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Ambitious pledges to make the city more affordable for New Yorkers catapulted progressive candidate the incoming mayor to his unlikely win on election day. Included are free buses, universal childcare, and a massive expansion in low-cost housing.

However, turning the city cost-effective for residents is an expensive government task, and many economists and elected officials to Mamdani’s conservative side say he faces too many obstacles to meaningfully deliver on his key proposals.

Adding complexity to the situation is the federal administration, which will almost certainly withhold financial support for New York in an attempt to undermine Mamdani and create funding gaps that complicate efforts to fund new priorities.

Additionally, the city must get state government authorization to adjust several income sources. An analyst cited the state assembly stopping the city from increasing dog licensing fees in 2014 due to a dispute between the then mayor and a lawmaker.

“The dramatic way of putting it is the City cannot increase pet permit charges without state approval, and it was true then, and it’s true now,” the expert said.

However, analysts highlight tailwinds: Mamdani’s ideas are very popular and would solve fundamental issues. Democrats now have large majorities in the legislature, and some identify economic and viable routes to making the proposals a success.

In what ways might Mamdani finance his bold agenda? Here’s a detailed look by revenue source and proposal.

Raising Revenue

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

Detractors say companies and the wealthy will relocate, but that is contradicted by reliable studies. Moreover, the corporate tax is on profits made in the state no matter where a business is located, rendering the point at least partially moot.

Business Levy Increase

Mamdani estimates a state tax increase between seven point two five percent and 11.5% on corporate profits would produce around $5bn, much of which would be funneled to New York City. The legislature and governor would have to authorize the proposal. State lawmakers have previously backed comparable ideas, but the state executive opposes increasing levies.

Yet, the governor backs universal childcare, a highly favored proposal because childcare is widely viewed as too expensive, said an expert. It would be challenging for moderate Democrats to “oppose enacting a historical initiative”, he continued. “Nobody says ‘Nothing should be done to make childcare cheaper.’”

The missing element, the expert explained, has been a figure like Mamdani who declares: “Yes, it costs money, and we’re gonna increase revenue to make it happen.”

Raising Levies on the Affluent

Mamdani’s plan calls for generating $4bn with a two percent hike on those earning more than one million dollars each year. Though it’s a municipal levy, the state government must authorize the increase, and the proposal is typically resisted by moderate Democrats.

However there is a feasible route, he said. Increasing revenue on the wealthy is broadly popular and, as with the corporate tax increase, allocating the proceeds to support popular programs makes it easier to promote in Albany.

Rent Freeze

Regarding expense, a rent freeze on rent-controlled apartments is the simplest to implement – it’s nearly free. But, a freeze must be approved by the rent guidelines board, and there might not exist enough support on it until Mamdani fills it with his preferred candidates.

Free and Fast Transit

Mamdani projects free buses will require at least seven hundred million dollars, which factors in an evasion rate of 48%. Observers say Mamdani could probably cover the cost by streamlining or reducing other programs in the city’s $116bn city budget.

City-Owned Food Markets

A trial initiative for five city-owned grocery stores that would be built in neglected “food deserts” is projected at $60m and could also be paid for by adjusting focus in the one hundred sixteen billion dollar spending plan.

Building Low-Cost Homes Properties

Numerous commentators to the conservative side of Mamdani have written off the proposal to invest approximately one hundred billion dollars developing 200,000 low-income homes over 10 years, mainly because it would necessitate massive debt. The expert clarified those opposing this aspect largely miss that the plan is not to borrow $100bn at once – the debt would be accrued and paid down in tranches over multiple administrations.

He also stressed the proposal is not for no-cost homes, but cost-effective residences that would produce income to pay down loans. Moreover, the developments could partially be privately financed.

“This is how the proposal is feasible,” the expert said.

Childcare for All

Establishing childcare access for all would cost from two point five billion dollars and twelve billion dollars by most estimates, depending on whether it is a city or state program and other factors. Funding is the major uncertainty – will the business and high-earner levies pass the state capital? One analyst said he expected some compromise, as is typical with large-scale plans.

“The things that Mamdani promised will probably get a haircut,” he said. “Furthermore the governor’s expressed resistance to revenue hikes could confront practical limits – she likely can’t get the things she wants on the spending side without some flexibility on the revenue side.”