Yes, New York City is in significant debt, which is common for a major global metropolis that finances massive infrastructure projects through borrowing. As of the 2026 fiscal year, the city's total outstanding debt is approximately $95 billion to $100 billion. This debt is primarily in the form of General Obligation (GO) bonds and Transitional Finance Authority (TFA) bonds used to fund the capital budget—which covers the construction of schools, bridges, water systems, and parks. While the raw number sounds astronomical, economists typically measure the "health" of this debt by the debt service ratio—the percentage of tax revenue used to pay back interest and principal. Currently, NYC stays near or below its self-imposed "15% ceiling," meaning the debt is considered manageable by credit rating agencies. However, the city faces long-term fiscal challenges due to rising costs for labor, migrant care, and "unfunded mandates" from the state. Despite the high debt load, NYC maintains a strong credit rating because its tax base is one of the most diverse and resilient in the world, ensuring it can continue to borrow for essential future growth.