program, which saved $46.5M, the opening of New York City’s new Rail Car Acceptance Facility in Brooklyn, and the rehabilitation of the lower level main span deck of the Verazzano-Narrows Bridge. In addition, the MTA awarded a contract to Kawasaki last fall to construct 378 new R268 subway cars, which will ultimately replace nearly 50 year-old cars and improve reliability and performance.
Megaprojects also made major advances. The first phase of the full replacement of the Park Avenue Viaduct — the elevated steel structure that carries four Metro-North Railroad tracks and serves all Metro-North trains traveling into and out of Grand Central Terminal — saw bridge replacement completed 21 months ahead of schedule and $93 million under budget. Further south, additional savings were achieved during the rebuilding of the Grand Central Train Shed that holds up Park Avenue and the surrounding skyscrapers above Metro-North tracks near Grand Central, which came in $20 million under budget in its first phase and has secured $75 million in private funding for the second phase.
Appearing live in studio on PIX11 News on January 29, 2026, Mayor Mamdani addressed New York City’s reported $12 billion budget deficit, arguing it will take an “all-of-the-above” plan: pressuring Albany for a better revenue-share deal, seeking higher taxes on millionaires and highly profitable corporations, and launching a citywide hunt for operational efficiencies. In a made-for-TV moment, he signed an executive order on-air requiring every agency to appoint a Chief Savings Officer within five days and deliver a savings/efficiency review within 45 days, while insisting service cuts are a last resort unless state support and tax policy don’t change. He also condemned the car-ramming attack at 770, calling antisemitism a present-day threat, and said final interviews are underway for his Mayor’s Office antisemitism post.
New York. Mayor Mamdani Appears Live on PIX 11
Dan Mannarino: Mayor Zohran Mamdani has painted a grim picture for New York City’s budget, which now has a $12 billion budget deficit to fill. Mayor Mamdani pointed the finger at previous administrations, while saying that he will deliver an on-time, balanced budget on February 17th. So, the question is how? The mayor is joining me now live to talk about this and make an announcement. Mr. Mayor, great to see you.
Mayor Zohran Mamdani: Great to see you as well. Thank you for having me.
Mannarino: Of course, and great to have you here in studio. I think it’s your first as mayor so it’s great to have you here. Before we get to the announcement and the budget, I do want to talk about what we saw play out in Brooklyn last night at the synagogue there. Any indication as the investigation plays out that that individual is looking to commit a hate crime?
Mayor Mamdani: So, it’s currently being investigated. I have to say, I was there on the scene last night at 770 Chabad World Headquarters and it was a horrifying incident where a man repeatedly and intentionally crashed his car into the building and I am so thankful that no one was hurt and we know that this is a building that has immense meaning to so many Jewish New Yorkers and those across the world.
And yesterday’s attack also took place on the yahrzeit of Rabbi Schneerson and the leadership of Rabbi Menachem Mendel Schneerson, and this is just a day after the day when we remember the victims of the Holocaust, and we know that antisemitism is not simply something of the past to be learned about. It is a living, breathing thing that we have to combat every day.
Mannarino: Today, the City Council is expected to announce a task force to fight antisemitism and the question for you is: Have you found somebody to lead your own Office to Combat Antisemitism within the Mayor’s Office? When can we expect to see that up and running?
Mayor Mamdani: So, we are actually in our final interviews for that position. And that is going to be a key position that delivers on our commitment to root out antisemitism across the five boroughs, and make this a city where Jewish New Yorkers are not just safe, but frankly celebrated and cherished.
Mannarino: Sometime next week?
Mayor Mamdani: We’re working on the timeline but it is in the final stages.
Mannarino: Okay Mr. Mayor, and you are here today to talk about the big announcement, which is a $12 billion deficit. You said the city has not seen something like this since the Great Depression. You said you were given a poison chalice by previous administrations. So on behalf of so many New Yorkers who heard that noise and that news, what is the answer to bring So on behalf of so many New Yorkers who heard that noise and that news, what is the answer to budget down on time and on budget?
Mayor Mamdani: So, I think first, as you said, this is [a] $12 billion fiscal deficit. The last time New York saw a fiscal crisis anywhere close to this was the Great Recession. And yet, this actually eclipses that. This is a greater deficit than we saw at the time. It’s going to require an all-of-the-above approach. So, we said, this will require the city’s relationship with the state [to] change. What I mean by that is, today the city contributes 54.5 percent of the state’s revenue [and] receives 40.5 percent in return. The second is going to require a relationship change between the city and its wealthiest residents and most profitable corporations.
I’ve spoken a lot with you across New York City about how I think we should raise income taxes on those who make a million dollars or more by two percent, [and] how we should raise corporate taxes on the most profitable corporations. The third thing it’s also going to require is the city pursuing savings and efficiencies within its own operating budget. And so. that is something that I’m actually here to speak to you today about also, is the creation of savings officers within every single agency that will be tasked with assessing the efficacy of programs we have, the efficiencies that we currently have or are being denied, and what steps we need to take to make the kinds of changes to bring us back to a firm financial.
