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Ambitious pledges to transform the city more affordable for New Yorkers propelled progressive candidate the incoming mayor to his unlikely victory on election day. Among them are free buses, childcare for all, and a massive expansion in low-cost housing.

However, turning the city cost-effective for inhabitants is an expensive government task, and numerous economists and politicians to Mamdani’s right argue he faces numerous hurdles to meaningfully deliver on his signature ideas.

Further complicating the situation is the federal administration, which will likely pull funding for the city in an effort to undermine Mamdani and open up funding gaps that complicate efforts to fund fresh initiatives.

Additionally, the city must secure state legislature approval to adjust many revenue streams. One expert pointed to the state legislature blocking the city from increasing dog licensing fees in 2014 due to a disagreement between the then mayor and a lawmaker.

“A striking example of stating the issue is New York City cannot increase dog licensing fees without state approval, and it was true then, and it remains the case today,” he noted.

However, he and other experts point to favorable conditions: Mamdani’s proposals are widely supported and would address fundamental issues. Democrats now have large majorities in the state government, and some identify financial and viable routes to implementing the plans a success.

In what ways could Mamdani finance his ambitious program? We broke it down by revenue source and proposal.

Generating Revenue

The Mamdani campaign estimates it could raise about ten billion dollars by raising the business tax, taxes on the wealthy, and current government revenues.

Detractors say businesses and the wealthy will relocate, but this is contradicted by reliable studies. Moreover, the corporate tax is on earnings made in the region no matter where a business is based, making the point at least partially irrelevant.

Corporate Tax Hike

The mayor-elect estimates a rise in state taxes from 7.25% and 11.5% on business earnings would generate about five billion dollars, much of which would be directed to the city. State leaders would have to approve the proposal. State lawmakers have in the past supported comparable ideas, but the governor opposes increasing levies.

However, the state leader supports universal childcare, a very popular proposal because child services is widely viewed as too expensive, said one policy director. It would be difficult for centrist lawmakers to “oppose enacting a historical initiative”, he added. “No one says ‘We shouldn’t do anything to make childcare cheaper.’”

What’s been lacking, he said, has been a figure like Mamdani who declares: “Yes, it costs money, and we’re gonna increase revenue to get it done.”

Increasing Taxes on the Affluent

The proposal aims to raising $4bn with a two percent increase on those earning above $1m annually. Though it’s a city tax, the state government must authorize the increase, and the proposal is generally resisted by moderate Democrats.

However there is a feasible route, the expert said. Increasing taxes on the rich is widely accepted and, similar to the corporate tax increase, using the proceeds to support popular programs makes it easier to promote in Albany.

Rent Freeze

Regarding expense, a pause on rent hikes on rent-controlled apartments is the easiest to implement – it’s nearly free. But, a halt must be authorized by the rent guidelines board, and there might not exist sufficient backing on it until Mamdani fills it with his own appointments.

Free and Fast Buses

Mamdani estimates free buses will require a minimum of seven hundred million dollars, which includes an evasion rate of 48%. Analysts suggest Mamdani could probably pay for the cost by streamlining or reducing other programs in the municipal one hundred sixteen billion dollar city budget.

City-Owned Food Markets

A pilot program for five city-owned grocery stores that would be built in underserved “food deserts” is projected at $60m and could also be paid for by shifting focus in the one hundred sixteen billion dollar spending plan.

Building Affordable Housing Properties

Numerous commentators to the conservative side of Mamdani have dismissed the proposal to invest about $100bn developing two hundred thousand low-income homes over 10 years, mainly because it would require massive debt. He said those opposing this point mostly overlook that the initiative is not to take on $100bn at once – the liability would be accumulated and paid down in phases over multiple administrations.

He emphasized the proposal is not for no-cost homes, but affordable housing that would generate revenue to pay down debt. Furthermore, the developments could in part be funded by private investment.

“This is how the plan is feasible,” the expert concluded.

Childcare for All

Implementing universal childcare would cost between $2.5bn and $12bn by many projections, based on whether it is a municipal or state initiative and other factors. Financing is the big question mark – will the business and high-earner levies be approved in Albany? One analyst said he anticipated some compromise, as often happens with large-scale plans.

“The things that Mamdani pledged will probably be scaled back,” he remarked. “And the state leader’s expressed resistance to tax increases could face reality – she likely can’t get the things she desires on the spending side without compromise on the revenue side.”