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Ambitious pledges to make the city less expensive for New Yorkers propelled progressive candidate the incoming mayor to his surprising victory on election day. Among them are free buses, universal childcare, and a large-scale increase in low-cost housing.

However, making the city more affordable for residents is an costly government task, and many financial experts and elected officials to Mamdani’s conservative side argue he faces too many obstacles to meaningfully deliver on his key proposals.

Adding complexity to the situation is the national government, which will likely pull funding for the city in an effort to undermine Mamdani and create funding gaps that complicate efforts to fund new priorities.

Additionally, New York City must secure state legislature approval to adjust several income sources. An analyst pointed to the state legislature stopping the municipality from raising pet registration costs in 2014 due to a disagreement between the then mayor and a state representative.

“A striking way of putting it is the City can’t raise pet permit charges without state approval, and that held true previously, and it’s true now,” the expert noted.

However, he and other experts point to favorable conditions: Mamdani’s proposals are very popular and would address fundamental issues. Democrats now hold large majorities in the legislature, and some see economic and political pathways to making the plans a success.

How could Mamdani finance his ambitious agenda? We broke it down by funding method and proposal.

Generating Revenue

The Mamdani campaign estimates it could generate about $10bn by increasing the corporate tax rate, taxes on the wealthy, and current government revenues.

Detractors say companies and the high-earners will move away, but this is contradicted by credible research. Additionally, the corporate tax is on profits made in the state regardless of where a company is based, making the point largely irrelevant.

Corporate Tax Hike

The mayor-elect calculates a rise in state taxes from 7.25% and eleven point five percent on corporate profits would produce about $5bn, much of which would be directed to New York City. The legislature and governor would have to authorize the plan. State lawmakers have previously supported similar proposals, but the governor opposes raising taxes.

However, the governor supports childcare for all, a very popular initiative because child services is commonly seen as cost-prohibitive, stated an expert. It would be challenging for moderate Democrats to “oppose passing a landmark initiative”, he continued. “Nobody says ‘We shouldn’t do anything to reduce childcare costs.’”

What’s been lacking, he explained, has been a figure like Mamdani who says: “Yeah, it costs money, and we will increase revenue to get it done.”

Raising Taxes on the Wealthy

Mamdani’s plan calls for raising $4bn with a two percent increase on those making more than $1m each year. Though it’s a municipal levy, the state legislature must authorize the rise, and the proposal is generally opposed by centrist lawmakers.

But there is a political pathway, the expert noted. Raising taxes on the wealthy is broadly popular and, similar to the business tax hike, using the proceeds to support favored initiatives makes it easier to sell in the state capital.

Halt on Rent Increases

Regarding expense, a rent freeze on rent-controlled apartments is the easiest to enforce – it’s nearly free. But, a freeze must be approved by the housing panel, and there might not exist sufficient backing on it until Mamdani fills it with his own appointments.

Fare-Free and Efficient Transit

Mamdani estimates free buses will cost a minimum of seven hundred million dollars, which includes an evasion rate of 48%. Analysts suggest Mamdani could probably pay for the cost by streamlining or reducing additional services in the municipal one hundred sixteen billion dollar city budget.

Publicly Run Grocery Stores

A pilot program for five public food markets that would be established in underserved “food deserts” is projected at $60m and could also be funded by adjusting priorities in the one hundred sixteen billion dollar spending plan.

Building Affordable Housing Properties

Many commentators to the right of Mamdani have written off the proposal to spend approximately $100bn building 200,000 low-income homes over 10 years, mainly because it would require massive debt. He clarified those opposing this aspect largely overlook that the initiative is does not involve to take on one hundred billion dollars immediately – the liability would be accrued and repaid in phases over several government terms.

He emphasized the plan is not for no-cost homes, but cost-effective residences that would produce income to reduce debt. Moreover, the projects could in part be funded by private investment.

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

Universal Childcare

Implementing universal childcare 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. Financing is the major uncertainty – can the business and high-earner levies be approved in the state capital? One analyst commented he anticipated some compromise, as often happens with big proposals.

“The things that Mamdani pledged will likely be scaled back,” the expert said. “Furthermore the state leader’s stated opposition to revenue hikes could confront practical limits – she likely cannot achieve the things she wants on the expenditure front without compromise on the revenue side.”