Mannarino: And you want that done yesterday. So, you have an executive order that you’re calling all city agencies to do right now in implementing and appointing these chief savings officers.
Mayor Mamdani: Yes, and that’s actually the executive order that I have with me right here. This is a directive that, within five days, every single agency head has to identify a chief savings officer. And then within 45 days, those officers have to come back to us with a full assessment of the savings that could be pursued, the efficiencies that we’re currently seeing, and the programs that frankly need to be sunsetted or are not effective.
Mannarino: Okay, so go ahead, put your John Hancock on that. And that will become officially an executive order as of this moment, right?
Mayor Mamdani: Yes, this is now an executive order, the first to be signed on PIX11.
Mannarino: There we go. So let me ask you what exactly that means. The previous administration, Eric Adams, cut from city agencies. For example, libraries were cut, right? Are you expecting agencies to look at some of these things and implement cuts? And how soon?
Mayor Mamdani: I think what we’re first talking about are efficiencies and savings. We’re talking about the things that we could be doing better.
Mannarino: Is that cuts?
Mayor Mamdani: No, I would say, cuts are a matter of last resort, right? We do not want to be cutting the services that New Yorkers are relying on. If the state does not change its relationship to the city, if it does not raise taxes on the wealthiest New Yorkers and the most profitable corporations, then all that leaves the city with, are the most painful tools. However, we want to do everything we can to ensure that those are not the tools we have to use.
Mannarino: But cuts could be on the table, as a last resort.
Mayor Mamdani: That is what we are left with if we are not able to change these relationships. That’s why we’re pursuing the relationship.
Mannarino: You talked a lot about Eric Adams and former Governor Andrew Cuomo, but the City Council was also involved in the budget-making process. Governor Kathy Hochul had four years to kind of implement some changes to Governor Cuomo’s budgets. Do you look at that as part of the reason we’re in this crisis, that there was failure on all levels?
Mayor Mamdani: I see the architects of this crisis being the prior mayor and the prior governor. I think that there have been steps taken in the past few years, especially under Governor Hochul’s leadership, to change some of that cost-sharing between the city and the state. It’s not been an exercise in cruelty towards the city coffers that we saw for about a decade. However, there’s more that needs to be done.
And what we have now, for the first time in a long time, is a directive from our own City Hall, from myself, to go to Albany and be honest and direct about what we need from Albany. That’s what we’re going to do.
Mannarino: What about President Trump? Does he play a role? Does he play a part in this crisis?
Mayor Mamdani: Well, I think President Trump has said himself in the Oval Office right after we had a meeting that the better New York City does, the happier he is. And what we’ve seen is that right now, New York City is in need of a change in its fiscal relationship with a number of the things I’ve listed, but also needs to be protected from some of the federal policies that are being put forward. And I’ve been honest about the fact that some of these proposals would devastate our city, and we’re going to fight them with everything that we have.
Mannarino: In the last couple days or weeks, have you had a conversation with President Trump about what he’s willing to send to New York or withhold from New York? As you go into the budget talks and negotiations now, knowing what you’re going to get from the federal government is huge. So, have you spoken to the president?
Mayor Mamdani: So, I keep those conversations between the president and myself private. What I will tell you, however—
Mannarino: When’s the last time you spoke to him?
Mayor Mamdani: Look, those are conversations that will always come back to New York City. And I think that that’s something that New Yorkers are expecting from me. And what they also know is that in a city of eight and a half million people, the wealthiest city in the wealthiest country in the world, we have one in four living in poverty. We have to find fiscal policy that lifts us all up.
Mannarino: What is your contingency? As you made that announcement, an hour later, Governor Hochul came out, and she said, “Newsflash, we’re not raising taxes in New York.” So, you had these conversations with the governor a number of times. You’re very complimentary to her, but she is adamant that they’re not raising taxes. So, if you don’t get that money, what is the contingency?
Mayor Mamdani: I think the first key thing is to make clear to New Yorkers why we need that money, how we got to this place. And some of [these] are the structural imbalances we’ve seen in our city’s fiscal health over many years. It would be all too easy to try and fix this budget. Only to get here next year. That’s why we’re looking for solutions that will last in the longer term, recurring ones, annualized ones. And so, we’re talking about these increased taxes on the wealthy.
Mannarino: She said no.
Mayor Mamdani: Look, I think politics is also an exercise in making the case and making clear what the stakes are. The tools that the city has, these are the most painful tools. We are talking about cuts. We are talking about property taxes, the things that I do not want to pursue. And yet, the scale of this fiscal crisis of $12 billion, this is not an ordinary crisis. This is not a mayor coming forward and saying, “It’s going to be a tough budget. “This is the likes of which we haven’t seen since the Great Recession. That requires an all of the above approach. That’s what we’re going to make clear.
Mannarino: So realistic[ally] [speaking], and you mentioned yesterday a number of times that you want to be really honest with New Yorkers and letting them know how we got to this point and what you’re planning to do about it. But there’s also a lot that you campaigned on, freezing the rent, fast and free buses. Could some of that take longer to implement, realistically talking, because of what we’re seeing?
