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Ambitious pledges to make the metropolis 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 massive expansion in affordable homes.

However, making the urban center cost-effective for inhabitants is an expensive public undertaking, and numerous financial experts and politicians to Mamdani’s right say he faces too many obstacles to meaningfully deliver on his signature ideas.

Adding complexity to matters is the national government, which will almost certainly withhold financial support for the city in an attempt to sabotage Mamdani and create budget holes that make it more difficult to pay for fresh initiatives.

Additionally, the city must secure state government authorization to modify several income sources. An analyst pointed to the state assembly blocking the municipality from raising pet registration costs in 2014 due to a dispute between the then mayor and a lawmaker.

“The dramatic way of stating the issue is the City can’t raise dog licensing fees without state legislature approval, and it was true then, and it’s true now,” the expert said.

However, he and other experts highlight tailwinds: Mamdani’s proposals are widely supported and would address fundamental issues. Democrats now hold large majorities in the state government, and several identify financial and viable routes to making the plans a success.

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

Generating Income

The Mamdani campaign projects it could generate about $10bn by increasing the business tax, taxes on the affluent, and current government revenues.

Critics say companies and the high-earners will relocate, but that is contradicted by credible research. Moreover, the business levy is on profits made in the state regardless of where a business is located, making the argument at least partially moot.

Corporate Tax Increase

The mayor-elect calculates a rise in state taxes between seven point two five percent and 11.5% on business earnings would produce around $5bn, much of which would be directed to New York City. State leaders would have to authorize the proposal. State lawmakers have previously backed similar proposals, but the governor opposes raising taxes.

Yet, the state leader backs universal childcare, a very popular initiative because child services is widely viewed as too expensive, said one policy director. It would be difficult for centrist lawmakers to “oppose enacting a landmark initiative”, he continued. “Nobody argues ‘Nothing should be done to reduce childcare costs.’”

What’s been lacking, he said, has been a leader like Mamdani who says: “Yeah, it requires funding, and we will increase revenue to get it done.”

Raising Taxes on the Affluent

Mamdani’s plan calls for raising $4bn with a 2% increase on those making more than $1m each year. Although it’s a municipal levy, the state legislature must authorize the rise, and the proposal is typically opposed by moderate lawmakers.

But there is a feasible route, he noted. Raising taxes on the rich is broadly popular and, as with the corporate tax increase, using the proceeds to fund favored initiatives makes it easier to sell in the state capital.

Rent Freeze

In terms of cost, a rent freeze on regulated housing is the easiest to enforce – it’s minimally costly. However, a halt must be approved by the rent guidelines board, and there may not be enough support on it before Mamdani appoints members with his preferred candidates.

Fare-Free and Efficient Buses

Mamdani projects fare-free transit will require a minimum of $700m, which factors in an fare-dodging percentage of 48%. Analysts say Mamdani could likely pay for the expense by optimizing or reducing other programs in the city’s one hundred sixteen billion dollar annual spending plan.

City-Owned Grocery Stores

A pilot program for several city-owned grocery stores that would be established in underserved “areas lacking food access” is projected at sixty million dollars and could additionally be funded by adjusting priorities in the $116bn spending plan.

Building Affordable Housing Units

Many people to the right of Mamdani have dismissed the plan to invest about $100bn developing 200,000 affordable units over 10 years, largely because it would necessitate substantial borrowing. He clarified those arguing against this point mostly miss that the plan is not to take on one hundred billion dollars at once – the liability would be accumulated and paid down in tranches over several government terms.

He also stressed the proposal is not for no-cost homes, but cost-effective residences that would generate revenue to reduce loans. Furthermore, the developments could partially be privately financed.

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

Childcare for All

Establishing universal childcare would cost between two point five billion dollars and twelve billion dollars by many projections, based on whether it is a city or state program and other factors. Funding is the big question mark – will the corporate and wealth taxes be approved in the state capital? An expert said he anticipated some compromise, as is typical with big proposals.

“Proposals that Mamdani promised will likely get a haircut,” he said. “Furthermore the state leader’s expressed resistance to revenue hikes could face reality – she likely can’t get the objectives she wants on the spending side without compromise on the tax side.”