Trump Explores Federal Action Against NYC Pied-à-Terre Tax

President Donald Trump said on Tuesday that his administration is exploring whether the federal government has the legal authority to block New York City's new pied-à-terre tax, a surcharge on luxury second homes that was recently put on hold by a state court judge. The move escalates a political and legal battle over a policy designed to generate revenue for city services.

In a post on Truth Social on Tuesday, Trump argued the tax is driving wealthy residents and property owners out of New York, costing the state and city more in lost tax revenue than the surcharge would generate. He called the policy a "dangerous political experiment" and said he is looking into federal options to stop it. "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," Trump wrote.

The tax, signed into law in May by Governor Kathy Hochul, targets single-family homes valued at $5 million or more and apartments worth $1 million or more that are not a primary residence. Mayor Zohran Mamdani has said the surcharge is a fair way to ask wealthy homeowners to contribute to the...