Mayor Mamdani: I think this is a fiscal crisis that has to be [at the] front of mind for all of us. Now, I’m proud of the fact that we’ve already been able to advance our affordability agenda in the one month I’ve been in office. Day eight, we secured more than a billion dollars for universal child care. Freezing the rent is not something that requires a fiscal infusion. It’s a decision from the Rent Guidelines Board.
Making buses fast and free, the fast thing we’re already getting started on. And what I’ve said is that by the time I’m finished being mayor, they’re going to be free. What we have to deliver, however, in this very year, required by law, but also required just by being a good mayor, a balanced budget for this fiscal year [and for] the next fiscal year.
Mannarino: I’m up against the clock here, but yesterday you mentioned an AI chatbot that cost $500,000. It’s one of the things you thought was a waste of money. Can you name something else?
Mayor Mamdani: That’s exactly what this directive is about. What we want is to actually come to a number after looking at the budget. Because what we’re seeing, we’re talking about a budget of more than $115 billion. If I’m going to accuse the prior mayor of gross fiscal mismanagement in the budgeting process, we know that that likely extends to the expense side as well. And so we’re going to look through every agency to find every example, because when we are going to ask New Yorkers to commit themselves to a new era of politics we have to commit ourselves too. That’s what this is about.
Mannarino: If the governor comes up and says, “You know what, Mr. Mayor, I don’t want to raise the taxes, but I do want to find money. We made all this money from Wall Street, which she said, and we found some money for you to give to you.” Would that satisfy you?
Mayor Mamdani: I think that given the scale of this crisis, that’s not going to be a way to cover the entirety of it. Look, I’ll be direct with you. We’re encouraged by the results from Wall Street, by the news of bonuses. That would be something, if the deficit was smaller, I could say maybe this could cover it. But [for] $12 billion, there’s no news of bonuses or better forecasts that are going to get there. It’s going to require everything.
Mannarino: Mr. Mayor, I appreciate you coming here, talking straight with New Yorkers, signing the executive order. I think it’s the first that we’ve had here at PIX11 where legislation is signed right here on our air. Good to see you.
Mayor Mamdani: Good to see you as well.
Mannarino: Want to go do the weather?
Mayor Mamdani: Stay warm, stay inside, stay safe.
Mannarino: There you go. Mr. Mayor, thank you very much.
For a few tense minutes on live television, Crown Heights looked like a movie set for a city in crisis: flashing lights, police tape stretching across blocks, and squads of NYPD vehicles locking down the streets around one of Brooklyn’s most recognizable religious landmarks.
The breaking-news cut-in centered on Chabad-Lubavitch World Headquarters, known worldwide simply as “770.” According to the report, a driver was taken into custody after a car allegedly rammed the building’s side entrance—not once, but repeatedly.
Video that quickly spread online captured the disturbing rhythm of it: the vehicle hits the door, reverses, then slams forward again—over and over—until the entrance area is left visibly damaged and the crowd outside erupts in shock.
Police from the 71st Precinct arrived swiftly, taking the suspect into custody and transporting him for questioning. In the first updates, officials said there were no reported injuries, a detail that stood out given the chaos and the crowd size that night.
And that’s what made the timing feel especially heavy.
A community representative noted that this wasn’t just any evening at 770. The incident unfolded during Yud Shevat, a major date on the Chabad calendar that draws large gatherings—including visitors from around the world—to Crown Heights. In other words: the building wasn’t quiet. It was filled with people.
As investigators worked the scene, early reporting said authorities were evaluating the crash as a possible hate crime, especially after witnesses described the driver allegedly shouting hostile language. Officials also moved quickly to calm fears on the ground: the bomb squad checked the area and found no explosives, according to reports.
By the end of the live segment, the visuals were still the same—tape, lights, police—only now with the clearest detail viewers wanted: the driver was in custody, and the investigation was just beginning.
Car Rams NYC’s Chabad HQ “770” in Crown Heights — Driver Taken Into Custody (VIDEO)
January 28, 2026 White House paper argues that phasing out state personal income taxes could strengthen growth and competitiveness—especially compared with high-tax states that have experienced out-migration. It lays out two transition approaches: full revenue replacement by broadening the sales-tax base, and an alternative that also limits spending growth. The paper then models projected, state-by-state effects on GDP, wages, new business formation, and the movement of higher-income taxpayers.
The Economic Impact of State Income Tax Elimination
For years, no-income-tax states like Texas, Tennessee, and Florida have often led the pack in attracting and retaining residents looking to put down roots where they do not have to split ownership over the fruits of their labor with state government. In particular, of the 9 states that currently have no personal income tax, 5 of them rank amongst the top 10 states in terms of GDP growth over the past decade and 4 of them rank amongst the top 10 states in terms of net migration rates from other states.[1] At the other end of the spectrum, high-income-tax states like California, New York, and New Jersey have suffered a population exodus as people vote with their feet and wallets. Perhaps seeing Texas, Tennessee, and Florida as models, an increasing number of states with income taxes have indicated an interest in transitioning away from the income tax through some combination of belt-tightening and finding less damaging forms of tax collection.
