Free Childcare and Luxury Tax

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Since the beginning of 2026, Zohran Mamdani has been mayor of New York City. The democratic socialist ran on a clear platform and is now starting to implement it. After around 100 days in office, the first figures show the direction: from autumn 2026 there will be 2,000 free kindergarten places, and a new tax on luxury real estate is expected to generate around $500 million annually.

Zohran Mamdani has been mayor of New York City since January 1, 2026. He describes himself as a democratic socialist and was elected by over 50% of voters in the metropolis. He ran on clear promises: free childcare, stricter laws for landlords and companies, and better public transport financed through higher taxes on the wealthy.

His critics, led by U.S. President Donald Trump, had doubted both his programme and its implementation. Now, after 100 days in office, it is becoming clear: he is laying the groundwork for many of his promises and already recording measurable successes.

2,000 free kindergarten places – expansion to 12,000 planned

One of Mamdani’s key projects is free childcare. He is starting with free care for two-year-olds. At the beginning of March, Mamdani, together with New York State Governor Kathy Hochul, announced that 2,000 free places will be available in four New York boroughs starting in autumn 2026. By autumn 2027, the programme is expected to expand to around 12,000 children. In the long term, the city aims to guarantee a place for every child. Regardless of income, place of residence, or immigration status.

The project is mainly funded by New York State, which is providing more than $1.2 billion for early childhood care. For this initial phase of 2,000 free places, $73 million has been allocated.

The goal: childcare should no longer be a luxury. Currently, around 80% of families in New York can barely afford quality childcare. A place costs about $26,000 per year on average—sometimes up to $40,000. As a result, many parents reduce their working hours or stop working altogether to care for their children.

“If young parents save more than $20,000 per year per child, that is the kind of change government can bring. If children get a better start, if parents can keep their jobs, if billions in economic output flow back into our economy—that is the kind of change government can bring.” — Zohran Mamdani, in his 100-day speech

$500 million per year from new tax on luxury homes

A second major step concerns tax policy. Since mid-April, New York City has introduced a new tax: the so-called pied-à-terre tax. A pied-à-terre is a second home or apartment in a large city that is not used as a primary residence.

The tax targets very wealthy property owners. It applies to apartments and houses worth more than $5 million if they are not used as a primary residence. The measure is aimed at people who use real estate in New York primarily as an investment rather than as housing. Mamdani expects about $500 million in annual revenue. According to the mayor, the tax is supported by 93% of the population. Similar proposals had existed for years but were never implemented.

“Together with the governor, we are working every day to solve this budget deficit fairly—so that the wealthy contribute their share and our budget reflects that we stand up for working New Yorkers who can increasingly no longer afford to live in our city.” — Zohran Mamdani, announcing the new tax

$34 million for tenants – 195,000 landlord violations addressed

Mamdani has also presented figures on rent and housing. In the first 100 days, more than $34 million has been secured for tenants. For example, through penalties for illegal landlord behaviour or enforced repairs. In addition, defects in more than 6,000 apartments have been fixed, and over 195,000 landlord violations have been identified or penalised.

Rents in New York are among the highest in the world. According to a recent study, the average two-room apartment costs $3,785 per month (about €3,200). Reasons include a housing shortage and speculation by high-income individuals and international investors, which further drives up prices.

A key lever is the Rent Guidelines Board, a city body that determines annually how much rents for certain regulated apartments may increase. Mamdani has already appointed six new members to the nine-person board, aiming to secure a majority and push for freezing a large portion of rents.

Labor rights and consumer protection: $9.3 million recovered from companies

In the first 100 days, the city has recovered $9.3 million for workers and consumers. This includes cases such as food delivery workers whose accounts were unjustifiably blocked by platforms like Uber Eats, leaving them suddenly without income. It also includes hidden fees in online bookings or subscriptions that are difficult to cancel. The city is now intervening in such cases to ensure affected individuals get their money back.

In total, around 50,000 workers are expected to receive back pay because companies withheld wages. For example, delivery drivers must still be paid for work already done even if a customer cancels an order—something some companies failed to do. Over $5 million is involved in these repayments.

100,000 potholes repaired

Alongside major reforms, Mamdani is focusing on visible improvements in everyday life. Since the beginning of the year, more than 100,000 potholes have been repaired. In total, 1,850 kilometres of road are set to be renewed this year. Mamdani calls this approach “pothole politics”. A symbol of tangible improvements in daily life. No matter how big or small citizens’ problems are, the mayor addresses them.

$11.1 billion in investment – instead of capital flight

Critics had argued that wealthy individuals would leave or withdraw their money if taxes increased or regulations tightened. However, recent figures show a different picture: $11.1 billion in venture capital has recently been invested in startups in New York—the highest level in five years. This money is flowing into new companies and ideas. At the same time, labor force participation is at an all-time high. There is no sign of capital flight so far. On the contrary, many continue to invest in New York and bet on the city’s growth.

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