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Ambitious pledges to make the city more affordable for New Yorkers propelled progressive candidate the incoming mayor to his surprising victory on Tuesday. Among them are free buses, childcare for all, and a massive increase in low-cost housing.

However, turning the urban center more affordable for inhabitants is an expensive public undertaking, and many economists and politicians to Mamdani’s conservative side 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 New York in an attempt to sabotage Mamdani and create funding gaps that complicate efforts to fund fresh initiatives.

Additionally, the city must secure state government authorization to adjust several income sources. One expert cited the state assembly stopping the city from increasing pet registration costs in 2014 due to a disagreement between the incumbent at the time and a state representative.

“The dramatic example of stating the issue is the City can’t raise dog licensing fees without state legislature approval, and that held true previously, and it’s true now,” he noted.

However, he and other experts point to tailwinds: Mamdani’s proposals are widely supported and would solve fundamental issues. The Democratic party now have significant control in the state government, and some identify financial and political pathways to making the proposals reality.

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

Generating Income

The Mamdani campaign projects it could generate approximately ten billion dollars by increasing the corporate tax rate, levies on the wealthy, and existing fee and tax collections.

Detractors say companies and the wealthy will relocate, but this is disputed by reliable studies. Additionally, the business levy is on profits made in the region no matter where a business is based, making the argument at least partially irrelevant.

Corporate Tax Hike

The mayor-elect calculates a rise in state taxes between seven point two five percent and eleven point five percent on corporate profits would generate around $5bn, much of which would be directed to New York City. The legislature and governor would have to authorize the proposal. Legislative leaders have in the past backed comparable ideas, but the governor opposes increasing levies.

Yet, the state leader backs childcare for all, a highly favored initiative because child services is widely viewed as too expensive, said one policy director. It would be challenging for centrist lawmakers to “oppose passing a landmark program”, he continued. “Nobody argues ‘We shouldn’t do anything to reduce childcare costs.’”

What’s been lacking, the expert said, has been a leader like Mamdani who declares: “Yes, it requires funding, and we will increase revenue to make it happen.”

Raising Levies on the Wealthy

Mamdani’s plan aims to raising $4bn with a 2% increase on those earning above $1m annually. Although it’s a city tax, the state legislature must authorize the increase, and the proposal is generally resisted by centrist Democrats.

However there is a feasible route, the expert said. Increasing taxes on the wealthy is widely accepted and, similar to the business tax hike, using the proceeds to fund popular programs makes it easier to promote in Albany.

Rent Freeze

In terms of cost, a pause on rent hikes on regulated housing is the simplest to implement – it’s nearly free. However, a halt must be approved by the rent guidelines board, and there may not be sufficient backing on it before Mamdani fills it with his preferred candidates.

Fare-Free and Efficient Transit

The plan projects fare-free transit will cost at least seven hundred million dollars, which includes an fare-dodging percentage of 48%. Observers say Mamdani could likely pay for the cost by optimizing or reducing other programs in the municipal $116bn city budget.

Publicly Run Food Markets

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

Constructing Affordable Housing Units

Many people to the conservative side of Mamdani have written off the plan to invest approximately one hundred billion dollars developing two hundred thousand affordable units over 10 years, largely because it would necessitate massive debt. He clarified those opposing this point largely overlook that the plan is does not involve to borrow one hundred billion dollars immediately – the debt would be accrued and repaid in phases over several government terms.

He emphasized the plan is not for no-cost homes, but affordable housing that would produce income to reduce loans. Furthermore, the developments could partially be funded by private investment.

“That’s the way the proposal adds up,” he 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. Financing is the big question mark – can the corporate and wealth taxes pass the state capital? One analyst commented he expected negotiated adjustments, as is typical with big proposals.

“Proposals that Mamdani pledged will probably be scaled back,” the expert remarked. “And the state leader’s expressed opposition to tax increases could confront practical limits – she probably can’t get the objectives she wants on the spending side without some flexibility on the revenue side.”