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Ambitious pledges to make the city less expensive for New Yorkers catapulted progressive candidate the incoming mayor to his unlikely victory on Tuesday. Among them are free buses, universal childcare, and a large-scale expansion in affordable homes.

However, making the urban center more affordable for inhabitants is an expensive government task, and numerous financial experts and politicians to Mamdani’s right say he faces too many hurdles to meaningfully deliver on his key proposals.

Further complicating the situation is the national government, which will almost certainly withhold financial support for New York in an effort to sabotage Mamdani and create budget holes that complicate efforts to pay for new priorities.

Additionally, New York City must get state government authorization to adjust several revenue streams. One expert pointed to the state legislature stopping the city from increasing dog licensing fees in 2014 due to a dispute between the incumbent at the time and a lawmaker.

“A striking example of stating the issue is the City can’t raise pet permit charges without state legislature approval, and it was true then, and it’s true now,” he said.

However, he and other experts point to tailwinds: Mamdani’s ideas are very popular and would address fundamental issues. The Democratic party now hold large majorities in the state government, and several identify economic and political pathways to making the proposals a success.

How could Mamdani pay for his bold program? Here’s a detailed look by revenue source and initiative.

Generating Revenue

His team estimates it could raise about $10bn by raising the corporate tax rate, taxes on the affluent, and current government revenues.

Critics claim businesses and the wealthy will relocate, but this is disputed by credible research. Moreover, the business levy is on profits made in the state no matter where a business is located, making the point at least partially irrelevant.

Business Levy Hike

The mayor-elect estimates a state tax increase from 7.25% and 11.5% on corporate profits would generate around $5bn, a large portion of which would be directed to New York City. The legislature and governor would have to authorize the plan. Legislative leaders have previously supported comparable ideas, but the governor opposes raising taxes.

However, the governor backs universal childcare, a very popular initiative because child services is widely viewed as cost-prohibitive, stated one policy director. It would be difficult for moderate Democrats to “resist enacting a historical program”, he added. “Nobody says ‘Nothing should be done to reduce childcare costs.’”

The missing element, he said, has been a leader like Mamdani who declares: “Yeah, it costs money, and we will raise taxes to get it done.”

Increasing Levies on the Wealthy

Mamdani’s plan calls for raising four billion dollars with a two percent hike on those earning more than one million dollars each year. Though it’s a city tax, the state legislature must authorize the increase, and the idea is generally resisted by moderate Democrats.

However there is a feasible route, he said. Raising revenue on the wealthy is broadly popular and, as with the corporate tax increase, using the proceeds to support favored initiatives makes it easier to promote in the state capital.

Rent Freeze

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

Fare-Free and Efficient Buses

The plan estimates free buses will cost a minimum of $700m, which factors in an evasion rate of forty-eight percent. Analysts suggest Mamdani could probably cover the expense by optimizing or reducing additional services in the municipal $116bn annual spending plan.

City-Owned Food Markets

A pilot program for five city-owned grocery stores that would be built in neglected “areas lacking food access” is estimated at sixty million dollars and could also be funded by shifting focus in the one hundred sixteen billion dollar spending plan.

Constructing Affordable Housing Properties

Numerous people to the conservative side of Mamdani have written off the proposal to invest about $100bn developing 200,000 low-income homes over a decade, mainly because it would require substantial debt. He said those arguing against this aspect mostly overlook that the plan is not to borrow $100bn at once – the liability would be accrued and repaid in tranches over several government terms.

He also stressed the proposal does not call for no-cost homes, but affordable housing that would produce income to reduce debt. Moreover, the developments could partially be privately financed.

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

Childcare for All

Establishing childcare access for all would require between two point five billion dollars and twelve billion dollars by many projections, depending on whether it is a city or state program and additional variables. Funding is the major uncertainty – will the business and high-earner levies be approved in Albany? One analyst commented he expected some compromise, as often happens with large-scale plans.

“Proposals that Mamdani pledged will likely get a haircut,” the expert remarked. “Furthermore the state leader’s expressed opposition to tax increases could face reality – she probably can’t get the things she desires on the expenditure front without compromise on the tax side.”