President Donald Trump is looking into potential federal actions to fight back against New York City Mayor Zohran Mamdani’s championed second home tax, as questions loom on whether there could be a federal lawsuit against the Big Apple.
The policy, which opponents argue could have a negative financial impact on the city by driving out the wealthy, is currently halted by a Staten Island judge from going into effect.
“I think that’s a combination and the Department of Justice and potentially other agencies that would look into what to do. The president’s spoken publicly on his views on it […] the Department of Justice has filed civil lawsuit against cities all over the country where appropriate,” Blanche told Townhall on Wednesday at a news conference.
“We haven't filed a lawsuit yet and I'm not going to comment on what we’re doing around that,” he continued.
I asked AG Todd Blanche if the Trump admin plans to sue over NYC’s pied-à-terre tax.
— Cameron Arcand (@cameron_arcand) August 12, 2026
“We haven't filed a lawsuit yet and I'm not going to comment on what we are doing around that.” @townhallcom pic.twitter.com/UgcERNmBLN
Trump sounded off against the pied-à-terre tax in a Tuesday Truth Social post, saying that it would result in “costing New York City and State a fortune in that the money, eventually to be gotten, is very little compared to to the TAXES PAID by the tens of thousands of people who are fleeing the City, never to return.”
“This doesn’t work in America, and must be stopped, NOW!” Trump wrote. “I am looking to see if the Federal Government has any legal right to avert this disaster, before it is too late, for the millions of people who cherish New York and want to see it thrive, as opposed to becoming a filthy, crime ridden, decrepit place of mockery and scorn.”
Townhall reached out to the New York mayoral office for comment.
Mamdani has said he believes the proposal will bring in cash to support the city government.
“When I came into office, I made clear that our City would need long-term solutions to our city’s long-term fiscal challenges,” Mamdani said in a statement last month.
“On Tax Day earlier this year, I promised that we would tax the rich, and with our new pied-à-terre tax, that is exactly what we have done. Today is the first step in implementing this tax and collecting critical revenue to fund our parks, schools and libraries. We will diligently implement this law and ensure that we collect what working New Yorkers – and this city – deserve,” the Democrat added.