Senator Ted Cruz is facing criticism after warning that communist leaders often become billionaires by stealing and robbing from those they govern.
“Castro was a billionaire. Putin is a billionaire. The leaders of communist regimes are always rich. They steal and rob from those they govern,” Cruz said on Sean Hannity’s Fox News show Tuesday.
During his appearance on Fox News, Cruz used New York City Mayor Zohran Mamdani as the jumping-off point for a broader attack on communism, claiming that communist leaders historically enrich themselves while the people they govern become poorer.
Politics
“You know who does own a pied-a-terre? That would be Comrade Mamdani, who has a palatial estate in Uganda. But that’s always the case,” Cruz said.
Cruz also described Mamdani as “not a socialist” but “a Marxist” and “a full-on communist.”
Newsweek reached out to Cruz and Mamdani for comment via email.
Why It Matters
Mamdani is a democratic socialist politician who has become a frequent target of Republican criticism.
Cruz’s comments sparked debate amid larger global concerns about the fortunes of wealthy political leaders, including in the United States.
Cruz’s comments also drew attention because of President Donald Trump’s own billionaire status. Forbes estimates Trump’s net worth at roughly $6.4 billion as of July and has reported that his wealth increased substantially after returning to office.
Are Castro and Putin Actually Billionaires?
Cruz’s claim that Fidel Castro was a billionaire has circulated for years, but it has never been conclusively proven.
Forbes at one point estimated Castro’s wealth based on the state-controlled assets he was believed to effectively control, but Cuban officials strongly rejected those estimates. Independent verification was difficult because of the lack of transparency around Cuba’s economy.
That makes claims about Castro’s net worth impossible to verify definitively.
Similarly, claims that Vladimir Putin is a billionaire, or even one of the world’s wealthiest individuals, have been made by political opponents. But there’s also no publicly documented record of Putin’s holdings that definitively proves his net worth.
Putin is also not generally described as a communist. While he is a former KGB officer who served during the Soviet era, he has repeatedly criticized aspects of Soviet communism while promoting a nationalist and authoritarian political vision centered on the Russian state.
Even still, the criticism over communism in general may be overstated, said Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast.
“Has there been harm caused by communism throughout history? Absolutely. The same can be said for every economic ‘ism’ when all is said and done,” Thompson said.
Is Mamdani a Communist?
Cruz’s characterization of Mamdani as a communist is also disputed.
Mamdani identifies as a democratic socialist and has been associated with the Democratic Socialists of America. Democratic socialism generally advocates a mixed economy, democratic institutions and expanded social welfare programs.
“I was elected as a democratic socialist, and I will govern as a democratic socialist. I will not abandon my principles for fear of being deemed radical,” Mamdani said during his inaugural address.
While Republicans frequently describe democratic socialists as communists, the two ideologies are generally treated as distinct by political scientists.
The Uganda Property Claim
Cruz also referred to what he called Mamdani’s “palatial estate.”
Reports in 2025 detailed a family property in Uganda owned by Mamdani’s parents, Mahmood Mamdani and Mira Nair, that had been listed on Airbnb for years. The property is a large home near Kampala with views of Lake Victoria that is sometimes rented to visitors.
While Cruz said it was Mamdani’s, it is owned by his family members, not Mamdani himself.
Critics also say Cruz’s comments about billionaire status don’t always reflect whether a politician is actually corrupt.
“What interests me is that Cruz reached for the wrong measurement. Net worth is a terrible test for whether a leader is looting. Plenty of crooked officials never crack a million. Plenty of honest ones are already rich when they arrive,” Michael Ryan, a finance expert and the founder of MichaelRyanMoney.com, told Newsweek.
“Wealth isn’t the evidence. The direction of the money is. Did policy move toward the leader’s own holdings? Did their businesses get carve-outs competitors didn’t? Did public spending land with people who owe them?”
What About Trump?
Cruz’s comments drew immediate pushback online because of Americans’ escalating scrutiny of the president’s personal finances.
Forbes estimated President Donald Trump’s net worth at roughly $6.4 billion as of July, making him one of the wealthiest people ever to serve as president. Forbes also reported that Trump’s wealth increased substantially after his return to the White House due to gains tied to cryptocurrency ventures and other business holdings.
Last year, Forbes reported Trump’s net worth had risen from about $4.3 billion in 2024 to roughly $7.3 billion a year later.
Still, many do not believe Cruz’s comments are inherently hypocritical just because Trump also is a billionaire.
“I don’t think it’s hypocritical because what Trump represents, through the lens of American capitalism, is the hero’s journey that has been sold in nearly every Disney movie and Western since the founding of this country,” Thompson said.
Cruz never mentioned Trump by name, and the increase in Trump’s net worth by itself does not establish any inherent wrongdoing. The White House has repeatedly denied any claims otherwise.
“I think everybody, the American public, believe it’s absurd for anyone to insinuate that this president is profiting off of the presidency,” White House Press Secretary Karoline Leavitt said previously.
What Happens Next
Political discourse over Mamdani is likely to continue as the New York City mayor has emerged as one of the most visible democratic socialist figures in American politics.
Cruz’s comments could reflect a larger debate in the 2026 midterm elections: whether extraordinary personal wealth among political leaders should be viewed as evidence of business success or a potential conflict of interest.
“Some will see it as hypocritical, seeing as Cruz has supported legislation easing the tax burden on American billionaires. Others will note his attempt to label this a problem with wealthy international leadership that is classified under the role of dictator,” Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek.
“Regardless of perspective, linking wealth to corruption is going to lead to reflection among Americans on who they’re voting for and those individuals’ moral convictions when money is a part of decision-making.”
Contact Newsweek editors on this story: Jason Lemon and Gray R. Thomas
