CNN host Fareed Zakaria criticized the fiscal direction of several large U.S. cities during a recent broadcast, arguing that rising public spending has not consistently produced improved outcomes. He pointed specifically to New York City, Los Angeles, and Chicago, all led by Democratic officials, saying voters are increasingly concerned about affordability and long-term financial stability.
In New York, Mayor Zohran Mamdani has proposed a $127 billion city budget that includes a reported 9.5% property tax increase to address a projected multibillion-dollar shortfall. The proposal has sparked debate, including scrutiny from editorial boards and state leaders such as Gov. Kathy Hochul. Mamdani has emphasized affordability as a top priority, particularly around housing costs.
Zakaria also referenced Los Angeles, where homelessness remains a significant challenge. According to reports from the Los Angeles Homeless Services Authority, homelessness increased in recent years despite substantial public funding aimed at addressing the issue. Zakaria cited audits questioning how effectively some of those funds have been tracked and evaluated.
In Chicago, similar concerns have been raised about long-term pension obligations and budget pressures. Zakaria argued that while city leaders frequently campaign on improving affordability, policy choices must align with sustainable fiscal management to achieve measurable results.
As part of the broader policy debate, Zakaria suggested that expanding housing supply could help ease affordability pressures in high-cost cities. He referenced commentary from Matthew Yglesias advocating for streamlined housing development to increase inventory and strengthen local tax bases. City leaders in Los Angeles, including Mayor Karen Bass, have likewise faced public scrutiny over spending decisions as voters weigh how best to balance services, infrastructure, and financial responsibility.