Chicago Mayor Brandon Johnson warns that finances in the nation’s third most populous city have «reached a point of no return.»

The mayor said this week that the city will need to take steps to deal with looming budget shortfalls and that key systems that Chicago provides, including education, housing, health care and transportation, are «woefully underfunded.»

Eight-hundred miles to the east, there are concerns in the nation’s most populous city that if democratic socialist Zohran Mamdani wins the election in November as New York City’s next mayor, the city could be headed for a fiscal abyss similar to the crisis half a century ago, when it came close to bankruptcy.

CHICAGO TRIBUNE WARNS ‘HALLOWEEN COMES EARLY ‘ AS CITY FACES SHORTFALLS

Incumbent Mayor Eric Adams, who dropped out of the 2025 race for New York City’s Democratic Party mayor nomination and who is running for re-election as an independent, struck a deal with the city council on a roughly $116 billion budget for fiscal year 2026.

«There are no perfect budgets. But we have come a long way, and this one gets pretty close,» City Council Speaker Adrienne Adams said at a press conference announcing the deal in late June.

CUOMO FLIPS SCIPT ON MAMDANI IN NEW YORK CITY MAYORAL RACE

But the 33-year-old Mamdani, who is the polling frontrunner over Adams, former New York State Gov. Andrew Cuomo, and two other contenders in November’s general election, is running on an expensive platform to tackle affordability and inequality in one of the nation’s most expensive cities. 

Mamdani grabbed national attention in late June after topping Cuomo and nine other candidates in the Democratic Party primary, as he took a big step towards becoming the first Muslim and first millennial mayor.

Former New York Governor and independent candidate for NYC Mayor Andrew Cuomo attends the funeral of slain NYPD officer Didarul Islam at Parkchester Jame Masjid on July 31, 2025 in the Parkchester neighborhood of the Bronx borough in New York City.  (Michael M. Santiago/Getty Images)

Mamdani, a Ugandan-born state assemblyman from the New York City borough of Queens, is proposing to eliminate fares to ride New York City’s vast bus system, making CUNY (City University of New York) «tuition-free,» freezing rents on municipal housing, offering «free childcare» for children up to age 5, and setting up government-run grocery stores.

There are concerns that the significant spending increases to pay for Mamdani’s proposals, along with the possibility of revenue shortfalls, could put a strain on New York City’s budget.

And at the center of Mamdani’s proposals to pay for his pricey plans is a «millionaire’s tax,» which critics say will spur ultra-wealthy New York City residents to flee.

Mamdani’s agenda has given Republicans plenty of fodder to use to go on offense, as they spotlight his «socialist» policies and try to anchor him to Democrats facing challenging re-elections next year. President Donald Trump has gone further, accusing Mamdani of being a «communist.»

And Mamdani’s rivals in November’s mayoral election are also taking aim at him.

Adams has said Mamdani is making «false promises» that will hurt low-income New Yorkers. And the mayor argues that Mamdani’s proposal to set up government-run supermarkets will «devastate the local bodegas and local stores.»

New York City Mayor Eric Adams officially launches his independent re-election bid on June 26, 2025, in New York City. (AP)

Cuomo, as he proposed his own plan to address affordability in New York City, said on Thursday that Mandani is «proposing a theory of socialism that has never worked anywhere.»

«What is the best answer to affordability? It is business development. It is opportunity. It is jobs. It is economic growth. It is not anti-business socialism,» Cuomo said as he asked and answered his own question.

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Firing back, Mamdani campaign spokesperson Dora Pekec claimed that «trusting Andrew Cuomo to address New York’s affordability crisis is the equivalent of tasking an arsonist with putting out a fire — he created this crisis.»

«Trusting Andrew Cuomo to address New York’s affordability crisis is the equivalent of tasking an arsonist with putting out a fire — he created this crisis,» Mamdani spokesperson Dora Pekec said in a statement. 

