United States Treasury Secretary Scott Bessent has said the federal government will not bail out New York City in the event of a financial crisis if the city elects its Democratic nominee, Zohran Mamdani.

On Wednesday, Bessent reportedly told the nation’s most populous city to “drop dead”, citing a phrase he attributed to former President Gerald Ford in 1975, when the city faced near-bankruptcy.

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“It will be the same thing that Gerald Ford said: ‘Drop dead,’” Bessent told New York-born anchor Maria Bartiromo on Mornings with Maria on Fox Business Network, which is based in New York.

Ford never actually made that statement. It originated from a New York tabloid headline at the time.

Bessent added, “I guarantee you — and there are not a lot of things in life that are sure — that New York City will be coming to the federal government for a bailout if the Mamdani plans are implemented.”

The treasury secretary did not specify which elements of Mamdani’s platform could create financial risk. Mamdani, a 31-year-old Democratic socialist, currently leads by double-digit margins in 18 different polls for mayoral elections due November 4.

An Al Jazeera analysis of Mamdani’s proposals found that the campaign includes detailed funding plans for widely popular initiatives, including universal child care, a pilot programme for city-run grocery stores, and free city buses. These plans would be financed by raising the corporate tax rate and increasing taxes on New Yorkers earning more than $1m annually by 2 percent.

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However, any changes to the city’s tax structure require approval from New York State Governor Kathy Hochul, who last week endorsed Mamdani over her former colleague Andrew Cuomo. Cuomo, who lost the Democratic primary to Mamdani, is running as an independent.

Al Jazeera asked both the White House and the Department of the Treasury whether their position on a bailout would differ if a financial need arose due to policies implemented by other entities, including the state, congressional leaders, or the White House itself. Neither were available for comment.

Trump’s economic policy impact

Economic policies of US President Donald Trump have already been linked to a slowdown in the US economy, including for New York City. The labour market has cooled, with August adding only 22,000 jobs nationwide. The ADP private payroll report showed just 54,000 jobs added in the private sector, nearly half the number added the previous month.

In the first half of the year, New York City added fewer than 1,000 jobs compared with 66,000 during the same period last year. City and state tax rates remain unchanged, as do city and state leadership positions. However, between the first half of 2024 and 2025, Donald Trump became the president of the United States and instituted substantial economic policy changes.

The Trump administration has also previously targeted New York City with policy actions. Earlier this year, the Department of Transportation threatened to withhold federal funding over the city’s congestion pricing policies. The Department of Education threatened to withhold funding for New York City schools over protections for transgender students. The White House also cut funding allocated by Congress through FEMA, designed to help the city prevent terror attacks.

The Mamdani campaign did not respond to Al Jazeera’s request for comment.