Nobody Likes Red Tape, Not Even Mamdani

New York City government isn’t known for cutting red tape. But this week, New York Mayor Zohran Mamdani (yes, the democratic socialist) announced more than 50 reforms that would eliminate unnecessary regulations and high permitting and licensing fees for small businesses. 

The reforms, unveiled on Monday, cover a variety of small business issues, from outdoor dining rules to pawnbroker licenses. During a speech in the Bronx, Mamdani announced that the city would work with the state to eliminate the frozen dessert permit, which requires restaurants that already have food permits to “seek out a superfluous second permit for what they’re already doing.”

He also said the current state of regulatory affairs for barbershops is “anti-fade,” as shop owners must obtain three different permits to operate their business. Mamdani announced the city would work with the state to streamline those permits as well. Among dozens of other reforms, the Mamdani administration will also reduce street fair vendor permit fees, speed up restaurant inspections, and cut equipment registration fees from $110 to $0 for 12 months. 

Not all reforms will be implemented immediately, and those that can’t be carried out by city agencies will “require rule changes, City Council legislation, or cooperation from Albany before business owners see the effects,” reported amNY.

In addition to these proposed regulatory changes, Mamdani signed an executive order on Monday creating a task force of city agencies that will continue to identify opportunities for reform. The executive order also expands the city’s Business Express Service Team, which will assign new businesses a client manager to guide them through permitting, inspections, and licensing processes. 

Mamdani’s small business reform announcement is not surprising to those who have followed his rise. In January 2025, before he was a national figure, he released a video called “NYC is Suffering from Halalflation,” in which he explained how licensing fees and regulatory hurdles made the street food more expensive. A few months later, he promised to cut fines and fees for small businesses by 50 percent in another campaign video. Then, two weeks after he took office, he signed an executive order that stated, “the City must ensure that it is not contributing to the affordability crisis through fees, civil penalties, or regulations that are outdated, unnecessary, or otherwise creating undue hardship for honest small businesses.” The executive order directed city agencies to recommend ways to eliminate barriers facing small businesses. Monday’s proposed reforms, outlined in the Overhauling Procedures and Expanding Navigation (OPEN) plan, are the “result of those conversations.” 

He has also attempted to improve government efficiency by creating the Commission on Government Efficiency (COGE). As Reason has noted before, COGE (a nod to Elon Musk’s DOGE) is gathering input from New Yorkers about ways to streamline government processes, but it’s unlikely the commission will meaningfully cut the size and scope of city government. 

Mamdani is clearly no libertarian icon. He has proposed opening government-run grocery stores, pushed for freezing the rent, and has called for higher taxes on the city’s top contributors. Mamdani’s free-market critics are well justified in opposing these policies. But if Mamdani’s critics are principled, they will welcome these pro-small business reforms. 

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