Vice President JD Vance struck a conciliatory tone on Friday after touching down in London when he told reporters the U.S. and U.K. may disagree on strategy when it comes to ending the war in Gaza, but they «share» the same goal of peace.

«We have no plans to recognize a Palestinian state,» Vance said ahead of a meeting with U.K. Foreign Secretary David Lammy. «I don’t know what it would mean to really recognize a Palestinian State, given the lack of a functional government there.

«Obviously, it’s not an easy problem to solve, or it would have already been dealt with,» he added, noting the need to not only eradicate Hamas but to end the humanitarian crisis across the Gaza Strip. «But we share, I think, that focus and that goal. 

«We may have some disagreements about how exactly to accomplish that goal, and we’ll talk about that today,» Vance added. 

ISRAEL SECURITY CABINET APPROVES PLAN TO OCCUPY GAZA CITY

British Prime Minister Keir Starmer announced in late July a major shift in UK policy toward Israel and said that if Jerusalem does not agree to a ceasefire by September, it would recognize a Palestinian state – a status that Israeli leaders have long objected to.

Starmer’s warning, which echoed similar positions taken by France and Canada, was in direct response to growing frustration with Israel over its continued military operations and the dire humanitarian situation that Palestinians have been facing for months. 

Though the U.K.’s approach to dealing with the escalating situation runs counter to President Donald Trump’s position when it comes to recognizing a two-state solution, Trump has also increasingly expressed his concern over access to food aid and the «real starvation» there.

It is unclear how the U.S. will be increasing its involvement to help with food aid, but the Trump administration has distanced itself from its top allies when it comes to Israel’s military operations in Gaza, with Trump telling reporters on Monday that it was «pretty much up to Israel.»

Palestinians, carrying pans, gather to receive hot meals on July 23, 2025. (Khames Alrefi/Anadolu via Getty Images)

NETANYAHU VOWS TO TAKE FULL CONTROL OF GAZA STRIP, ‘LIBERATE’ PEOPLE FROM HAMAS

Israel’s security cabinet on Friday approved a plan formed by Prime Minister Benjamin Netanyahu to occupy Gaza City despite international pushback. 

But Netanyahu countered any immediate geopolitical outcry in a post on X and said, «We are not going to occupy Gaza – we are going to free Gaza from Hamas. 

«Gaza will be demilitarized, and a peaceful civilian administration will be established, one that is not the Palestinian Authority, not Hamas, and not any other terrorist organization,» he added. «This will help free our hostages and ensure Gaza does not pose a threat to Israel in the future.»

Destroyed buildings lie in Gaza, as seen from the Israeli side of the border, July 28, 2025. (Reuters)

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The plan is still expected to be met with international condemnation, but it’s not the only issue at the top of Western minds as Vance and Lammy meet on Friday.

«We have a lot to discuss. There’s a lot going on in the world,» Vance said. «Of course, the situation in the Middle East, the situation with Ukraine and Russia. There’s a lot of news there and a lot of things to update each other on.»

Apart from the major international security concerns, the duo are also expected to address economic partnerships, which could include recent U.S. tariff announcements. 

Alemania anunció este viernes la suspensión “hasta nuevo aviso” de las exportaciones de material militar que podría ser utilizado por Israel en operaciones en la Franja de Gaza, según declaraciones del canciller Friedrich Merz. La decisión se produce después de que el gabinete de seguridad israelí aprobara en la madrugada un plan militar destinado a ocupar la Ciudad de Gaza, en el marco de un conflicto armado que se acerca a dos años y ha suscitado una creciente presión internacional.

El primer ministro israelí, Benjamin Netanyahu, trasladó personalmente su “decepción” a Merz tras comunicarse telefónicamente, de acuerdo con la oficina de Netanyahu. El mandatario expresó en un comunicado que, “en lugar de apoyar la guerra justa de Israel contra Hamas, que llevó a cabo el ataque más horrendo contra el pueblo judío desde el Holocausto, Alemania premia el terrorismo de Hamas con su embargo de armas a Israel”. Netanyahu subrayó que el objetivo de su gobierno “no es tomar Gaza, sino liberar Gaza de Hamas y permitir que se establezca un gobierno pacífico” en el enclave.

