New York City's socialist mayor Zohran Mamdani is planning to spend $70 million on a 'feasibility study' into launching government-owned grocery stores, reports say.
The mayor, 34, has cried poverty since taking office as he threatens to raise taxes across the Big Apple to fund his projects, claiming he was left with a huge $5.4 billion financial black hole by his predecessor Eric Adams.
But sources tell the New York Post that Mamdani is set to spend $70 million to fund the Economic Development Corporation, which will scout potential locations for his city-run grocery stores.
The stores were a central pillar of Mamdani's mayoral run last year, where he had claimed he could roll out the project for just $60 million in total.
Mamdani claimed the stores will keep grocery prices low because they would not pay property taxes or rent, and would be run by the government instead of by a for-profit company.
But his plans to splash out to merely see if they are 'feasible', while potentially raising property taxes, have sparked anger - with a source describing it as a 'textbook limousine socialist move.'
'It’s ridiculous!' the source told the Post.
Mamdani property tax rises of 9.5 percent across the board have been widely perceived as a way to pressure New York Governor Kathy Hochul to support his wealth tax proposals.
He warned earlier this month that if his plans to raise taxes on all seven-figure earners and large corporations are not backed, he may be forced to tax city property owners instead to make up the cash.
New York City's socialist mayor Zohran Mamdani is reportedly planning to spend $70 million on a 'feasibility study' to launch government-owned grocery stores
Mamdani is set to spend $70 million to fund scouting for the grocery stores - which he previously claimed in his mayoral run would cost just $60 million in total to launch
The insiders said they had reviewed preliminary budget documents that put the feasibility study's cost at $70 million, but said there were no concrete details as to how the stores would be operated day-to-day.
A Democratic source told the outlet: 'Overspending tens of millions of dollars on a study to look at a thing rather than actually spending the money on people is a textbook limousine socialist move.
'Mamdani is going to be the first mayor to spend money on a study on how to do his job.'
The mayor's plans to introduce his 'tax the rich' plans have struggled since taking office, as Hochul has resisted backing the proposal ahead of a re-election fight this year.
Earlier this month, Mamdani said he was stunned to open up the city's coffers to find a $5.4 billion hole, as he told a press conference: 'We inherited a historic budget gap.'
The Daily Mail has contacted Mamdani's office for comment on reports of his plans for the expensive 'feasibility study.'
Mamdani property taxes rises of 9.5 percent across the board have been widely perceived as a way to pressure New York Governor Kathy Hochul to support his wealth tax proposals - which she has so far resisted ahead of a re-election fight this year
After Mamdani's property tax threats, real estate experts warned the proposal is a numbers-defying misstep that could push rents higher and speed up the exodus of taxpayers to lower-tax states such as Florida and Texas.
'Even the discussion of a 9.5 percent hike is enough to influence buyer behavior and cause irritations in the market,' Douglas Elliman's Ben Jacobs told Fox News Digital.
'Some buyers have considered Nassau, Westchester, Long Island, and even Florida or Texas as alternatives because they just don't agree with [NYC] politics.'
He continued: 'Higher corporate and wealth taxes can trigger a chain reaction.
'Reduced investment and relocation of high earners shrink the city's tax base, which often indirectly affects middle-class households.
'Even if they aren't the direct target, over time these economic ripples can influence affordability, property values and access to services.'
