NYC agencies directed to identify methods for reducing fines on small businesses.

Mayor Zohran Mamdani has issued an executive order directing city agencies to significantly reduce fees and fines levied on small businesses in New York City, which has long been viewed as a challenge for local entrepreneurs. The order, signed on Wednesday, aims to streamline the bureaucratic burden faced by small businesses, which often incur various costs for essential operations, including the ability to serve ice cream and install refrigeration units.

This initiative involves Deputy Mayor for Economic Justice, Julie Su, along with seven specific city agencies: the Departments of Buildings, Consumer and Worker Protection, Environmental Protection, Fire, Health and Mental Hygiene, Sanitation, and Transportation. These agencies are required to compile a comprehensive inventory of fees and civil penalties they currently administer. Within 45 days, they are expected to evaluate these costs and determine areas where reductions can be made. The overarching goal is to eliminate unnecessary fines and adjust rules or legislation to foster a more business-friendly environment.

In his announcement, Mayor Mamdani emphasized the vital role of small businesses in the narrative of New York City, stating that the local government has historically created obstacles for these businesses, complicating their ability to establish and sustain operations. His executive order seeks to rectify this situation and provide immediate relief from punitive fees that contribute to the high operating costs for small businesses.

Throughout his campaign for mayor, Mamdani consistently highlighted the significance of supporting small businesses, even pledging to reduce their fees by half and appointing a dedicated “Mom and Pops Czar” to oversee these changes. However, the current announcement did not reiterate these specific commitments.

Former Mayor Eric Adams had previously signed an executive order focused on a similar objective regarding fines for small businesses. In contrast, Mamdani articulated a vision that places small businesses at the core of his administration’s mission, rather than treating them as a secondary concern.

Responses from business leaders have been cautiously optimistic. Randy Peers of the Brooklyn Chamber of Commerce and Tom Grech of the Queens Chamber of Commerce commended the mayor’s decision but advocated for clearer, measurable outcomes. They stressed that past administrations have promised to review fines but greater clarity on reduction targets is essential for meaningful reform that effectively aids small business owners.

This initiative arrives at a critical juncture as small businesses continue to recover from the impacts of the COVID-19 pandemic and face mounting pressures from rising costs and regulatory compliance. By addressing fee structures, Mayor Mamdani’s administration aims to foster a thriving entrepreneurial ecosystem in New York City.