Tipsheet

The Capital of American Capitalism Is Becoming the Capital of Welfare

New York City has always been one of the most quintessentially American cities, home to a powerhouse financial industry, a culture built on hard work, and the Statue of Liberty standing watch in its harbor as a symbol of American freedom. Lately, though, it's earned a different reputation, as the largest welfare state the city has built in a generation.

From May 30, 2025, to May 30 of this year, New York City handed out a historic $2.7 billion in direct cash grants alone, not total welfare spending or entitlements like SNAP or Medicaid, but pure cash assistance, to an astonishing 864,999 different people. That's a 55.7 percent increase since 2022, and a total the city hasn't touched in nearly three decades.

Mayor Mamdani likes to tell New Yorkers that socialism is here to fix the failures of the free market and even touted his administration as doing just that. The numbers tell a different story. Socialism isn't fixing anything. It's simply writing checks and lauding itself as the solution. 

Some might assume this level of spending is simply what governing a major, progressive American city looks like now, that Chicago or Los Angeles must be doing something similar. They aren't, not even close. New York isn't just more paternalistic than its progressive peers. It has left them in the dust. 

Los Angeles County, governed by some of the most progressive city council members and mayoral leadership in the entire country, spent roughly half of what New York City did: between $1.1 and $1.3 billion in cash grants to residents in fiscal year 2025. The comparison is even starker once you account for population. LA County is home to roughly 9.6 million people, versus New York City's 8.5 million, meaning LA County has over a million more residents and still spent less than half as much on cash assistance. 

Chicago spent even less, distributing an estimated $250 to $350 million across Cook County.

“This is the Communist Playbook 101: make everyone reliant on the government, so the masses have no choice but to support the people signing their checks,” Councilwoman Joann Ariola (R-Queens) said.

“This is only going to get worse as the Democratic Socialists of America ramp up their tax-the-rich rhetoric and drive even more jobs out of the city. With every job they force out, the far left gets one more person dependent on them. It’s all part of the plan.”

New York City's socialism is beginning to look like nothing more than old-fashioned state paternalism as the city's government shows every sign of becoming the most generous welfare state in America, not by accident, but by design.

To the socialist, these numbers are proof the city is doing right by its citizens, a promising sign that government is finally stepping up. To conservatives, they read very differently, as a steady erosion of the economic freedom the Declaration of Independence promised Americans under the phrase "the pursuit of happiness." New York City's government now touches the lives of nearly one million residents who wait on it to issue their check each month. That kind of dependency is quietly eroding the American instinct toward self-reliance, and risks leaving a million people who could be contributing to the city's economy, and the country's more broadly, sitting on its sidelines instead.

The picture that emerges is a depressing one. A city that once symbolized what free people from all over the world could build for themselves, through nothing but determination and hard work, is now measuring its success by how many of its people no longer have to.