Billionaires spend big to boost Cuomo

A version of this article originally appeared in CNBC’s Inside Wealth newsletter with Robert Frank, a weekly guide to high-net-worth investors and consumers. become a member to receive future editions straight to your inbox.

Super PACs supporting Andrew Cuomo and opposing Zohran Mamdani in the New York City mayoral race have raised more than $40 million, millions of which came from prominent billionaires and family dynasties, according to election filings.

New York billionaires Bill Ackman, Ronald Lauder, William Lauder, Barry Diller and Dan Loeb made major donations to a special committee called Fix the City backing independent candidate Andrew Cuomo, according to election filings. Other non-New Yorkers who have donated to the group include casino mogul Steve Wynn and the world’s richest woman, Alice Walton.

The wave of big money highlights the growing fear among many of New York’s wealthy and national conservatives that Mamdani will win. A self-described Democratic socialist, Mamdani’s platform includes rent freezes, free buses, free child care for all and state-run grocery stores. To cover the cost of the programs, he has proposed a 2 percent surtax on New Yorkers making more than $1 million a year.

Although Mamdani maintains a double-digit lead in most polls, a massive money machine built on pro-Cuomo PACs has gained momentum as Election Day approaches. Fix the City is by far the largest of the so-called “independent expenditure committees”; They are political fundraising groups similar to super PACs that can accept unlimited funds and were created to bypass New York City’s campaign finance limits. Donors are not tax deductible and are not allowed to coordinate their efforts with a particular candidate’s campaign.

According to filings, Fix the City has raised more than $32 million, with several major gifts following Mamdani’s first win in June. Two other anti-Mamdani committees include Defend NYC, which raised $2.5 million, and New Yorkers for a Better Future, which raised $1.5 million.

The PAC supporting Mamdani, called New Yorkers for Lower Costs, raised just under $2 million. The only wealth donor known to have contributed to this special committee is Elizabeth Simons, daughter of the late billionaire hedge fund investor James Simons.

Many of the largest donations to Fix the City came before the primary; these included two gifts totaling $8.3 million from Michael Bloomberg in June. Bloomberg, who met with Mamdani in September to offer advice, has not donated anything to the group since then.

Many billionaires increased their donations after the primary. Joe Gebbia, Airbnb co-founder, Tesla board member and White House chief design officer, made two gifts of $1 million each to two pro-Cuomo PACs in October.

Gebbia, like several other billionaires mentioned in this article, declined to comment on the gifts. Others could not be reached for comment.

The Lauder family, heirs to the Estee Lauder fortune, donated over $2 million to anti-Mamdani committees. Ronald Lauder gave $750,000 to Fix the City in September, while William Lauder, chairman of The Estee Lauder Companies, gave $500,000 in late August. Other members of the Lauder family have donated a total of more than $750,000 since June.

More than a half-dozen members of the Tisch family, whose fortunes range from real estate and hospitality to energy, packaging and sports, donated to Fix the City. Abigail, Louise, Maude and Laurie Tisch gave $100,000 in October, while Alice Tisch gave $500,000. Elizabeth, Jonathan and Merryl Tisch also donated to the PAC after the primary.

Loews Corp. The Tisch family’s donations carry additional symbolism since CEO James Tisch’s daughter, Jessica Tisch, became the popular New York City police commissioner who oversaw a steady decline in crime in the city. Mamdani said he plans to keep Tisch on as commissioner, but also called for an overhaul of the police department and the creation of a new “public safety department.”

Many of the big donors backing Cuomo are hedge funders. Bill Ackman, who supported President Donald Trump’s reelection last year, gave $250,000 to Fix the City in October, following two gifts of $250,000 each before the primary. Third Point’s Dan Loeb donated $100,000 in October, following a $100,000 donation in June.

Some of the major donors appear to have only loose ties to New York City.

Steve Wynn, a longtime Republican donor who lists his address as Las Vegas, gave $500,000 to Fix the City in October. When Alice Walton, the world’s richest woman, made a $100,000 donation in August in addition to the $100,000 donation she made in April, she listed her address as a post office box for Walmart in her hometown of Bentonville, Arkansas. Walton has little history of political donations in New York, other than donating to charter school groups and candidates. Mamdani said he opposes expanding charter schools.

While most anti-Mamdani billionaires are Republicans, a notable exception is Barry Diller, chairman of the IAC and a longtime New York philanthropist who typically leans toward Democrats. Diller gave $500,000 to Fix the City in two donations, the most recent in October.

Some pro-Cuomo supporters worry that donations from billionaires and family dynasties could backfire in an increasingly populist political environment. Mamdani has made donations a point of pride on the campaign trail, saying the wealthy’s spending is proof that his policies will restore power to ordinary New Yorkers.

“They spend more money than I would even tax them,” Mamdani said in an interview with MSNBC on Tuesday.