Zohran Mamdani, the mayor of New York City, is facing increasing financial pressure as the city confronts a projected $5.4 billion budget deficit, forcing his administration to consider options that differ from some of his earlier campaign pledges.

According to a report by the New York Post, First Deputy Mayor Dean Fuleihan recently suggested that converting currently free street parking into metered spaces — or introducing “dynamic pricing,” where parking fees fluctuate based on demand — is a policy idea worth examining.

Speaking at a CityLaw breakfast event, Fuleihan said the city should be open to reviewing all possible revenue sources.

“Yes, we should be looking at those kinds of ideas,” he said when asked whether charging for previously free parking could help narrow the budget gap.

At the same time, he acknowledged that such a measure would only address part of the problem. “It’s not going to solve a $5.4 billion shortfall,” Fuleihan noted, adding that the issue still deserves careful discussion.

Research cited by the Center for an Urban Future suggests that expanding parking meters throughout the city could potentially generate up to $1.3 billion in annual revenue. Currently, about 800,000 of the city’s more than 3 million street parking spaces — roughly 25% — require payment. Analysts estimate that converting around 750,000 additional spaces into metered spots could significantly increase revenue while also helping reduce traffic congestion.

However, the idea has sparked criticism from residents and elected officials, particularly in neighborhoods outside Manhattan where public transportation options are more limited.

Some locals argue that the proposal would unfairly affect working-class communities. Marcel Crandon, a Bedford-Stuyvesant business manager, described the plan as a financial burden on neighborhoods that already struggle with affordability.

Several members of the New York City Council have also raised concerns. David Carr, a councilman from Staten Island, compared the parking proposal to the mayor’s previously suggested property tax increases, arguing that many residents in outer boroughs depend on cars because public transit options are limited.

Similarly, Joann Ariola of Queens warned that expanding parking meters could place additional financial strain on working and middle-class families who rely on their vehicles for daily transportation.

City officials say the growing deficit stems partly from new spending programs and rising operational costs. Mamdani has warned that without additional funding from Albany — particularly through higher taxes on wealthier residents — property taxes across the city could increase by nearly 10 percent.

In response to the discussion about parking meters, Mamdani stressed that it is not the administration’s preferred approach.

“Our administration is focused on closing the budget gap by addressing financial imbalances in the city and asking the wealthiest residents to contribute more,” he said in a statement. He added that parking meters alone would not solve a deficit of this scale.

Although no formal proposal has been introduced yet, the fact that the option is being discussed indicates that City Hall is evaluating a wide range of potential revenue sources as budget negotiations move forward.

If pursued, any expansion of metered parking would likely require approval from the City Council and could become a major point of debate over affordability, transportation policy, and the city’s financial future.