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Mamdani aide calls for redistributing 'money and power' to make New York more affordable

"Private sector capture extracts wealth and tilts programs away from public welfare."

New York Gov. Kathy Hochul.

Photo Credit: Getty Images

New York State Gov. Kathy Hochul's $1 billion energy rebate program is reaching households across New York, but senior members of Mayor Zohran Mamdani's administration have emphasized that one-time payments won't solve high living costs.

Here's what to know

At a New York City Policy Forum event on affordability, Mamdani chief of staff Elle Bisgaard-Church and Lina Khan, former Federal Trade Commission chair and chair of the city's Economic Development Corporation board, addressed the issues directly, amNY reported.

Both maintained the city shouldn't rely on one-off payments to tackle its cost-of-living problem.

Bisgaard-Church and Khan made those remarks as state energy rebate checks were being sent to millions of New Yorkers to help with utility bills and other household costs.

Although neither specifically referenced Hochul's rebate initiative, Bisgaard-Church contrasted temporary aid with longer-term structural reforms.

"Means-tested programs segregate and encumber people. Private sector capture extracts wealth and tilts programs away from public welfare, and one-time handouts disempower people," she remarked.

Bisgaard-Church added that the administration's strategy starts from the idea that the city's affordability problems can only be addressed by redistributing "money and power."

Khan likewise said that Mamdani's affordability plan targets the underlying forces driving prices up.

More background

Hochul has presented the rebate checks as immediate aid to households dealing with higher utility bills and other expenses.

"We're putting money directly back in New Yorkers' pockets by sending energy rebate checks to millions of families as part of our affordability agenda," she said when announcing the program.

Beyond the checks, Hochul's affordability package includes utility ratepayer protections and tax cuts for middle-class New Yorkers.

The contrast stands out because Hochul, a moderate Democrat, and Mamdani, a Democratic Socialist, have nevertheless worked closely on child care, another major cost for families.

Expanding free child care was a key Mamdani campaign pledge, and his administration wants to establish it before the end of his first term.

What's being done?

The most visible state action is distributing rebate checks to millions of New Yorkers.

Those payments are being rolled out alongside other Hochul policies meant to ease household financial strain. Her office has said ratepayer protections and tax cuts for middle-class residents are also part of her affordability strategy, along with expanded child tax credit and child care.

The ideological disagreement is less about whether affordability matters than about whether a rebate check provides meaningful assistance.

For Bisgaard-Church, the alternative is an affordability agenda centered on universal public services, stronger unions, and collective ownership instead of short-term cash relief.

Khan argued that the city's version also means challenging corporate power, broadening public services, and bolstering protections for workers and tenants.

"This is not as much about one-time checks. This is not about one-time tax breaks," Khan explained. "It's really about how do we address some of the upstream drivers."

Where can I learn more?

The affordability debate in New York is showing up in fights over housing costs and utility policy.

• In Kingston, retirees say a landmark 15% rent cut never arrived despite a state ruling.

• New York will probe every tenant heat complaint after the state closed thousands under its old policy.

• New York expanded a 6% energy bill guideline to millions of middle-income families.

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