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Bold promises to make the city less expensive for residents catapulted democratic socialist the incoming mayor to his surprising victory on Tuesday. Among them are free buses, universal childcare, and a large-scale expansion in low-cost housing.

However, turning the city more affordable for residents is an costly public undertaking, and many financial experts and politicians to Mamdani’s right argue he faces too many hurdles to meaningfully deliver on his key proposals.

Adding complexity to matters is the national government, which will likely pull funding for New York in an attempt to undermine Mamdani and create funding gaps that make it more difficult to fund new priorities.

Additionally, the city must get state government approval to adjust several revenue streams. An analyst cited the state legislature blocking the city from raising pet registration costs in 2014 due to a dispute between the then mayor and a lawmaker.

“A striking way of putting it is the City can’t raise pet permit charges without state legislature approval, and it was true then, and it remains the case today,” the expert noted.

However, he and other experts highlight favorable conditions: Mamdani’s proposals are widely supported and would solve fundamental issues. The Democratic party now have large majorities in the state government, and some identify financial and viable routes to making the proposals a success.

In what ways could Mamdani pay for his ambitious program? Here’s a detailed look by funding method and proposal.

Raising Revenue

His team estimates it could generate about $10bn by increasing the corporate tax rate, levies on the wealthy, and current government revenues.

Critics claim businesses and the wealthy will relocate, but that is contradicted by credible research. Moreover, the corporate tax is on earnings made in the region no matter where a business is based, making the argument at least partially irrelevant.

Business Levy Increase

The mayor-elect calculates a rise in state taxes from 7.25% and eleven point five percent on business earnings would generate about five billion dollars, much of which would be funneled to New York City. The legislature and governor would have to approve the proposal. State lawmakers have previously supported similar proposals, but the state executive is against raising taxes.

Yet, the governor supports universal childcare, a very popular proposal because childcare is widely viewed as too expensive, said one policy director. It would be challenging for moderate Democrats to “resist enacting a historical program”, he added. “Nobody argues ‘We shouldn’t do anything to make childcare cheaper.’”

The missing element, the expert said, has been a figure like Mamdani who says: “Yes, it costs money, and we’re gonna raise taxes to get it done.”

Raising Taxes on the Affluent

Mamdani’s plan calls for generating $4bn with a two percent hike on those earning more than $1m each year. Though it’s a city tax, the state legislature must authorize the rise, and the idea is generally opposed by moderate lawmakers.

But there is a political pathway, he said. Increasing taxes on the rich is widely accepted and, similar to the corporate tax increase, using the funds to support popular programs makes it easier to sell in Albany.

Rent Freeze

In terms of expense, a rent freeze on rent-controlled apartments is the simplest to enforce – it’s nearly free. However, a halt must be approved by the rent guidelines board, and there may not be sufficient backing on it until Mamdani fills it with his preferred candidates.

Fare-Free and Efficient Buses

Mamdani estimates free buses will cost at least $700m, which factors in an fare-dodging percentage of 48%. Observers say Mamdani could probably pay for the expense by streamlining or cutting additional services in the municipal one hundred sixteen billion dollar city budget.

Publicly Run Food Markets

A pilot program for several city-owned grocery stores that would be built in underserved “food deserts” is estimated at sixty million dollars and could also be paid for by shifting focus in the one hundred sixteen billion dollar spending plan.

Constructing Low-Cost Homes Properties

Many commentators to the right of Mamdani have dismissed the proposal to spend about one hundred billion dollars building two hundred thousand low-income homes over a decade, mainly because it would necessitate substantial borrowing. He clarified those arguing against this point largely overlook that the initiative is does not involve to borrow $100bn at once – the liability would be accumulated and paid down in phases over multiple administrations.

He emphasized the plan is not for no-cost homes, but cost-effective residences that would produce income to reduce loans. Furthermore, the developments could in part be privately financed.

“That’s the way the proposal is feasible,” he said.

Childcare for All

Implementing universal childcare would require between $2.5bn and twelve billion dollars by many projections, based on whether it is a municipal or state initiative and other factors. Financing is the big question mark – will the corporate and wealth taxes pass Albany? One analyst commented he anticipated some compromise, as often happens with large-scale plans.

“The things that Mamdani pledged will likely get a haircut,” the expert said. “Furthermore the governor’s stated opposition to revenue hikes may just face reality – she probably can’t get the things she wants on the expenditure front without compromise on the revenue side.”