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

However, making the city cost-effective for residents is an costly public undertaking, and numerous financial experts and politicians to Mamdani’s conservative side argue he faces too many obstacles to meaningfully deliver on his signature ideas.

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

Additionally, New York City must secure state government approval to adjust many revenue streams. An analyst cited the state legislature stopping the municipality from increasing dog licensing fees in a prior year due to a disagreement between the then mayor and a state representative.

“A striking example of stating the issue is New York City can’t raise dog licensing fees without state approval, and it was true then, and it’s true now,” the expert noted.

However, he and other experts point to favorable conditions: Mamdani’s proposals are very popular and would address fundamental issues. Democrats now hold large majorities in the state government, and several identify financial and viable routes to making the proposals a success.

In what ways might Mamdani pay for his ambitious program? We broke it down by funding method and proposal.

Generating Revenue

The Mamdani campaign estimates it could generate approximately $10bn by increasing the business tax, taxes on the wealthy, and current government revenues.

Critics say businesses and the high-earners will move away, but this is disputed 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.

Corporate Tax Hike

The mayor-elect calculates a state tax increase from 7.25% and 11.5% on business earnings would produce about five billion dollars, a large portion of which would be funneled to the city. The legislature and governor would have to approve the plan. Legislative leaders have in the past backed similar proposals, but the state executive opposes increasing levies.

However, the governor supports universal childcare, a very popular initiative because childcare is commonly seen as too expensive, stated an expert. It would be difficult for centrist lawmakers to “resist enacting a historical initiative”, he added. “No one argues ‘Nothing should be done to reduce childcare costs.’”

The missing element, the expert explained, has been a leader like Mamdani who says: “Yes, it requires funding, and we’re gonna increase revenue to make it happen.”

Raising Taxes on the Wealthy

The proposal aims to raising $4bn with a two percent hike on those making above one million dollars each year. Though it’s a municipal levy, the state legislature must authorize the rise, and the idea is typically opposed by moderate lawmakers.

But there is a feasible route, the expert said. Increasing taxes on the wealthy is broadly popular and, similar to the corporate tax increase, using the proceeds to support favored initiatives helps to promote in the state capital.

Rent Freeze

Regarding cost, a rent freeze on rent-controlled apartments is the simplest to enforce – it’s nearly free. But, a freeze must be approved by the housing panel, and there might not exist enough support on it until Mamdani fills it with his own appointments.

Fare-Free and Efficient Buses

Mamdani projects fare-free transit will require a minimum of seven hundred million dollars, which factors in an evasion rate of forty-eight percent. Analysts suggest Mamdani could probably cover the cost by streamlining or cutting other programs in the municipal $116bn city budget.

City-Owned Food Markets

A pilot program for five public food markets that would be established in neglected “food deserts” is projected at sixty million dollars and could also be funded by adjusting focus in the $116bn spending plan.

Constructing Affordable Housing Units

Many people to the right of Mamdani have dismissed the proposal to spend about $100bn developing two hundred thousand low-income homes over 10 years, largely because it would necessitate massive debt. The expert clarified those opposing this point mostly overlook that the plan is not to take on $100bn at once – the liability would be accrued and paid down in phases over multiple administrations.

He also stressed the plan does not call for no-cost homes, but affordable housing that would generate revenue to pay down debt. Moreover, the projects could in part be funded by private investment.

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

Universal Childcare

Implementing childcare access for all would require from $2.5bn and $12bn by most estimates, depending on whether it is a municipal or state initiative and additional variables. Funding is the major uncertainty – can the business and high-earner levies pass Albany? An expert commented he expected some compromise, as is typical with large-scale plans.

“Proposals that Mamdani pledged will likely be scaled back,” he said. “Furthermore the governor’s expressed resistance to revenue hikes could confront practical limits – she likely cannot achieve the things she wants on the expenditure front without some flexibility on the revenue side.”