This paper studies the economic impacts and feasibility of states phasing out their income tax. Recognizing that states have to collect tax revenue somehow, the analysis here studies two different scenarios. In the first scenario, the state pursues full revenue replacement by broadening the sales tax, leaving the baseline forecasted growth of total tax revenue unchanged. In the second scenario, the reform combines a broader sales tax base with a limit on spending growth that maintains government services at current levels instead of allowing their continued expansion.
The quantitative analysis in this paper is done on an individual state-by-state level, studying the impact of these two reform scenarios on key economic outcomes like GDP, wages, business startup activity, and the migration of high-income taxpayers. This paper also reports the sales tax rate needed to accomplish the reform under each scenario (base broadening only; base broadening coupled with spending growth limits).
Key insights distilled from the economics literature include:
Income taxes are more economically damaging than sales or property taxes;
The harmful economic effects of state income taxes include outmigration, brain drain, stifled innovation and entrepreneurship, and reduced GDP;
The harmful fiscal effects of state income taxes include revenue volatility with “feast and famine” cycles, with states often gaining little or no new tax revenue from income tax hikes because of the negative economic effects they unleash.
Key findings from CEA’s analysis of state income tax phase-outs include:
A 1 to 1.6 percent increase in the level of GDP for the average state;
A 16 to 19 percent increase in new startups for the average state;
A $4,000 increase in the average wage;
A significant influx of new high-income taxpayers;
An average state sales tax rate of under 8 percent under full revenue replacement with no limits on spending growth;
An average state sales tax rate of 6.2 percent under a scenario with spending growth limits.
[1] Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, and Wyoming have no state personal income tax of any sort. Washington has no state personal income tax except on capital gains for certain high earners.
NEW YORK (Jan. 28, 2026) — New York City Mayor Mamdani laid out what he called a fiscal crisis “greater than the Great Recession,” saying the city is staring at a $12 billion budget deficit and promising an “all-of-the-above” response: aggressive efficiencies, new revenue from the wealthiest New Yorkers and major corporations, and a reset of the city’s fiscal relationship with Albany.
Speaking during a City Hall press conference, Mamdani repeatedly drew a bright line between “savings and efficiencies” and “austerity,” arguing New Yorkers should not be asked to accept degraded public services because of what he described as years of budget mismanagement.
What Mamdani says caused the $12B gap
Mamdani blamed the prior administration for what he described as “gross fiscal mismanagement,” alleging that real program costs were not transparently reflected and that expenses were pushed “off the books.” He told reporters his team is now “going through every single dollar” the city spends and that spending must be defensible.
“If it cannot be defended,” he said in substance, “it’s not a dollar that should be spent.”
CityFHEPS costs and the legal fight over eligibility
Asked specifically about CityFHEPS—a housing voucher program whose costs have been criticized as rapidly expanding—Mamdani said his administration requested more time to work on a settlement in the CityFHEPS case. He framed the goal as balancing medium- and long-term housing access with a sustained and balanced budget.
On whether City Hall would continue litigation to stop an expansion of eligibility, Mamdani said those talks were ongoing, without committing to a final yes-or-no answer.
“Efficiencies, not austerity”: what’s on the table?
Pressed on whether agency cuts, vacancy eliminations, or broad reductions could be coming, Mamdani repeated that he intends to pursue every available efficiency—but not in ways that “come at the expense of working New Yorkers.”
When asked for concrete examples, he offered a small but telling illustration: a city AI chatbot he described as “functionally unusable” that cost roughly $500,000, calling it a sign of money spent without accountability. He emphasized that such examples do not close a $12B gap by themselves, but they point to a broader pattern he claims his team is now auditing.
Taxing the top 1% — and fighting for more from Albany
A major theme of Mamdani’s remarks was revenue.
He argued the city must consider raising taxes on the wealthiest residents and “the most profitable corporations,” and he defended a proposal to increase income taxes on the top 1% of New Yorkers by 2%.
He also pushed back on the idea that wealthier taxpayers would automatically flee, using a simple math example: for $1 million in annual income, a 2% increase equals $20,000 more in taxes—an amount he suggested is unlikely to drive relocation decisions for most high earners.
At the same time, Mamdani said the city needs to “recalibrate” its relationship with New York State. He cited an estimated $8 billion annual gap between what New York City contributes to state revenues and what it receives back, describing the imbalance as having grown over a decade through cost-shifting decisions he attributed largely to the Cuomo era.
Are NYPD cuts on the table?
On public safety spending, Mamdani said he is not entertaining cuts to essential services, including the NYPD. He acknowledged the need for savings and efficiencies (including longstanding attention to overtime spending), but insisted New Yorkers should not be left questioning whether critical city services will be delivered.
Will campaign promises be scaled back?
Asked whether the budget crisis forces him to revise campaign promises—previously estimated to cost about $10 billion—Mamdani said no, arguing the city should not allow past mismanagement to “dull” its ambitions.
He pointed to early progress on universal child care, saying more than $1 billion has already been secured toward that agenda and that his administration intends to “reckon with the mismanagement of the past” while still delivering on core commitments.
