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Ambitious promises to make the city more affordable for New Yorkers catapulted democratic socialist the incoming mayor to his surprising victory on election day. Included are fare-free transit, childcare for all, and a massive expansion in affordable homes.

However, turning the city more affordable for inhabitants is an costly government task, and many economists and politicians to Mamdani’s right say he faces too many obstacles to meaningfully deliver on his key proposals.

Adding complexity to matters is the national government, which will almost certainly pull funding for New York in an attempt to sabotage Mamdani and create funding gaps that make it more difficult to fund fresh initiatives.

Additionally, New York City must get state government authorization to adjust several income sources. An analyst pointed to the state legislature stopping the city from increasing dog licensing fees in 2014 due to a dispute between the then mayor and a state representative.

“The dramatic way of stating the issue is New York City cannot increase dog licensing fees without state approval, and that held true previously, and it remains the case today,” the expert said.

However, he and other experts point to favorable conditions: Mamdani’s proposals are widely supported and would address basic problems. The Democratic party now have large majorities in the legislature, and some see financial and viable routes to implementing the plans reality.

How might Mamdani finance his bold program? We broke it down by revenue source and proposal.

Raising Income

The Mamdani campaign estimates it could raise about ten billion dollars by raising the business tax, levies on the wealthy, and existing fee and tax collections.

Detractors claim businesses and the wealthy will move away, but this is disputed by credible research. Moreover, the corporate tax is on profits made in the region regardless of where a business is located, rendering the point largely moot.

Corporate Tax Increase

The mayor-elect estimates a state tax increase from 7.25% and 11.5% on business earnings would generate around five billion dollars, much of which would be directed to New York City. State leaders would have to authorize the plan. Legislative leaders have previously supported comparable ideas, but the state executive opposes raising taxes.

However, the governor backs universal childcare, a very popular initiative because childcare is commonly seen as cost-prohibitive, said an expert. It would be difficult for centrist lawmakers to “resist enacting a landmark program”, he continued. “Nobody argues ‘Nothing should be done to make childcare cheaper.’”

The missing element, he said, has been a leader like Mamdani who declares: “Yeah, it costs money, and we’re gonna increase revenue to make it happen.”

Increasing Taxes on the Affluent

The proposal calls for generating four billion dollars with a 2% hike on those making above $1m each year. Although it’s a city tax, the state legislature must approve the increase, and the proposal is generally opposed by moderate lawmakers.

But there is a political pathway, the expert noted. Increasing taxes on the wealthy is broadly popular and, as with the corporate tax increase, allocating the proceeds to fund popular programs makes it easier to sell in the state capital.

Rent Freeze

Regarding cost, a rent freeze on rent-controlled apartments is the simplest to enforce – it’s minimally costly. However, a freeze must be authorized by the housing panel, and there may not be enough support on it until Mamdani fills it with his own appointments.

Free and Fast Transit

Mamdani estimates fare-free transit will require at least $700m, which includes an evasion rate of forty-eight percent. Observers say Mamdani could probably cover the cost by streamlining or reducing additional services in the municipal $116bn city budget.

City-Owned Food Markets

A pilot program for several city-owned grocery stores that would be established in underserved “food deserts” is estimated at sixty million dollars and could also be paid for by adjusting priorities in the $116bn budget.

Constructing Affordable Housing Properties

Numerous people to the conservative side of Mamdani have dismissed the proposal to spend about $100bn developing two hundred thousand low-income homes over 10 years, largely because it would require substantial debt. The expert said those opposing this point largely overlook that the initiative is does not involve to borrow one hundred billion dollars immediately – the liability would be accumulated and repaid in tranches over several government terms.

He emphasized the proposal is not for no-cost homes, but cost-effective residences that would generate revenue to reduce debt. Moreover, the projects could in part be privately financed.

“This is how the proposal adds up,” he said.

Childcare for All

Establishing childcare access for all would require between two point five billion dollars and $12bn by most estimates, depending on whether it is a city or state program and additional variables. Funding is the big question mark – can the business and high-earner levies pass the state capital? An expert commented he anticipated negotiated adjustments, as often happens with large-scale plans.

“The things that Mamdani promised will probably get a haircut,” the expert said. “And the state leader’s expressed opposition to tax increases could face reality – she probably can’t get the objectives she wants on the expenditure front without compromise on the revenue side.”