New York Freezes Rents as California Moves Closer to a Billionaire Tax

Two major progressive victories unfolded Thursday in the United States, from New York to California, in moves that President Donald Trump is unlikely to welcome. In New York, Mayor Zohran Mamdani secured his first major political win when the city’s Rent Guidelines Board approved a rent freeze for about 1 million apartments, following a decisive 7 to 1 vote. The measure, which Mamdani said he had effectively promised in his campaign, was approved just six months after he took office.

The freeze covers one-year and two-year leases, the first time New York has imposed such a freeze on longer-term contracts. It is set to take effect in October and apply to leases signed through September 2027. The policy affects more than 40% of the city’s housing stock, including luxury units, subsidized apartments, and older walk-up buildings. It came as average rent for a one-bedroom apartment in the city was nearing $5,000 a month and vacancy stood at about 1.4%.

The meeting in Harlem drew hundreds of tenant-rights activists, who filled the auditorium with chants, whistles, drums, and celebrations after the vote. Mamdani called it “a historic victory for New York’s renters” and said it was “the relief that working people across our city deserve.” Landlord representatives reacted angrily. Christina Smith, the board’s owner representative, resigned hours before the vote, calling the process “a complete farce” and accusing the board of ignoring professional data to satisfy Mamdani’s campaign pledge.

At the same time, California moved toward a first-of-its-kind ballot initiative that would impose a one-time 5% tax on residents with wealth above $1 billion. State election officials finalized the November ballot measure, which supporters say would fund public health programs and offset deep federal cuts pushed by Trump in his “big and beautiful” law. The initiative is a political setback for Governor Gavin Newsom, who has warned it could drive billionaires out of the state and damage California’s revenue base.

The measure has strong backing from the left, including Senator Bernie Sanders, who said billionaires will learn that “we still live in a democratic society.” Opponents, including Google co-founder Sergey Brin, have already begun pouring tens of millions of dollars into the fight. California voters are set to decide the issue on November 3, and it will pass if it wins a simple majority of 50%.