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New York’s richest aren’t opening their wallets to stop the left

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ALBANY, New York — The Empire State’s wealthiest residents are doing little to halt the left’s relentless march in New York.

That posture is playing out in a deeply uncertain political environment for New York’s billionaire class. The surprise election of democratic socialist Zohran Mamdani in the citadel of American capitalism rattled wealthy New Yorkers, and a recent battle in Albany over taxes underscored the growing influence of the state’s left flank.

Yet even as billionaire hedge fund titans like Ken Griffin publicly feud with Mamdani and deep-pocketed real estate interests protest a new tax on high-value second homes in the city, many of Gotham’s richest people are yet to open their wallets to shape the election cycle in this deep blue state.

Wealthy donors’ decision to remain on the sidelines has alarmed Republican operatives and political leaders in what’s shaping up to be a tough year for the GOP. They’ve been unable to persuade the super rich to aid the top of the Republican ticket, Nassau County Executive Bruce Blakeman, who is lagging in the polls behind moderate Democratic Gov. Kathy Hochul.

Republicans need a strong Blakeman candidacy. New York is home to several swing districts that stand to determine control of the closely divided House — making those races vital to President Donald Trump’s final two years in office.

“The thing about rich guys is they like to see a pathway,” said Republican strategist David Catalfamo, a former adviser to ex-Gov. George Pataki. “The only pathway is the governor. You have to show a pathway to success in order to make that bet. What’s the pathway?”

Wealthy New Yorkers were hardly shy about spending against Mamdani last year. Many of them had locked arms with his opponent, former Gov. Andrew Cuomo, with millions of dollars flowing into a Cuomo-allied super PAC from the likes of former Mayor Michael Bloomberg and outspoken hedge fund chieftain Bill Ackman.

Mamdani’s win opened the floodgates for the left — a development that stands to have profound consequences for Albany and Washington policymaking.

Democratic socialists are running to unseat mainstream incumbents, with the 34-year-old Mamdani attempting to play kingmaker after he endorsed Rep. Adriano Espaillat’s far-left challenger, Darializa Avila Chevalier.

DSA challengers are also trying to unseat incumbent state legislators — contests that may reshape an already Democratic-dominated state Capitol and apply even more pressure on Hochul to raise taxes if she wins reelection.

Business groups, including the influential Partnership for New York City, have tried to take a more measured approach by lobbying incumbents rather than unseating them — a posture that includes opposition to broad-based tax hikes. And some private-sector boosters are funding super PACs to protect moderate Democratic incumbents in Albany who have a say over the state’s tax policy.

None of these efforts, though, are directed at unseating the governor, who has forged a productive relationship with Mamdani while also opposing his more aggressive tax hikes. And the relative reluctance among the rich to write checks represents a departure from recent years when the ultra wealthy tried to shape New York’s politics with mixed results.

Financial sector leaders like Dan Loeb backed super PACs supporting pro-charter school candidates in the Legislature in prior election cycles. Billionaire Mets owner Steve Cohen donated heavily to the state Democratic Committee while seeking a lucrative casino license, which he secured last year. Cosmetics heir Ron Lauder spent millions on an outside group to boost then-Rep. Lee Zeldin’s Republican bid against Hochul in her 2022 run for a full term.

That kind of spending is yet to materialize with less than a month to go until the state’s pivotal primaries.

Rather than try to halt the rising tide of democratic socialism, the most prominent of New York’s wealthy elite are renewing vows to move their investments and considerable fortunes to more economically friendly states like Florida or Texas.

The dynamic has left the state’s political class concerned that an even more troubling development is emerging for institutional candidates: The mega rich are simply checking out.

“Some of the entities that really care about this have moved to Florida or Atlanta,” said Conservative Party Chair Jerry Kassar. “They care, but they don’t care enough to take a lead. It boils down to this: You really love the city and gave up versus I love the city and I’m going to fight. What if they gave up?”

Blakeman, who trails Hochul in polling and fundraising, will need New York’s wealthy to side with him if he wants to be successful. His campaign scored a victory last week when a court ruled he could access public matching funds after Democrats tried to deny him the money, but even with that expected cash influx, he still trails significantly behind Hochul, who had $20 million in cash on hand at the start of the year. The governor is not participating in the public financing system.

The expected Republican nominee must improve both his poll position and fundraising to attract the attention of a deep-pocketed super PAC.

“Blakeman being able to properly get back into that program will be a magnet to attract other money to his campaign,” Kassar predicted. “I do think that Blakeman becomes much more appealing to individuals who want to play in New York state.”

Yet deep-pocketed help is not on the horizon, while the governor has shored up her own standing with New York’s economic upper crust.

Hochul has tried to signal to New York’s richest that she understands their concerns. She lobbied Mamdani to retain NYPD Commissioner Jessica Tisch, a member of one of the country’s wealthiest families. She also met with Griffin after Mamdani bragged in a video outside his $238 million New York City penthouse that it would be taxed under a plan the governor championed.