Timeline: when the detailed plan arrives
Reporters repeatedly asked for specifics—especially with the budget deadline looming. Mamdani said the city will deliver its preliminary budget on Feb. 17, 2026, and that the document will lay out the detailed steps to address the deficit. He added that City Hall will share additional specifics before then, including updated revenue assumptions tied to Wall Street bonuses and other receipts.
Cold-weather deaths and storm cleanup: other updates
Mamdani also addressed urgent quality-of-life and public health topics:
Cold-weather deaths: He said there had been no additional outdoor deaths since the prior update, described additional placements into shelter, and noted suspected hypothermia involvement in a majority of the deaths discussed—while stressing the official determination rests with the medical examiner.
Snow and bus stops: City Hall cited progress on clearing bus stop shelters—about 95% of sheltered stops cleared as of early morning—while noting property owners are responsible for many other areas and that the city is evaluating improvements for future storms.
SRG and protests: disbanding the unit
In a separate exchange, Mamdani reiterated his intent to disband the NYPD’s Strategic Response Group (SRG), saying he does not want a single unit combining counterterrorism responsibilities with policing of First Amendment protests. He said operational conversations with the police commissioner were underway and indicated SRG use would continue until those changes are implemented.
Mamdani’s message was clear: New York City’s $12 billion gap won’t be solved with one lever. He is promising a multi-front strategy—tightened spending discipline, new revenue at the top, and a larger fight over what the city receives from the state—while rejecting the framing that austerity and service cuts are inevitable.
Budget gap, CityFHEPS, and litigation
Q: The controller says CityFHEPS costs ballooned. Will you reflect those costs accurately in the preliminary budget, and will you continue litigation to stop expanding eligibility? A (Mamdani): He blamed the prior administration for budget and housing/assistance mismanagement, said the city asked for more time to work on a settlement in the CityFHEPS case, and emphasized a goal of balancing housing access with a sustained, balanced budget. On whether eligibility will expand, he said the conversations are ongoing (no firm yes/no yet).
“Efficiencies” vs “austerity” (cost-cutting)
Q: You criticized prior cost-cutting, but you say you’ll find efficiencies. Are agency cuts/eliminating vacancies on the table? A: He drew a sharp line: savings/efficiencies ≠ austerity. He said they’ll pursue every possible saving but not at the expense of working New Yorkers, and they’re reviewing every dollar—if they can’t defend it, it shouldn’t be spent.
Q (follow-up): Can you name specific efficiencies now, with the budget due soon? A: He said the next weeks are about assessing full fiscal health, and gave one example of waste: a prior administration AI chatbot that was “functionally unusable” and cost about $500,000—not a gap-closer, but a sign of mismanagement and hidden/ignored true costs.
Q: If you want a “relationship reset” with the state, is it more than two tax increases? A: Yes—he framed it as a crisis “greater than the Great Recession,” requiring an all-of-the-above approach: internal savings, higher taxes on the wealthiest and most profitable corporations, and recalibrating the NYC–state relationship so the city gets what it’s owed.
Q: Is it wise to call for higher taxes when the Governor isn’t interested—won’t that leave you stuck politically? A: He argued the city is already stuck because of the deficit, and said they won’t default to making “those with the least” bear the burden. He defended raising the top 1% NYC income tax by 2%, including an anecdote suggesting the increase wouldn’t trigger mass flight (he illustrated it as $20,000 on $1M income). He also said the city will advocate aggressively in Albany rather than staying quiet.
Q: Are you asking Albany to “pick up the tab” for specific programs (e.g., childcare expansion) to fix the imbalance? A: He said the fix is the city receiving what it is owed, citing an annual imbalance of about $8 billion (what NYC contributes vs. receives). He pointed to Cuomo-era cost shifts as examples of burdens moved from state to city, and implied they’ll seek to reverse that pattern.
Q: Why should the governor give the city more money if you can balance the budget with “efficiencies”? Will the preliminary budget assume $X from the state? A: He said $12B cannot be solved by efficiencies alone. The solution must combine spending scrutiny plus new revenue and a new fiscal relationship with the state. He wouldn’t preview exact state-line assumptions before releasing the preliminary budget.
Revenue assumptions and “being conservative”
Q: Under Adams, conservative revenue estimates were used to justify cuts; then Wall Street/high-earner receipts came in higher. Are you being conservative now about Wall Street revenue/bonuses? A: He said they’re encouraged by reports of higher bonuses and increased revenue, but the $12B deficit is too large to be covered by that, so they still need structural solutions.
“Give more details” — timeline and the preliminary budget
Q: You say you’ll be transparent, but you’re not giving practical detail on cuts. What will New Yorkers actually face? And what have your talks with Governor Hochul been like? A: He said specifics will come with the preliminary budget on February 17, and that between now and then they will share additional specifics on the gap after updated revenues/bonuses, and on the savings they’re pursuing—while stressing they won’t use the crisis to justify pulling back essential services. On Hochul, he said he’s encouraged by the conversations and the relationship they’re building.
