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By Alia Shoaib
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New York City Mayor Zohran Mamdani, who took office at the start of the year, was elected on a platform promising a sweeping affordability agenda that included freezing rents, making groceries cheaper and expanding housing assistance.
In his first nine months, his administration has moved quickly to turn some of those campaign promises into policy, but has come up against several legal challenges along the way.
Pied-à-terre Tax
Mamdani introduced a pied-à-terre tax that would charge an extra annual tax on homes in New York City worth more than $5 million, or condos and co-ops worth more than $1 million, if they are not used as the owner’s primary residence.
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This policy has become Mamdani's latest to face legal challenges. A judge ruled Tuesday that the city failed to follow required procedures before mailing tax notices to those who could be affected, finding the rollout violated recipients’ due process rights, and ordered the previously mailed notices to be canceled.
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The ruling did not strike down the tax itself, and the judge said the city can still impose it by posting a corrected list of affected properties and sending out new notices in compliance with the law.
The city immediately appealed the ruling, triggering an automatic stay that allows it to continue the rollout while the legal challenge proceeds.
Separately, casino owner Steve Wynn and former Trump administration official Wilbur Ross have sued to challenge the constitutionality of the tax.
Matt Rauschenbach, a spokesperson for the mayor, told Newsweek in an emailed statement: "The pied-à-terre surcharge is about a basic principle of fairness: If you can afford a luxury second home in New York City, you can afford to pay your fair share for the schools, streets and parks that make this city work."
"Today's decision is wrong, and we will invoke a stay of the injunction. With a stay, we will continue implementing the surcharge fairly, efficiently and in full compliance with the law, as we have since day one," he said.
Rauschenbach also said the administration was "fighting to deliver for working New Yorkers," adding: "The ultra-wealthy are fighting in court to avoid paying their fair share. They have filed lawsuit after lawsuit to protect their privilege, and we will not back down."
Rent Freeze
One of Mamdani’s key campaign pledges was to freeze rents for New York City’s roughly 1 million rent-stabilized apartments.
The city’s Rent Guidelines Board voted in June for no rent increase on one- and two-year leases starting October 1.
Landlords then sued to block the freeze, arguing that the board was improperly influenced by Mamdani and did not independently consider the financial pressures facing property owners when making the decision.
The city and the board deny that, saying the board followed the required process and acted independently.
The lawsuit is ongoing, with a judge ordering City Hall and the board to turn over emails and text messages as part of the case. The freeze has not been blocked, and is still set to take effect October 1.
City-Run Grocery Stores
To address rising food costs and affordability, Mamdani announced a plan to open five city-owned grocery stores by 2029, one in each borough, where items would be sold at below retail prices. He said the plan would cut an "average grocery bill by 15 percent."
The plan is facing multiple lawsuits from groups representing independent grocers, who argue that the city’s ability to offer subsidized prices would make it difficult for smaller businesses to compete.
One federal lawsuit filed by the National Supermarket Association also alleges that the plan violates federal antitrust laws. The city says the stores are intended to make groceries more affordable and has defended the plan’s legality.
Elite-School Admissions Changes
New York City’s elite public high schools primarily admit students based on an entrance exam, but a separate Discovery program reserves some places for students from disadvantaged middle schools who narrowly miss the usual cutoff.
An Asian American parent whose son was denied admission to a high school has sued, arguing that the program unfairly disadvantages Asian American students.
The program predates Mamdani, but his administration is defending it. On Monday, Supreme Court Justice Sonia Sotomayor denied the plaintiff’s emergency request to admit her son to Stuyvesant High School while her appeal proceeds in the Second Circuit. The decision did not resolve the merits of her challenge to the admissions policy.
CityFHEPS Expansion
CityFHEPS is New York City’s rental assistance program for low-income residents.
A 2023 package of laws, which predates Mamdani’s term, would have expanded eligibility to more people facing eviction or homelessness.
The Adams administration refused to implement the expansion, largely citing its high cost, prompting a legal battle.
The Mamdani administration initially continued that legal fight after taking office, before negotiating a deal with the Council in June to end the lawsuit and create a more limited expansion of rental assistance.
Mamdani Leads Challenge to Trump Immigration Rule
Unlike with the other legal challenges, Mamdani and New York City are leading a coalition of cities and counties suing the Trump administration over a rule change they say could make it harder for lawful immigrants to obtain green cards or visas.
The federal rule expands the public benefits that immigration officers can consider when deciding whether someone is a "public charge," including programs such as Medicaid or food assistance. Being deemed a "public charge" can be grounds for denying a green card or visa.
Mamdani has argued that the rule could discourage people from using social services for fear of being deemed a "public charge," potentially putting their health and well-being at risk.
The rule took effect on September 18, and Mamdani's NYC-led lawsuit is still pending.
Contact Newsweek editors on this story: Ben Kelly and Mike Hirst.
Update 10/5/26, 6:06 a.m. ET: This article was updated with comment from Matt Rauschenbach.
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