Hochul has not disclosed what was said in her meeting with Griffin, which was scheduled prior to the dustup with Mamdani. And the mayor has not been able to get a sit-down with the hedge funder after the video when Griffin threatened to yank his company’s Big Apple investments.

Those contrasting relationships have suited Hochul well as she navigates this populist political era. Mamdani’s February endorsement of her reelection bid helped short circuit a left-flank primary challenge by Lt. Gov. Antonio Delgado. The Buffalo-native governor has presented herself to the city’s monied elite as a backstop to the mayor’s more sweeping tax measures.

“Absent the governor I think you have a left-leaning legislature that would have pushed more significant tax increases who are not grasping how we’re losing the competitive race,” said Steve Fulop, the president and CEO of the Partnership for New York City, a business-boosting organization.

The DSA, meanwhile, stands to become the biggest winners of the upcoming June Democratic primaries. Candidates backed by the group are supporting primary challengers across New York, and their success would complicate state budget negotiations next year.

There are, however, some exceptions.

One group, Next NYC PAC, has received support from real estate interests like the Real Estate Board of New York’s political arm. The super PAC New York Forward, a group supported by the Albany-based lobbying firm Brown & Weinraub, is backing moderate Democrats in city races including those running against DSA-backed candidates.

“Our clients know they won’t win on every policy issue,” said Evan Rantzaklis, the PAC’s senior adviser. “But they are looking for leaders who will sit down, have real conversations, and find practical solutions — not just try to score political points. This effort is about supporting that kind of legislator.”

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Congress

The $9 billion liability across the street from the Capitol

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There’s a 2.4-million-square-foot ticking time bomb on Capitol Hill, and lawmakers are dithering over how to deal with it as anxieties rise over the massive costs and disruptions involved.

The Rayburn House Office Building has never undergone a full renovation since it opened in 1965, and as plans for a massive revamp of Congress’s largest office complex keep getting pushed off, key systems are routinely failing and expensive piecemeal repairs are weighing on the legislative branch budget.

Architect of the Capitol Thomas Austin has been warning lawmakers about the risk of “catastrophic system failures” in the hulking Rayburn building — home to nearly 200 member offices, committee hearing rooms, secure information facilities, a police firing range and some 1,600 parking spaces.

“As these facilities age and kind of reach this tipping point, we start having an increasing number of failures as all these systems age out and we start having series of failures on top of each other,” he told the House Administration Committee at a hearing Wednesday.

Austin’s agency is estimating a total overhaul of the building could approach $9 billion and require more than a decade of work — the largest project ever undertaken by the Architect of the Capitol and nearly an order of magnitude bigger than any previous renovation project on Blue Light News.

House Administration Chair Bryan Steil (R-Wis.) called the cost estimate “eye-popping” as Austin laid out the case for the project. The price tag far outstrips even the cost of the newest NFL stadiums.

The topline number is only one reason why lawmakers involved at this early stage are growing nervous. The renovation would require much of the building to be vacated, and officials insist it can’t be done wing by wing. That’s how the Cannon House Office Building down the block was recently renovated in a nearly $1 billion project that took nearly a decade and upended congressional operations.

Among other things, redoing Rayburn means finding — or building — space for scores of member offices and committees to set up shop. The working timelines for the project are so long — approaching 20 years — that many lawmakers simply assume they won’t be around to enjoy the finished project, or even a groundbreaking.

House appropriators so far are wary of providing the cash needed even for the early planning stages.

Austin has only been in the job for a year, but his agency has a long track record of construction projects going over budget. The Cannon renovation went nearly $200 million over its estimated cost, and the post-9/11 construction of the Capitol Visitors’ Center ultimately cost double what was planned.

“We’re not going to go blow $8 or $10 billion of taxpayer money without our own proper understanding of the evidence and making our own conclusion,” Rep. Nick LaLota (R-N.Y.), a member of the appropriations subcommittee which oversees funding for the legislative branch, , said in a Wednesday interview. ”We won’t be a rubber stamp for the AOC.”

The staggering price tag is driven by a host of factors, including that Rayburn is nearly three times the size of Cannon and there is a need for vast remediation of toxic materials. Austin told lawmakers Wednesday that the postwar era of Rayburn’s initial construction “was kind of that sweet spot where we’re using both asbestos and lead in our buildings.”

But the costs of waiting are also substantial. In the past year 16 major water leaks impacted member offices, committee offices, storage areas and hallways — each costing millions of dollars to remedy. In some cases, the leaks displaced lawmakers and staff for months.

“We all know that the longer you put off those repairs that you need to deal with at your home or your business or anywhere, the more expensive they get and then more profound those problems become,” New York Rep. Joe Morelle, the top Democrat on the House Administration Committee, said Wednesday. “Unless Congress acts, we will continue pouring millions of taxpayer dollars into temporary fixes instead of addressing the underlying problem.”

Austin told the panel he was sensitive to the cost concerns but said the five-phase approach to the Cannon renovation was “inefficient and disruptive” and should not be replicated with Rayburn. He also said it should be harder to change renovation plans once the project gets underway, something that plagued the Cannon project.