NYPD and public safety
Q: Are NYPD cuts on the table (especially overtime)? A: He said they are not entertaining cuts; they’re discussing savings/efficiencies without making New Yorkers doubt essential services will be delivered.
Campaign promises vs the deficit
Q: Do you need to revise campaign promises (estimated ~$10B), now with a $12B out-of-balance situation? A: He said no—they won’t let prior failures “dull” their ambitions. He cited early progress: over $1B secured toward universal childcare (he framed it as achieved very early in the administration). The message: fix past mismanagement, handle the present crisis, and still deliver a future where working New Yorkers aren’t priced out.
Cold-weather deaths update (separate topic)
Q: Any new information on cold-weather deaths? A: He said no additional outdoor deaths since last update; about 30 additional placements were made since the prior night; they suspect ~7 of 10 deaths had hypothermia as a factor; ~6 of 10 were known to DHS. He emphasized the medical examiner will determine official cause and described the 5–7 day post-autopsy timeline for results.
He also described visiting Bellevue (warming center) and joining outreach workers, sharing an anecdote about an older man’s personal story and praising city workers/outreach teams.
SRG (Strategic Response Group) and protests
Q: Are you asking Albany for the full $8B gap back? And you campaigned on disbanding SRG—would you do it, is it an “inefficiency,” would you replace it? A: He said he still believes SRG should be disbanded, and he’s in talks with the police commissioner about operational implementation. He framed the rationale primarily as policy/rights, not budget: SRG shouldn’t combine counterterrorism with responses to First Amendment activity. On the $8B question: he said they’ll share more details on the gap for this fiscal year and next once updated revenues/bonuses are accounted for, but reiterated the “all-of-the-above” approach.
Q (follow-ups): Did you know SRG would be at an anti-ICE protest last night? Are you concerned? Have you told NYPD not to use them at protests “for now”? A: He said SRG will continue to be used until they implement the operational change. He added NYPD must respond to protests and must do so in ways that respect First Amendment rights. He also said he commends New Yorkers protesting ICE abuses, referencing Minneapolis.
Q: Sidewalks/crosswalks/bus stops are still a mess days after the storm. Any new ideas for future storms? A: He said they’ll keep looking for ways to deliver for all modes of transit. He cited a stat: by 7:10 a.m., DOT cleared 3,227 bus stop shelters (~95% of ~3,400 with shelters). He noted property owners are responsible for many remaining stops and said the city is examining how to increase service levels. He praised city workers and noted the storm was followed by unusually severe cold (the coldest in at least eight years, per his remark).
Was the public misled under Adams?
Q: We used to hear “we must cut,” then Council restored things—was the public misled? A: He said Adams’s administration misled the public about the scale of the deficit and accused them of pushing real costs “off the books.” He contrasted that with his pledge to be open and honest about the true costs of services and what it will take to fix the problem.
Statewide fairness and progressive taxation
Q (final): The state taxes wealthy NYC people and uses revenue to help poorer upstate cities. Are you saying NYC should keep its wealth and forget the rest of the state? A: He said it’s important to care for needy New Yorkers statewide, but argued the cost-shifting wasn’t about helping upstate—it was about punishing NYC, describing the growing “chasm” over a decade and expressing hope for a new course.
On January 28, 2026, New York City Mayor Mamdani delivers a blunt warning: NYC is facing a serious fiscal crisis, with a budget deficit of at least $12 billion. He calls it the “Adams budget crisis,” alleging the prior administration systematically underbudgeted essential services—including rental assistance, shelters, and special education—creating what he describes as massive hidden gaps.
Mamdani also argues NYC’s finances were strained over years by a state–city imbalance, claiming New Yorkers contribute a larger share of state revenue than the city receives back. He cites independent projections (including city and state controllers) and says the true budget gaps are far higher than previously presented, framing the moment as more severe than the Great Recession-era gaps and over 300% above the pre-pandemic 10-year average in some years.
He promises a balanced budget within two fiscal years, rejects balancing it “on the backs of working people,” and signals bold solutions: resetting the fiscal relationship with Albany and taxing the richest New Yorkers and most profitable corporations—while pledging honesty, transparency, and clear communication about decisions ahead.
New York is betting big on “self-driving” science. Governor Kathy Hochul announced that Radical AI will open New York’s first fully autonomous materials science laboratory at the Brooklyn Navy Yard, building a new headquarters and AI-driven labs designed to run around 100 experiments per day. The $4 million project is backed by up to $2 million in performance-based Empire State Development tax credits and is expected to create 115 new high-paying jobs—as the company aims to compress years of materials discovery into months for industries like energy, aerospace, infrastructure, defense, and manufacturing.
