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Ambitious promises to transform the city less expensive for residents propelled progressive candidate the incoming mayor to his unlikely win on Tuesday. Among them are free buses, universal childcare, and a massive expansion in low-cost housing.

However, turning the city more affordable for inhabitants is an expensive government task, and many financial experts and politicians to Mamdani’s right argue he faces numerous hurdles to meaningfully deliver on his key proposals.

Further complicating the situation is the federal administration, which will likely pull funding for the city in an attempt to sabotage Mamdani and open up funding gaps that complicate efforts to fund new priorities.

Additionally, the city must secure state legislature approval to modify many income sources. An analyst pointed to the state legislature blocking the municipality from raising dog licensing fees in a prior year due to a disagreement between the incumbent at the time and a state representative.

“A striking example of putting it is the City can’t raise pet permit charges without state legislature approval, and it was true then, and it remains the case today,” the expert said.

Nonetheless, analysts point to tailwinds: Mamdani’s proposals are very popular and would address basic problems. Democrats now hold large majorities in the state government, and some see economic and political pathways to making the proposals a success.

In what ways could Mamdani pay for his ambitious program? We broke it down by revenue source and initiative.

Raising Revenue

His team estimates it could generate about $10bn by raising the business tax, taxes on the wealthy, and existing fee and tax collections.

Detractors claim companies and the wealthy will relocate, but that is disputed by reliable studies. Additionally, the business levy is on profits made in the region no matter where a business is based, rendering the argument largely moot.

Corporate Tax Increase

The mayor-elect estimates a state tax increase from seven point two five percent and eleven point five percent on business earnings would produce about $5bn, a large portion of which would be funneled to New York City. State leaders would have to approve the proposal. State lawmakers have previously supported comparable ideas, but the governor is against raising taxes.

Yet, the governor supports childcare for all, a highly favored initiative because child services is widely viewed as cost-prohibitive, said an expert. It would be difficult for moderate Democrats to “resist enacting a historical program”, he added. “No one argues ‘We shouldn’t do anything to reduce childcare costs.’”

What’s been lacking, the expert said, has been a figure like Mamdani who says: “Yeah, it costs money, and we’re gonna increase revenue to make it happen.”

Raising Levies on the Affluent

The proposal aims to raising $4bn with a two percent hike on those making more than one million dollars annually. Although it’s a city tax, the state legislature must approve the increase, and the idea is typically resisted by centrist lawmakers.

But there is a political pathway, he said. Increasing taxes on the wealthy is widely accepted and, as with the corporate tax increase, allocating the funds to support favored initiatives helps to sell in Albany.

Halt on Rent Increases

In terms of cost, a pause on rent hikes on rent-controlled apartments is the simplest to enforce – it’s nearly free. But, a halt must be approved by the housing panel, and there might not exist sufficient backing on it before Mamdani fills it with his preferred candidates.

Free and Fast Buses

The plan estimates free buses will require at least $700m, which includes an evasion rate of forty-eight percent. Analysts suggest Mamdani could likely cover the cost by optimizing or reducing additional services in the municipal one hundred sixteen billion dollar city budget.

City-Owned Grocery Stores

A pilot program for several public food markets that would be built in underserved “food deserts” is estimated at $60m and could additionally be funded by adjusting priorities in the one hundred sixteen billion dollar budget.

Constructing Low-Cost Homes Properties

Numerous people to the right of Mamdani have dismissed the proposal to invest about $100bn building 200,000 affordable units over 10 years, mainly because it would necessitate substantial borrowing. The expert clarified those arguing against this aspect mostly miss that the initiative is does not involve to take on one hundred billion dollars at once – the debt would be accrued and paid down in tranches over multiple administrations.

He emphasized the proposal does not call for free housing, but affordable housing that would produce income to reduce loans. Furthermore, the projects could in part be privately financed.

“That’s the way the plan adds up,” the expert concluded.

Childcare for All

Establishing childcare access for all would cost between $2.5bn and twelve billion dollars by most estimates, depending on whether it is a city or state program and other factors. Funding is the major uncertainty – can the business and high-earner levies pass the state capital? An expert said he anticipated negotiated adjustments, as is typical with large-scale plans.

“The things that Mamdani pledged will likely be scaled back,” he said. “And the state leader’s stated resistance to revenue hikes may just face reality – she likely cannot achieve the objectives she desires on the expenditure front without compromise on the revenue side.”