“We have to use every little bit of experience from Cannon to make sure that the same — I won’t say disaster, but the same cost overruns — don’t occur with Rayburn,” Rep. Greg Murphy (R-N.C.) warned Austin at Wednesday’s hearing.

The Architect of the Capitol’s proposal for displaced Rayburn occupants involves building a new permanent structure that could be used for “swing space” then for other purposes once the renovation is complete.

Republicans on the House Appropriations Committee provided some funding for planning of the Rayburn renewal project but not for design of “swing space” that will be critical for the project to move forward.

“I think there’s a lot of questions about that, and members don’t feel like they signed off,” House Appropriations Chair Tom Cole (R-Okla.) said in an interview. “I expect to not be in Congress by the time this happens so I’m not terribly worried about it.”

As for where that new building may sit, Austin said he is waiting for its eventual users to weigh in.

“We’ll put it where Congress tells us to put it,” he told the panel Wednesday. “We’re still waiting for Congress’s decision and consensus guidance on that.”

Rep. Barry Loudermilk (R-Ga.) made clear Austin shouldn’t hold his breath, saying it “may happen in the next month, maybe the next 250 years, before we get to it.”

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Max Miller rebuked for accusing Rashida Tlaib of associating with Hezbollah

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Rep. Max Miller (R-Ohio) accused Rep. Rashida Tlaib (D-Mich.) of advocating for the terrorist organization Hezbollah during remarks on the House floor Wednesday.

Miller’s attack on the Palestinian-American congresswoman came during debate over a proposal she introduced that would block U.S. forces from entering Lebanon, a center of Hezbollah operations.

In stressing the danger Hezbollah poses to U.S. allies in the Middle East, Miller characterized Hezbollah as “butchers that you like to hang out with to a certain extent,” referring to Tlaib.

Tlaib protested Miller’s comments, prompting a shouting match between the two on the House floor.

“You advocate for terrorists on a daily basis,” Miller told Tlaib.

Tlaib requested Miller’s remarks be taken down, and his comment was ultimately stricken.

The resolution, which will likely fail due to opposition from Republicans and some Democrats, was an effort to restrict U.S. involvement in Israel’s military campaign in Lebanon. The House passed an Iran war powers resolution earlier Wednesday requiring the White House to get approval from Congress before launching new strikes.

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Congress

Senate Republicans manage to unstick immigration funding bill

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Senate Republicans launched debate on their party-line immigration enforcement bill Wednesday — a major step after nearly two weeks of delay — but they are facing lingering internal concerns over a proposed “Anti-Weaponization Fund” that could still scuttle the legislation.

Senators voted 53-46 on party lines to advance the bill, which would provide roughly $70 billion for Immigration and Customs Enforcement and other Department of Homeland Security agencies.

An updated bill released Wednesday omits $1 billion in Secret Service security funding that had been included in an earlier draft and could have been used for President Donald Trump’s White House ballroom project. Blue Light News first reported the decision to drop the funding last month.

It also strips out Justice Department funding unrelated to the controversial settlement fund — a move that GOP leaders made in hopes of making it harder to include language restricting or eliminating the fund. Top Republicans have warned that adding such language could threaten to tank the overall bill.

“Right now, the goal is to get the base bill across the finish line, and so hopefully all of our members who have amendment ideas will … keep in mind the need that we’ve got to keep the bill together and make sure we’ve got 50 votes for it at the end,” Senate Majority Leader John Thune said.

Democrats said they did not expect to start voting on amendments until Thursday morning, but Senate Majority Whip John Barrasso expressed confidence that Republicans would ultimately have the votes to pass the bill.

“Democrats can drag it into the middle of the night if they want to, but we’re ready to go,” Barrasso said.

But several GOP senators signaled Wednesday they are still interested in adding language to block the fund, even after acting Attorney General Todd Blanche told House appropriators Tuesday that the administration would not move forward with it. While Blanche’s testimony was aimed at assuring GOP senators, his refusal to put the decision in writing and his praise for the underlying purpose of the fund — compensating Trump allies and others who were subject to allegedly politically motivated prosecutions — left some wary.

Sen. Bill Cassidy (R-La.) said Blanche’s comments did not assuage his concerns.

“You want to make sure it’s really dead, and I think we can make it really dead,” he said.

Sen. Susan Collins (R-Maine) said Blanche’s comments were “helpful” but that she would still vote for amendments to nix the fund. Sen. John Curtis (R-Utah) said he was waiting to see what specific amendments are offered and whether the Senate parliamentarian would rule that they could go in the filibuster-skirting immigration bill.

Sen. Thom Tillis (R-N.C.) said Wednesday he would file his own amendment to eliminate the fund, though he acknowledged the parliamentarian could rule it needs to clear a 60-vote threshold to be added in rather than a simple majority of senators.

Tillis suggested he could ultimately vote against the overall bill if it does not include language nixing the fund.

“I wouldn’t support a bill that doesn’t have that in there,” Tillis said, adding that senators would just be “codifying the policy” that Blanche articulated Tuesday.

Calen Razor contributed to this report.

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