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Ambitious promises to make the metropolis less expensive for New Yorkers propelled progressive candidate the incoming mayor to his surprising win on election day. Included are free buses, universal childcare, and a massive expansion in affordable homes.

However, turning the city more affordable for residents is an expensive public undertaking, and numerous financial experts and elected officials to Mamdani’s conservative side say he confronts too many obstacles to effectively follow through on his signature ideas.

Adding complexity to the situation is the national government, which will likely pull funding for the city in an attempt to sabotage Mamdani and open up funding gaps that make it more difficult to fund new priorities.

Additionally, New York City must secure state legislature authorization to adjust many income sources. An analyst pointed to the state assembly stopping the municipality from increasing pet registration costs in a prior year due to a dispute between the then mayor and a state representative.

“The dramatic example of stating the issue is New York City cannot increase dog licensing fees without state legislature approval, and that held true previously, and it’s true now,” the expert noted.

Nonetheless, he and other experts highlight tailwinds: Mamdani’s proposals are very popular and would address basic problems. Democrats now have significant control in the legislature, and some see economic and political pathways to making the plans reality.

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

Raising Income

The Mamdani campaign estimates it could raise about $10bn by increasing the corporate tax rate, levies on the affluent, and current government revenues.

Detractors claim businesses and the wealthy will relocate, but that is contradicted by credible research. Moreover, the corporate tax is on profits made in the region regardless of where a company is located, making the argument largely irrelevant.

Corporate Tax Increase

Mamdani estimates a state tax increase between 7.25% and eleven point five percent on corporate profits would produce about $5bn, much of which would be funneled to the city. State leaders would have to approve the proposal. State lawmakers have previously supported similar proposals, but the state executive opposes increasing levies.

Yet, the state leader supports childcare for all, a very popular proposal because child services is commonly seen as cost-prohibitive, stated one policy director. It would be challenging for centrist lawmakers to “resist passing a historical program”, he continued. “Nobody says ‘Nothing should be done to reduce childcare costs.’”

What’s been lacking, the expert said, has been a figure like Mamdani who says: “Yes, it requires funding, and we will increase revenue to get it done.”

Increasing Taxes on the Affluent

Mamdani’s plan calls for raising $4bn with a 2% increase on those earning above $1m each year. Though it’s a city tax, the state government must approve the increase, and the proposal is generally opposed by centrist Democrats.

But there is a political pathway, he noted. Increasing taxes on the rich is broadly popular and, similar to the corporate tax increase, allocating the funds to support popular programs helps to promote in the state capital.

Halt on Rent Increases

In terms of expense, a rent freeze on rent-controlled apartments is the simplest to enforce – it’s nearly free. However, a freeze must be approved by the rent guidelines board, and there may not be sufficient backing on it before Mamdani appoints members with his own appointments.

Fare-Free and Efficient Transit

Mamdani estimates fare-free transit will require at least $700m, which includes an fare-dodging percentage of forty-eight percent. Observers say Mamdani could probably cover the cost by streamlining or cutting other programs in the city’s one hundred sixteen billion dollar annual spending plan.

Publicly Run Food Markets

A pilot program for several public food markets that would be built in neglected “areas lacking food access” is estimated at $60m and could also be funded by adjusting focus in the $116bn spending plan.

Building Affordable Housing Units

Numerous people to the conservative side of Mamdani have dismissed the plan to spend approximately one hundred billion dollars building 200,000 affordable units over a decade, largely because it would require substantial borrowing. The expert clarified those opposing this point largely overlook that the initiative is not to take on one hundred billion dollars immediately – the debt would be accrued and repaid in tranches over several government terms.

He also stressed the proposal is not for no-cost homes, but affordable housing that would generate revenue to pay down debt. Moreover, the developments could partially be privately financed.

“That’s the way the proposal is feasible,” he concluded.

Childcare for All

Implementing universal childcare would cost between $2.5bn and twelve billion dollars by many projections, based on whether it is a city or state program and other factors. Financing is the major uncertainty – will the business and high-earner levies pass the state capital? One analyst said he anticipated some compromise, as is typical with big proposals.

“Proposals that Mamdani pledged will likely get a haircut,” the expert remarked. “Furthermore the governor’s expressed resistance to revenue hikes could confront practical limits – she probably can’t get the objectives she desires on the spending side without some flexibility on the tax side.”