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Bold promises to make the city more affordable for New Yorkers catapulted progressive candidate the incoming mayor to his unlikely win on Tuesday. Among them are free buses, universal childcare, and a massive expansion in affordable homes.

However, turning the city cost-effective for residents is an expensive government task, and numerous financial experts and politicians to Mamdani’s conservative side argue he faces too many hurdles to meaningfully deliver on his signature ideas.

Further complicating the situation is the federal administration, which will likely pull funding for New York in an effort to sabotage Mamdani and open up funding gaps that complicate efforts to pay for fresh initiatives.

Additionally, the city must get state legislature authorization to adjust several revenue streams. An analyst pointed to the state assembly blocking the city from increasing dog licensing fees in 2014 due to a disagreement between the then mayor and a state representative.

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

However, analysts highlight tailwinds: Mamdani’s proposals are widely supported and would solve fundamental issues. The Democratic party now have large majorities in the legislature, and some see economic and viable routes to implementing the proposals a success.

How could Mamdani finance his ambitious program? Here’s a detailed look by funding method and proposal.

Raising Income

The Mamdani campaign estimates it could raise approximately $10bn by raising the corporate tax rate, taxes on the affluent, and current government revenues.

Detractors claim companies and the wealthy will move away, but that is contradicted by reliable studies. Additionally, the corporate tax is on profits made in the state regardless of where a business is located, making the point largely irrelevant.

Business Levy Increase

The mayor-elect calculates a state tax increase between seven point two five percent and eleven point five percent on corporate profits would produce around five billion dollars, much of which would be directed to New York City. State leaders would have to approve the plan. State lawmakers have in the past backed similar proposals, but the governor is against raising taxes.

However, the state leader backs universal childcare, a highly favored initiative because child services is commonly seen as cost-prohibitive, stated an expert. It would be difficult for moderate Democrats to “resist passing a landmark program”, he added. “Nobody 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: “Yeah, it costs money, and we will raise taxes to make it happen.”

Increasing Levies on the Wealthy

The proposal calls for raising four billion dollars with a two percent hike on those making more than one million dollars annually. Though it’s a city tax, the state government must approve the rise, and the proposal is generally resisted by centrist lawmakers.

But there is a political pathway, he said. Raising revenue on the rich is widely accepted and, similar to the corporate tax increase, using the funds to support favored initiatives makes it easier to promote in Albany.

Rent Freeze

In terms of cost, a rent freeze on regulated housing is the simplest to enforce – it’s nearly free. But, a halt must be approved by the rent guidelines board, and there may not be sufficient backing on it until Mamdani appoints members with his preferred candidates.

Free and Fast Transit

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

Publicly Run Grocery Stores

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

Constructing Low-Cost Homes Units

Many people to the right of Mamdani have written off the plan to spend approximately $100bn developing 200,000 affordable units over a decade, mainly because it would necessitate substantial debt. He clarified those arguing against this aspect mostly overlook that the plan is not to take on one hundred billion dollars immediately – the debt would be accumulated and repaid in tranches over several government terms.

He also stressed the proposal does not call for free housing, but cost-effective residences that would generate revenue to reduce debt. Furthermore, the projects could in part be privately financed.

“This is how the plan adds up,” the expert said.

Universal Childcare

Establishing universal childcare would require between two point five billion dollars and twelve billion dollars by many projections, based on whether it is a municipal or state initiative and additional variables. Financing is the major uncertainty – can the business and high-earner levies pass Albany? An expert said he anticipated some compromise, as often happens with large-scale plans.

“Proposals that Mamdani promised will likely be scaled back,” he said. “Furthermore the governor’s expressed opposition to tax increases may just confront practical limits – she likely can’t get the objectives she wants on the expenditure front without some flexibility on the tax side.”