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Ambitious pledges to transform the city more affordable for residents catapulted democratic socialist the incoming mayor to his unlikely victory on election day. Among them are free buses, childcare for all, and a large-scale expansion in affordable homes.

However, making the city more affordable for residents is an expensive public undertaking, and many economists and elected officials to Mamdani’s right argue he faces too many obstacles to effectively follow through on his signature ideas.

Further complicating the situation is the federal administration, which will likely pull funding for New York in an attempt to sabotage Mamdani and create funding gaps that make it more difficult to fund new priorities.

Additionally, New York City must get state legislature approval to adjust many income sources. An analyst cited the state legislature blocking the municipality from increasing pet registration costs in 2014 due to a dispute between the incumbent at the time and a state representative.

“A striking example of stating the issue is the City cannot increase pet permit charges without state legislature approval, and that held true previously, and it’s true now,” the expert noted.

Nonetheless, he and other experts point to tailwinds: Mamdani’s ideas are widely supported and would solve basic problems. Democrats now hold large majorities in the legislature, and some see economic and viable routes to implementing the plans reality.

How could Mamdani pay for his bold agenda? We broke it down by revenue source and initiative.

Generating Income

His team estimates it could generate about ten billion dollars by increasing the corporate tax rate, taxes on the wealthy, and current government revenues.

Critics say companies and the high-earners will relocate, but this is contradicted by reliable studies. Moreover, the business levy is on profits made in the state regardless of where a business is based, rendering the point at least partially moot.

Corporate Tax Increase

The mayor-elect calculates a state tax increase from 7.25% and 11.5% on corporate profits would produce around $5bn, a large portion of which would be funneled to New York City. The legislature and governor would have to approve the plan. Legislative leaders have in the past supported similar proposals, but the governor opposes raising taxes.

Yet, the state leader supports childcare for all, a highly favored proposal because childcare is commonly seen as cost-prohibitive, said an expert. It would be difficult for centrist lawmakers to “oppose enacting a landmark initiative”, he added. “Nobody says ‘Nothing should be done to make childcare cheaper.’”

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

Raising Levies on the Wealthy

Mamdani’s plan calls for raising four billion dollars with a 2% increase on those making more than $1m each year. Although it’s a municipal levy, the state government must authorize the increase, and the proposal is generally opposed by moderate Democrats.

But there is a feasible route, he said. Increasing revenue on the wealthy is widely accepted and, similar to the corporate tax increase, allocating the proceeds to support favored initiatives helps to promote in Albany.

Rent Freeze

In terms of cost, a pause on rent hikes on rent-controlled apartments is the easiest to implement – it’s nearly free. But, a freeze must be approved by the rent guidelines board, and there may not be enough support on it until Mamdani fills it with his preferred candidates.

Fare-Free and Efficient Buses

The plan estimates free buses will cost at least $700m, which includes an fare-dodging percentage of 48%. Analysts say Mamdani could probably cover the expense by streamlining or cutting other programs in the municipal one hundred sixteen billion dollar city budget.

Publicly Run Grocery Stores

A pilot program for several city-owned grocery stores that would be built in underserved “areas lacking food access” is estimated at $60m and could additionally be funded by adjusting priorities in the $116bn budget.

Building Low-Cost Homes Properties

Many commentators to the conservative side of Mamdani have written off the plan to spend about $100bn building two hundred thousand affordable units over 10 years, largely because it would necessitate substantial borrowing. The expert said those opposing this aspect mostly miss that the initiative is not to borrow $100bn at once – the debt would be accumulated and repaid in tranches over multiple administrations.

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

“That’s the way the proposal adds up,” the expert said.

Universal Childcare

Implementing universal childcare would require from $2.5bn and $12bn by many projections, depending on whether it is a city or state program and additional variables. Funding is the big question mark – can the corporate and wealth taxes pass Albany? An expert said he anticipated negotiated adjustments, as is typical with large-scale plans.

“Proposals that Mamdani pledged will likely be scaled back,” he remarked. “Furthermore the governor’s stated resistance to revenue hikes could face reality – she probably cannot achieve the objectives she wants on the expenditure front without some flexibility on the revenue side.”