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Bold promises to transform the city more affordable for residents propelled progressive candidate the incoming mayor to his unlikely win on Tuesday. Included are fare-free transit, childcare for all, and a massive increase in affordable homes.

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

Adding complexity to the situation is the national government, which will almost certainly withhold financial support for the city in an attempt to sabotage Mamdani and open up budget holes that complicate efforts to fund new priorities.

Additionally, New York City must get state government authorization to adjust several income sources. One expert pointed to the state legislature stopping the municipality from increasing dog licensing fees in a prior year due to a disagreement between the incumbent at the time and a state representative.

“The dramatic example of putting it is the City can’t raise pet permit charges without state legislature approval, and it was true then, and it’s true now,” the expert said.

However, he and other experts highlight favorable conditions: Mamdani’s ideas are widely supported and would address fundamental issues. Democrats now have large majorities in the legislature, and several identify financial and political pathways to implementing the proposals a success.

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

Generating Income

His team estimates it could generate about $10bn by raising the corporate tax rate, levies on the wealthy, and current government revenues.

Critics say businesses and the high-earners will move away, but that is contradicted by credible research. Additionally, the corporate tax is on profits made in the region regardless of where a company is located, rendering the argument largely irrelevant.

Business Levy Increase

Mamdani calculates a rise in state taxes from 7.25% and 11.5% on corporate profits would generate around $5bn, much of which would be funneled to New York City. The legislature and governor would have to authorize the proposal. Legislative leaders have previously backed similar proposals, but the governor opposes raising taxes.

However, the governor supports universal childcare, a highly favored proposal because childcare is commonly seen as cost-prohibitive, stated one policy director. It would be challenging for moderate Democrats to “resist passing a historical initiative”, he continued. “No one argues ‘Nothing should be done to reduce childcare costs.’”

What’s been lacking, the expert explained, 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

Mamdani’s plan calls for generating four billion dollars with a 2% increase on those making above $1m each year. Though it’s a municipal levy, the state government must authorize the increase, and the idea is generally resisted by moderate lawmakers.

However there is a feasible route, he noted. Raising taxes on the rich is broadly popular and, similar to the business tax hike, allocating the funds to support popular programs helps to sell in the state capital.

Halt on Rent Increases

In terms of cost, a rent freeze on regulated housing is the easiest to enforce – it’s nearly free. However, a halt must be authorized by the housing panel, and there might not exist sufficient backing on it until Mamdani fills it with his preferred candidates.

Fare-Free and Efficient Transit

Mamdani estimates free buses will require a minimum of $700m, which includes an fare-dodging percentage of 48%. Observers suggest Mamdani could likely pay for the expense by optimizing or reducing other programs in the municipal $116bn city budget.

City-Owned Grocery Stores

A trial initiative for five public food markets that would be built in underserved “food deserts” is projected at $60m and could also be funded by adjusting focus in the $116bn budget.

Constructing Affordable Housing Properties

Many people to the right of Mamdani have dismissed the plan to invest about one hundred billion dollars building 200,000 low-income homes over a decade, largely because it would require substantial debt. He clarified those arguing against this aspect mostly overlook that the plan is does not involve to take on $100bn immediately – the debt would be accumulated and repaid in phases over several government terms.

He emphasized the proposal is not for free housing, but affordable housing that would produce income to pay down debt. Moreover, the projects could partially be funded by private investment.

“That’s the way the plan is feasible,” the expert concluded.

Universal Childcare

Establishing childcare access for all would cost between two point five billion dollars and twelve billion dollars by most estimates, based on whether it is a municipal or state initiative and additional variables. Funding is the major uncertainty – can the business and high-earner levies be approved in the state capital? One analyst said he anticipated negotiated adjustments, as often happens with big proposals.

“The things that Mamdani pledged will likely be scaled back,” the expert said. “Furthermore the state leader’s stated resistance to tax increases may just face reality – she likely can’t get the things she desires on the spending side without some flexibility on the revenue side.”