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Governor Hochul Celebrates Radical AI Establishing New York’s First Fully Autonomous Materials Science Labs at the Brooklyn Navy Yard
Materials Science R&D Company Will Renovate New Headquarters and Build Advanced AI-Driven Labs
Project Will Create 115 New High-Paying Jobs and Catalyze New York City’s Growing Deep-Tech and Artificial Intelligence Sector
Supported by up to $2 Million in Performance-Based ESD Excelsior Jobs Program Tax Credits
Governor Kathy Hochul today celebrated Radical AI, a scientific research and development company focused on discovering novel inorganic materials, for establishing New York’s first fully autonomous materials science laboratory at the Brooklyn Navy Yard. The company will renovate and repurpose space in Building 20 to create a state-of-the-art headquarters and research facility capable of running approximately 100 AI-driven experiments per day. The $4 million project, supported by up to $2 million in performance-based Excelsior Jobs Program tax credits from Empire State Development (ESD), is expected to create 115 new high-paying jobs in the fast-growing fields of materials science and AI. This investment builds on New York’s statewide strategy to grow next-generation industries, expand high-wage job opportunities, and strengthen the state’s innovation economy.
“New York is leading the nation in turning cutting-edge research into real-world innovation and good-paying jobs,” Governor Hochul said. “Radical AI’s decision to establish the state’s first fully autonomous materials science laboratory at the Brooklyn Navy Yard strengthens our position as a global hub for artificial intelligence, advanced manufacturing, and deep-tech research. By investing in companies that push the boundaries of science and technology, we’re ensuring the discoveries that drive long-term economic growth are developed, scaled, and commercialized in this state.”
Empire State Development President, CEO and Commissioner Hope Knight said, “Radical AI’s decision to build New York’s first fully autonomous materials science lab at the Brooklyn Navy Yard underscores the strength and diversity of our innovation economy. This project brings together artificial intelligence, advanced research, and high-quality job creation in a field that touches nearly every sector of the global economy. With support from Empire State Development, Radical AI is helping ensure that the next wave of materials discovery, commercialization, and startup growth happens right here in New York City.”
Radical AI CEO and Co-Founder Joseph Krause said, “Our new facility will run materials experiments at a pace and scale that traditional R&D cannot match, capturing experimental data that makes our AI smarter over time in a continuous data feedback loop. Our mission is to compress decades of materials discovery into years or months, and we’re grateful to ESD for backing that vision.”
NYCREDC Co-Chairs Félix V. Matos Rodríguez, City University of New York Chancellor and William D. Rahm, CEO of Everview Partners, said, “New York City’s economic future depends on our ability to attract and grow companies operating at the cutting edge of science and technology. Radical AI’s expansion at the Brooklyn Navy Yard reflects the region’s unmatched talent pipeline, research capacity, and collaborative innovation environment. This project will not only create high-paying jobs, but also strengthen New York City’s position as a global center for AI-driven research, advanced manufacturing, and next-generation startup development.”
New York City Economic Development Corporation (NYCEDC) Senior Vice President of Partnerships Justin Kreamer said, “We are thrilled that Radical AI will establish New York’s first fully autonomous materials science laboratory at the Brooklyn Navy Yard, benefiting from New York City’s deep talent pool and contributing to its status as the applied AI capital of the world. Radical AI’s new state-of-the-art headquarters will create over 100 future-oriented jobs, serve as a key hub for AI experimentation and research, and deepen New York City’s commitment to sustainable materials innovation, joining impactful initiatives already under way such as Gotham Foundry.”
Assemblymember Steven Otis said, “Congratulations to Governor Hochul, NYS Empire State Development, and the research and technology innovator, Radical AI for the exciting news of the cutting-edge materials research lab that will be at the Brooklyn Navy Yard. Materials research, development, and testing are vital to our economic, environmental, and technology future. Radical AI is a leader in using AI to examine materials suitability for energy and technology innovation. This important research will give birth to new economic and growth opportunities and again highlights New York’s leadership in technology innovation. This announcement is also an example of the success of Governor Hochul’s focus on job expansion in technology industries and the synergy New York offers by bringing these companies to our state.”
Founded in 2024, Radical AI has grown from a small research team into a rapidly scaling company focused on accelerating the discovery of next-generation materials. Today, the company employs approximately 34 scientists, engineers, and technologists working at the intersection of AI, robotics, and materials chemistry. The company’s mission is to develop, test, and commercialize entirely new classes of materials that can transform a wide range of industries—from aerospace and energy to infrastructure, defense and manufacturing. Their autonomous technology combines AI and a self-driving laboratory to rapidly discover entirely novel materials that would otherwise take 10-to-20 years to develop. This approach enables faster innovation across industries such as energy, transportation, and advanced manufacturing, strengthening the city’s role in next-generation technology development.
Radical AI plans to convert an existing office space into a fully outfitted, advanced materials science lab equipped with specialized tools, gas lines, robotics systems, updated safety and organizational layouts, and essential infrastructure upgrades. Radical AI’s autonomous laboratory will focus exclusively on discovering new inorganic materials through AI-driven experimentation and R&D. The company’s high-throughput approach will accelerate the traditionally slow process of materials discovery by 370x, creating novel materials with applications across multiple industries.
