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Ambitious promises to make the city less expensive for New Yorkers catapulted progressive candidate the incoming mayor to his unlikely win on Tuesday. Among them are fare-free transit, childcare for all, and a large-scale expansion in affordable homes.

However, making the urban center more affordable for inhabitants is an costly government task, and many economists and elected officials to Mamdani’s conservative side argue he faces too many hurdles to meaningfully deliver on his signature ideas.

Adding complexity to the situation is the national government, which will likely pull funding for New York in an effort to undermine Mamdani and create budget holes that complicate efforts to pay for fresh initiatives.

Additionally, New York City must get state legislature approval to modify many revenue streams. One expert cited the state legislature stopping the city from raising dog licensing fees in 2014 due to a dispute between the incumbent at the time and a state representative.

“The dramatic example of putting it is New York City can’t raise dog licensing fees without state legislature approval, and that held true previously, and it remains the case today,” the expert said.

Nonetheless, he and other experts point to tailwinds: Mamdani’s ideas are widely supported and would address fundamental issues. Democrats now hold large majorities in the legislature, and several identify financial and political pathways to implementing the plans reality.

How might Mamdani finance his bold agenda? Here’s a detailed look by revenue source and initiative.

Generating Revenue

His team projects it could generate about ten billion dollars by raising the business tax, taxes on the wealthy, and current government revenues.

Detractors say companies and the wealthy will relocate, but this is contradicted by credible research. Additionally, the corporate tax is on earnings made in the state regardless of where a company is located, rendering the point largely irrelevant.

Business Levy Hike

Mamdani estimates a state tax increase from 7.25% and 11.5% on business earnings would generate about $5bn, a large portion of which would be funneled to the city. The legislature and governor would have to approve the proposal. State lawmakers have previously supported similar proposals, but the state executive is against increasing levies.

However, the state leader supports universal childcare, a very popular proposal because childcare is commonly seen as too expensive, stated an expert. It would be challenging for centrist lawmakers to “resist enacting a historical program”, he continued. “Nobody argues ‘Nothing should be done to make childcare cheaper.’”

What’s been lacking, the expert explained, has been a figure like Mamdani who declares: “Yeah, it costs money, and we will raise taxes to make it happen.”

Raising Taxes on the Affluent

The proposal aims to raising four billion dollars with a two percent increase on those making above $1m each year. Though it’s a municipal levy, the state government must approve the rise, and the idea is generally opposed by centrist lawmakers.

However there is a feasible route, the expert said. Raising revenue on the rich is widely accepted and, similar to the corporate tax increase, using the proceeds to fund favored initiatives helps to sell in Albany.

Halt on Rent Increases

Regarding cost, a rent freeze on rent-controlled apartments is the simplest to implement – it’s nearly free. But, a halt must be approved by the housing panel, and there might not exist enough support on it until Mamdani fills it with his own appointments.

Free and Fast Buses

Mamdani projects free buses will require at least seven hundred million dollars, which factors in an fare-dodging percentage of forty-eight percent. Observers suggest Mamdani could probably pay for the expense by streamlining or cutting additional services in the city’s $116bn annual spending plan.

City-Owned Food Markets

A trial initiative for several public food markets that would be built in underserved “food deserts” is estimated at sixty million dollars and could also be paid for by adjusting priorities in the $116bn budget.

Constructing Low-Cost Homes Properties

Numerous commentators to the right of Mamdani have written off the plan to invest about one hundred billion dollars developing two hundred thousand low-income homes over 10 years, largely because it would require substantial debt. He said those arguing against this point mostly overlook that the plan is does not involve to take on $100bn immediately – the debt would be accumulated and repaid in phases over multiple administrations.

He emphasized the plan does not call for free housing, but cost-effective residences that would produce income to pay down loans. Moreover, the projects could in part be privately financed.

“This is how the plan adds up,” the expert said.

Childcare for All

Implementing universal childcare would require from two point five billion dollars and twelve billion dollars by many projections, based on whether it is a municipal or state initiative and additional variables. Funding is the major uncertainty – will the business and high-earner levies pass the state capital? An expert said he anticipated some compromise, as often happens with big proposals.

“Proposals that Mamdani pledged will likely be scaled back,” the expert said. “Furthermore the state leader’s expressed opposition to tax increases may just confront practical limits – she likely cannot achieve the objectives she desires on the expenditure front without some flexibility on the revenue side.”