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

However, turning the urban center more affordable for residents is an expensive public undertaking, and numerous economists and elected officials to Mamdani’s conservative side say he faces numerous obstacles to meaningfully deliver on his key proposals.

Further complicating matters is the national government, which will almost certainly pull funding for New York in an attempt to sabotage Mamdani and create budget holes that make it more difficult to fund new priorities.

Additionally, the city must secure state government approval to adjust several income sources. One expert pointed to the state assembly stopping the city from raising pet registration costs in 2014 due to a dispute between the then mayor and a lawmaker.

“A striking way 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,” he noted.

Nonetheless, he and other experts highlight tailwinds: Mamdani’s ideas are widely supported and would address basic problems. The Democratic party now have large majorities in the state government, and several identify financial and viable routes to making the proposals reality.

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

Generating Revenue

His team 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 businesses and the wealthy will move away, but this is contradicted by credible research. Additionally, the business levy is on profits made in the state regardless of where a company is located, making the argument largely irrelevant.

Business Levy Hike

The mayor-elect calculates a state tax increase between 7.25% and 11.5% on corporate profits would generate around $5bn, a large portion of which would be funneled to New York City. State leaders would have to authorize the plan. State lawmakers have in the past supported comparable ideas, but the governor is against raising taxes.

Yet, the governor backs universal childcare, a very popular initiative because child services is widely viewed as cost-prohibitive, stated an expert. It would be challenging for moderate Democrats to “resist enacting a historical initiative”, he added. “No one says ‘We shouldn’t do anything to make childcare cheaper.’”

What’s been lacking, the expert explained, has been a leader like Mamdani who says: “Yes, it requires funding, and we will raise taxes to get it done.”

Increasing Levies on the Wealthy

Mamdani’s plan aims to generating $4bn with a 2% increase on those making more than one million dollars annually. Although it’s a municipal levy, the state government must authorize the increase, and the idea is typically opposed by centrist Democrats.

However there is a feasible route, the expert said. Raising taxes on the rich is widely accepted and, similar to the corporate tax increase, using the proceeds to support popular programs helps to promote in Albany.

Rent Freeze

Regarding cost, a rent freeze on regulated housing is the simplest to enforce – 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 appoints members with his own appointments.

Fare-Free and Efficient Transit

The plan projects free buses will require a minimum of $700m, which includes an evasion rate of forty-eight percent. Observers suggest Mamdani could probably cover the expense by optimizing or reducing additional services in the city’s one hundred sixteen billion dollar city budget.

City-Owned Grocery Stores

A trial initiative for five public food markets that would be established in neglected “food deserts” is projected at sixty million dollars and could also be funded by shifting focus in the one hundred sixteen billion dollar budget.

Constructing Affordable Housing Units

Numerous people to the conservative side of Mamdani have dismissed the plan to invest approximately $100bn building 200,000 affordable units over a decade, mainly because it would require substantial borrowing. He said those opposing this aspect mostly overlook that the plan is does not involve to borrow $100bn immediately – the liability would be accumulated and repaid in phases over multiple administrations.

He emphasized the proposal does not call for free housing, but affordable housing that would produce income to pay down loans. Moreover, the projects could partially be funded by private investment.

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

Childcare for All

Establishing childcare access for all would require from $2.5bn and twelve billion dollars by most estimates, 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 Albany? An expert said he expected some compromise, as often happens with large-scale plans.

“Proposals that Mamdani promised will probably be scaled back,” he remarked. “And the governor’s expressed opposition to tax increases may just face reality – she probably cannot achieve the objectives she desires on the spending side without compromise on the tax side.”