Democrats are facing backlash over rising spending in New York, Virginia after promises of affordability

“The water bill went up. The electric bill went up. Now the property tax – what are we really doing here?”

This is one of many complaints of concern and frustration expressed by New York City residents at a recent public meeting, where they said the Mayor. Zohran Mamdani’s policies since he took office have made life more expensive. The pushback is significant as Mamdani, like many Democrats who take office in November, is openly campaigning to make health more affordable for members.

It’s not just New York. Like Mamdani, Democratic Virginia Gov. Abigail Spanberger campaigned as a vocal critic of Republican economic policies. Now, he faces the wrath of voters as costs in the Old Dominion continue to rise, and an economic climate that appears hostile to business is driving away some of the biggest defenders of the tax base.

The trend underscores the growing political risks for Democrats, who will now need to show they keep their promises ahead of the midterms.

New York’s ‘single fortune-destroying punch’

In New York City — the financial capital of the world and home to nearly 9 million people — rising costs have national implications.

Residents say Mamdani is backtracking on campaign promises to lower housing costs, pointing to property tax hikes, rising water bills and high electricity bills as signs that life is getting more expensive.

With the city’s housing market already under strain, with demand far outstripping supply, critics say Mamdani’s proposed rent freeze could discourage new construction, tighten inventory and drive up prices in the long run.

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For renters and homeowners, Mamdani’s changes could mean fewer housing options and higher costs in the long run. (Adam Gray/Bloomberg/Getty Images)

“Economists – whether they’re on the right or the left – basically agree that if the government uses price controls in the rental market, you end up with a housing shortage,” said EJ Antoni, an economist at the Heritage Foundation.

Antoni said the city’s affordability challenges are largely driven by policy. “If we look at the ways that New York City is more expensive than other places around the country, it’s because of bad public policy that put those costs up,” he said, adding that “doubling down on that government failure is going to make it worse.”

Edward Pinto, CEO and director of the AEI Housing Center at the American Enterprise Institute, said Mamdani’s proposal to freeze rent and increase property taxes. New York it would be a “one-two punch of wealth destruction.”

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Economists warn that Mamdani’s housing proposal will exacerbate the problems of affordability in the nation’s largest city. (Beata Zawrzel/NurPhoto/Getty Images)

“Rental freezes will lower multifamily property values ​​and property tax increases will lower multifamily and single-family values. At the same time, new construction will contract and inventory will decrease as repairs are postponed and improvements can be made,” Pinto said.

For renters and homeowners, those shifts can translate into lower housing costs and higher long-term costs.

When asked about Mamdani’s latest proposal — a property tax plan that would drag middle-class families off the bill for the wealthy — Pinto warned that it would cause new damage to the city.

“This proposal will destroy NYC’s wealth in a unique way,” Pinto said. “This estate tax proposal will mismanage money and result in the voluntary migration of NYC residents and their wealth to places like Florida and Tennessee,” he added.

Virginia: ‘I am especially determined to increase the tax burden’

Virginia Gov. Abigail Spanberger offers a Democratic response to the State of the Union. (Mike Kropf/Getty Images)

Despite the fact that Spanberger has campaigned for funding in Virginia, his party’s lawmakers in Richmond are pushing forward a full set of tax proposals that will increase costs for residents and businesses.

They propose more than 50 taxes targeting income, investment and everyday economic activity, from joining a gym to bringing pets to market.

“This is part of a broader picture that we’re seeing across states,” said Jack Salmon, a researcher at the Mercatus Center at George Mason University who focuses on tax and fiscal policy. “These states seem particularly willing to increase the tax burden on high-income taxpayers.”

At the center are changes to Virginia’s tax structure. One bill would raise the top income tax rate to 10%, while another would impose a 3.8% tax on income.

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For some high earners, those taxes can pile up — pushing rates to 13.8% and moving Virginia closer to the highest-tax states.

Lawmakers are also considering a range of new taxes and fees across the economy, from higher sales taxes and taxes on delivery and rideshare services to taxes on everyday services such as maintenance, gym memberships, dry cleaning and dog grooming, and new taxes on large employers.

Adding to this trend is rising energy costs. Dominion Energy’s rate hike that went into effect on Jan. 1 shows, in part, the cost of switching to offshore wind under the Virginia Clean Economy Act (VCEA) – a policy that could lead to higher utility bills for customers.

Spanberger also moved to join the Regional Greenhouse Gas Initiative (RGGI), a carbon pricing initiative that his predecessor, Republican Glenn Youngkin, has left — a move critics warn will increase the burden on household energy bills.

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Rising costs are already causing concern for business leaders. Aerospace giant Boeing plans to move its headquarters from Virginia to Missouri, a move expected to hit the state’s tax base and business climate.

Even if the immediate financial impact is limited, the loss of high-paying corporate jobs and the spending that supports them is expected to erode tax revenues and create ripple effects across the local economy, from reduced consumer spending to weaker demand for services.

As costs rise and frustration mounts, voters will soon decide whether those promises still hold — or if changes are coming in November.

Mamdani and Spanberger’s office did not respond to Fox News Digital’s requests for comment.