With its expansion into the Brooklyn Navy Yard, Radical AI will further deepen its footprint in New York City and reinforce the city’s growing leadership in artificial intelligence, advanced manufacturing, and deep-tech research. This investment strengthens the city’s innovation ecosystem by pairing cutting-edge AI capabilities with world-class scientific talent, creating a new hub for materials discovery that will support startup formation, commercialization, and long-term economic growth across multiple industries. As materials science underpins everything from energy and transportation to defense and manufacturing, Radical AI’s presence at the Brooklyn Navy Yard positions New York City at the forefront of the next generation of technological breakthroughs.
Autonomous materials science combines AI, robotics, and advanced chemistry to rapidly discover entirely new materials that would otherwise take years to develop. This approach enables faster innovation across industries such as clean energy, transportation, and advanced manufacturing, strengthening the city’s role in next-generation technology development.
About Empire State Development Empire State Development is New York’s chief economic development agency, and promotes business growth, job creation, and greater economic opportunity throughout the state. With offices in each of the state’s 10 regions, ESD oversees the Regional Economic Development Councils, supports broadband equity through the ConnectALL office, and is growing the workforce of tomorrow through the Office of Strategic Workforce Development. The agency engages with emerging and next generation industries like clean energy and semiconductor manufacturing looking to grow in New York State, operates a network of assistance centers to help small businesses grow and succeed, and promotes the state’s world class tourism destinations through I LOVE NY. For more information, please visit esd.ny.gov, and connect with ESD on LinkedIn, Facebook and X.
About Radical AI Radical AI is a materials company combining AI and a self-driving, robotic lab to discover novel inorganic materials for mission-critical industries like aerospace, infrastructure, defense, energy and manufacturing. The company uses AI technology to screen billions of materials and identify the best candidates, synthesizes and tests these candidates in an autonomous lab, and captures valuable experimental data to improve future predictions in a closed-loop system. Radical has raised $55 million in seed funding led by RTX Ventures with participation from NVentures (NVIDIA), Noa, Eni, Infinite Capital, and AlleyCorp. The company is a Department of Energy partner in the White House Genesis Mission and holds an Air Force AFWERX contract to develop high-entropy alloys for hypersonic flight. For more information, visit radical-ai.com.
A West Virginia woman who worked as a public librarian has been arrested and charged after authorities say she used social media posts and videos to encourage or recruit someone to assassinate President Donald Trump.
What authorities say happened
The Jackson County Sheriff’s Office said Morgan L. Morrow, 39, of Ripley, West Virginia, was taken into custody after investigators reviewed online content they describe as soliciting violence—moving beyond political talk and into what they interpreted as a credible, actionable threat.
Local reporting citing the criminal complaint says investigators were alerted on January 25, 2026, to threats posted from a publicly accessible social media account attributed to Morrow. One post referenced the idea of finding a “sniper” to kill Trump—language deputies say they treated as a serious threat rather than hyperbole.
Investigation and arrest
According to the complaint described in local coverage, investigators and assisting officers went to Morrow’s residence, brought her in for questioning, and say she acknowledged authoring the post and that it was directed at Trump.
WDTV (a West Virginia TV station) reported that Morrow was arrested following what the sheriff’s office called an active investigation with “documented and troubling concerns,” adding the agency said its public post about the arrest was not intended as a political statement.
Charges and custody status
Authorities say Morrow was charged with one count of “terroristic threats” (often described in coverage as making or communicating a terroristic threat). She was reported held at South Central Regional Jail, with no bond set at the time of those reports.
Official reaction and public safety concerns
Jackson County Sheriff Ross Mellinger told MetroNews that investigators viewed the alleged posts as far more than venting, describing them as repeated statements across platforms encouraging violence.
Meanwhile, Fox News reported the Jackson County Public Library posted a statement distancing the organization from the alleged comments and saying the matter was being addressed internally.
What’s next
The case is now expected to move through the court process, where prosecutors will have to prove the elements of the alleged offense. As with any criminal case, the charge is an allegation, and Morrow is presumed innocent unless and until proven guilty in court.
Sources: 1) 18 U.S.C. § 871 — Threats against the President and successors (official text on govinfo.gov) https://www.govinfo.gov/app/details/USCODE-2011-title18/USCODE-2011-title18-partI-chap41-sec871 (cite: turn4search0) 2) 18 U.S.C. § 871 — version on the Law Revision Counsel website (official U.S. Code, uscode.house.gov) https://uscode.house.gov/view.xhtml?edition=prelim&num=0&req=granuleid%3AUSC-prelim-title18-section871 (cite: turn4search1) 3) DOJ Criminal Resource Manual 1528 — clarification on threats against the President (justice.gov) https://www.justice.gov/archives/jm/criminal-resource-manual-1528-threats-against-president-and-successors-presidency-against (cite: turn4search12) 4) U.S. Secret Service FAQ — How to report a threat and what the USSS investigates (secretservice.gov) https://www.secretservice.gov/about/faq/general (cite: turn4search2) 5) FBI — Threat Intimidation Guide (where to go/how to report threats) (fbi.gov) https://www.fbi.gov/investigate/counterintelligence/threat-intimidation-guide (cite: turn4search3) 6) FBI Tips — Official portal for submitting tips (fbi.gov) https://www.fbi.gov/tips (cite: turn4search11)
