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Bold promises to make the city more affordable for New Yorkers propelled progressive candidate the incoming mayor to his surprising win on election day. Among them are fare-free transit, childcare for all, and a massive increase in low-cost housing.

However, turning the urban center more affordable for residents is an expensive government task, and many economists and politicians to Mamdani’s right argue he faces numerous obstacles to meaningfully deliver on his signature ideas.

Adding complexity to matters is the federal administration, which will almost certainly withhold financial support for New York in an effort to sabotage Mamdani and create funding gaps that complicate efforts to pay for fresh initiatives.

Additionally, the city must get state legislature authorization to modify many revenue streams. One expert cited the state legislature stopping the city from raising dog licensing fees in 2014 due to a dispute between the then mayor and a lawmaker.

“The dramatic way of stating the issue is New York City cannot increase pet permit charges without state legislature approval, and that held true previously, and it remains the case today,” the expert noted.

Nonetheless, he and other experts point to favorable conditions: Mamdani’s proposals are widely supported and would solve basic problems. Democrats now have significant control in the state government, and some see economic and political pathways to making the plans reality.

How could Mamdani pay for his bold program? We broke it down by funding method and proposal.

Generating Income

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

Critics claim companies and the high-earners will relocate, but that is contradicted by credible research. Additionally, the corporate tax is on profits made in the region no matter where a business is based, rendering the argument largely irrelevant.

Corporate Tax Hike

The mayor-elect calculates a state tax increase between 7.25% and 11.5% on corporate profits would generate about five billion dollars, a large portion of which would be directed to New York City. State leaders would have to authorize the proposal. Legislative leaders have in the past backed similar proposals, but the governor is against raising taxes.

However, the state leader backs childcare for all, a very popular initiative because child services is widely viewed as cost-prohibitive, stated one policy director. It would be difficult for centrist lawmakers to “oppose enacting a landmark program”, he added. “Nobody says ‘Nothing should be done to reduce childcare costs.’”

What’s been lacking, the expert said, has been a leader like Mamdani who declares: “Yeah, it requires funding, and we’re gonna increase revenue to get it done.”

Increasing Levies on the Wealthy

Mamdani’s plan aims to generating four billion dollars with a 2% hike on those earning more than one million dollars each year. Though it’s a city tax, the state government must approve the rise, and the idea is generally opposed by centrist lawmakers.

But there is a political pathway, he noted. Raising taxes on the rich is widely accepted and, similar to the business tax hike, using the funds to fund favored initiatives helps to sell in Albany.

Rent Freeze

Regarding cost, a rent freeze on regulated housing is the easiest to implement – it’s nearly free. But, a freeze must be approved by the housing panel, and there may not be sufficient backing on it until Mamdani fills it with his own appointments.

Free and Fast Transit

The plan estimates free buses will cost a minimum of $700m, which factors in an evasion rate of 48%. Analysts suggest Mamdani could probably pay for the expense by streamlining or reducing additional services in the city’s one hundred sixteen billion dollar annual spending plan.

City-Owned Grocery Stores

A trial initiative for five public food markets that would be built in neglected “areas lacking food access” is projected at $60m and could also be paid for by adjusting priorities in the $116bn spending plan.

Building Affordable Housing Units

Many commentators to the right of Mamdani have dismissed the plan to spend approximately one hundred billion dollars building 200,000 affordable units over 10 years, largely because it would necessitate substantial debt. He clarified those opposing this point largely overlook that the plan is not to take on one hundred billion dollars immediately – the debt would be accumulated and paid down in phases over multiple administrations.

He also stressed the plan is not for no-cost homes, but affordable housing that would produce income to reduce debt. Moreover, the projects could in part be privately financed.

“This is how the plan 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 other factors. Financing is the major uncertainty – can the business and high-earner levies pass the state capital? An expert commented he expected some compromise, as often happens with large-scale plans.

“The things that Mamdani promised will likely get a haircut,” the expert remarked. “Furthermore the governor’s expressed opposition to revenue hikes could confront practical limits – she likely can’t get the things she wants on the expenditure front without compromise on the revenue side.”