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Ambitious promises to transform the city less expensive for residents catapulted progressive candidate the incoming mayor to his unlikely victory on Tuesday. Included are free buses, childcare for all, and a large-scale expansion in low-cost housing.

However, making the urban center more affordable for residents is an costly public undertaking, and numerous financial experts and elected officials to Mamdani’s conservative side argue he faces numerous obstacles to effectively follow through on his signature ideas.

Adding complexity to matters is the national government, which will likely withhold financial support for New York in an effort to undermine Mamdani and create budget holes that make it more difficult to pay for fresh initiatives.

Additionally, New York City must get state legislature approval to modify several revenue streams. One expert pointed to the state legislature blocking the city from increasing pet registration costs in 2014 due to a disagreement between the then mayor and a state representative.

“The dramatic way of stating the issue is New York City can’t raise dog licensing fees without state legislature approval, and that held true previously, and it’s true now,” he noted.

However, he and other experts highlight favorable conditions: Mamdani’s proposals are widely supported and would solve basic problems. The Democratic party now hold significant control in the legislature, and several identify financial and viable routes to making the proposals a success.

In what ways might Mamdani finance his bold agenda? We broke it down by funding method and proposal.

Raising Income

The Mamdani campaign estimates it could raise about ten billion dollars by increasing the business tax, levies on the affluent, and current government revenues.

Critics say businesses and the wealthy will relocate, but that is contradicted by credible research. Moreover, the corporate tax is on profits made in the region no matter where a company is located, making the argument largely irrelevant.

Corporate Tax Hike

Mamdani calculates a state tax increase from 7.25% and eleven point five percent on business earnings would produce about $5bn, a large portion of which would be directed to New York City. State leaders would have to authorize the plan. State lawmakers have in the past supported similar proposals, but the governor opposes raising taxes.

However, the governor backs childcare for all, a highly favored initiative because childcare is widely viewed as cost-prohibitive, said an expert. It would be challenging for moderate Democrats to “resist passing a landmark initiative”, he added. “Nobody argues ‘Nothing should be done to make childcare cheaper.’”

The missing element, the expert explained, has been a leader like Mamdani who declares: “Yes, it costs money, and we will raise taxes to make it happen.”

Increasing Levies on the Wealthy

Mamdani’s plan aims to generating $4bn with a two percent increase on those earning above $1m annually. Although it’s a municipal levy, the state legislature must approve the rise, and the proposal is typically opposed by moderate lawmakers.

But there is a feasible route, he said. Raising taxes on the rich is widely accepted and, similar to the corporate tax increase, using the funds to support popular programs helps to sell in Albany.

Rent Freeze

In terms of expense, a pause on rent hikes on rent-controlled apartments is the easiest to enforce – it’s nearly free. However, a halt must be authorized by the housing panel, and there may not be enough support on it before Mamdani appoints members with his preferred candidates.

Free and Fast Transit

The plan projects fare-free transit will require a minimum of $700m, which includes an fare-dodging percentage of 48%. Observers suggest Mamdani could likely pay for the expense by streamlining or reducing additional services in the municipal one hundred sixteen billion dollar annual spending plan.

City-Owned Food Markets

A trial initiative for several city-owned grocery stores that would be established in underserved “food deserts” is estimated at sixty million dollars and could also be funded by adjusting priorities in the $116bn spending plan.

Building Low-Cost Homes Properties

Many commentators to the right of Mamdani have written off the proposal to invest approximately one hundred billion dollars developing 200,000 low-income homes over 10 years, largely because it would require massive borrowing. He clarified those arguing against this point largely overlook that the plan is not to take on one hundred billion dollars at once – the liability would be accrued and paid down in tranches over several government terms.

He also stressed the proposal is not for free housing, but affordable housing that would produce income to reduce debt. Moreover, the developments could partially be privately financed.

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

Universal Childcare

Establishing universal childcare would require from $2.5bn and $12bn by many projections, depending on whether it is a municipal or state initiative and additional variables. Funding is the major uncertainty – will the business and high-earner levies be approved in Albany? One analyst commented he anticipated negotiated adjustments, as is typical with large-scale plans.

“The things that Mamdani promised will likely get a haircut,” he said. “And the state leader’s stated opposition to tax increases may just face reality – she probably can’t get the objectives she desires on the expenditure front without some flexibility on the tax side.”