After the mayhem of the election, it is time to evaluate what the Biden presidency will mean for New York City. The pandemic has left the City’s finances in a precarious state, and higher taxes are inevitable regardless of who is in the White House.
A democratic presidency is almost certain to free up more funding for New York City, even in the absence of a Democratic majority in the Senate. Opening up the spigot to federal funds will be excellent for the real estate market and we therefore believe a Biden presidency will be a much needed tonic in the short to medium term.
The New York Times put together some great points on why the Biden administration could be very good for New York City and we’ve outlined them here for you!
A new federal stimulus package could be a help to New York City
Because of the pandemic, both state and local governments are looking at a potential $50 billion deficit in the coming years.
As of right now, the city is facing thousands of layoffs and budget cuts. In fact, the Metropolitan Transportation Authority has projected a $16.2 billion deficit through 2024.
With a victory from President-Elect Biden, both state and city leaders hope to negotiate a bigger federal stimulus to help local governments.
According to The New York Times, Joe Biden’s economic plan calls for providing “all necessary fiscal relief to states so their workers and communities get the help they need, especially those on the front lines like New York.”
We could finally see the Hudson River rail tunnel
We’ve all heard the stories of Joe Biden riding Amtrak every day from Delaware to D.C. It shouldn’t come as a surprise that he is a big supporter for the rail company.
Amtrak’s ambition to build a new rail tunnel under the Hudson River has been stalled under President Trump and the current tunnel that they depend on is over one hundred years old and had been badly damaged after Hurricane Sandy.
However President-Elect Biden has included this project in his proposed infrastructure plan and according to the New York Times, he says that it will “shrink the travel time from D.C. to New York by half.”
The city’s reputation would likely improve
President Trump has not been a fan of New York City (his home town) for quite some time. In fact, he recently labeled the city as an “anarchist jurisdiction”, and tried to cut federal funding.
The Mayor of New York subsequently filed a lawsuit to stop these cuts, which could cost NYC close to $12B dollars.
It’s highly unlikely that President-Elect Biden will make the same baseless claims that NYC, along with others, have allowed themselves to become “lawless zones.”
New York City will have a friend in the White House
Governor Andrew Cuomo and President-Elect Biden have a close friendship. In fact, the two have worked closely together in the past, including on the 2015 plans to rebuild LaGuardia Airport.
Mayor de Blasio will find more common ground with the incoming administration than we’ve seen over the last four years.
Recent Comments