En respuesta, Merz afirmó que Israel “tiene derecho a defenderse del terrorismo de Hamas” y reiteró que la liberación de los rehenes israelíes y las negociaciones para un alto el fuego son “la máxima prioridad” para su gobierno. El canciller argumentó que la reciente ofensiva israelí “dificulta cada vez más” la posibilidad de lograr estos objetivos, y explicó que, en consecuencia, el Gobierno Federal no aprobará exportaciones de armamento hacia Israel que puedan ser utilizadas en Gaza mientras continúe la actual situación militar.

La medida marca un cambio notable en la política exterior de Alemania, que, junto con Estados Unidos e Italia, figura entre los principales proveedores de equipos militares del ejército israelí. El Instituto Internacional de Investigación para la Paz de Estocolmo (SIPRI) reportó que Alemania suministró el 30% de las importaciones de defensa de Israel el año pasado, incluidas corbetas Sa’ar y motores para tanques Merkava y transportes Namer que operan activamente en el terreno gazatí. El Ministerio de Economía alemán cifró en 485 millones de euros (alrededor de 565 millones de dólares) el valor de aprobaciones de exportaciones de defensa a Israel entre octubre de 2023 y mayo de 2025.

El canciller Merz insistió en que “Hamas no debe tener ningún papel en el futuro de Gaza”, pero enfatizó que una acción militar más severa “obliga a Israel a asumir una responsabilidad aún mayor hacia la población palestina”. Solicitó explícitamente el acceso sin restricciones de ayuda humanitaria, incluso para organizaciones de la ONU y otras ONG, ante una situación humanitaria calificada como crítica por Naciones Unidas y diversos organismos internacionales de derechos humanos.

La posición alemana cobra especial relevancia debido a la histórica política proisraelí de Berlín en el contexto europeo, forjada en gran parte por la memoria del Holocausto. Alemania se había resistido en los debates de la Unión Europea a endurecer colectivamente la postura frente a Tel Aviv, o secundar anuncios como los de Francia y Reino Unido en torno al reconocimiento de un Estado palestino o la imposición de sanciones a colonos israelíes.

Diversos gobiernos europeos, entre ellos Países Bajos, Dinamarca y Eslovenia, aumentaron recientemente la presión diplomática y militar sobre Israel. Eslovenia prohibió ya las exportaciones e importaciones de armas con destino al país a raíz de las operaciones israelíes en Gaza. La presidenta de la Comisión Europea, Ursula von der Leyen, manifestó en la red X que la ampliación de la ofensiva israelí “debe reconsiderarse” y pidió aumentar la entrada de ayuda. Funcionarios de República Checa y Países Bajos también advirtieron sobre los riesgos de escalar la operación militar.

Desde el inicio de la guerra, desencadenada por el asalto de Hamas el 7 de octubre de 2023 que dejó 1.200 muertos y 251 secuestrados en Israel, la ofensiva aérea y terrestre israelí ha provocado decenas de miles de muertes en Gaza, vastos desplazamientos y extensos daños a infraestructuras, acercando al enclave a una situación de hambruna.

La medida anunciada por Berlín sigue sin detallar qué sistemas concretos quedan afectados, y el gabinete de Merz evitó especificar los equipos incluidos. Analistas internacionales estiman que el freno será temporal y especializado en componentes susceptibles de uso directo en Gaza. El gobierno alemán también instó a Israel a “no dar más pasos hacia la anexión de Cisjordania” y advirtió que su responsabilidad humanitaria “aumenta” bajo la nueva ofensiva, mientras decenas de miles de civiles palestinos se preparan para nuevos desplazamientos y se mantiene la incertidumbre sobre la suerte de los rehenes israelíes todavía cautivos en el enclave.

(Con información de Europa Press y AP)