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Ambitious promises to make the city more affordable for New Yorkers catapulted progressive candidate the incoming mayor to his unlikely win on Tuesday. Included are free buses, universal childcare, and a large-scale expansion in low-cost housing.

However, turning the urban center more affordable for inhabitants is an costly government task, and numerous economists and politicians to Mamdani’s right say he confronts numerous obstacles to meaningfully deliver on his signature ideas.

Adding complexity to matters 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 fund new priorities.

Additionally, the city must secure state legislature approval to modify many revenue streams. One expert cited the state legislature blocking the municipality 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 New York City cannot increase dog licensing fees without state legislature approval, and that held true previously, and it remains the case today,” he noted.

However, analysts point to favorable conditions: Mamdani’s ideas are widely supported and would solve basic problems. The Democratic party now have significant control in the legislature, and some identify economic and political pathways to making the plans a success.

How might Mamdani pay for his ambitious agenda? We broke it down by funding method and proposal.

Generating Income

His team estimates it could generate about $10bn by raising the business tax, taxes on the wealthy, and current government revenues.

Detractors claim companies and the wealthy will relocate, but this is disputed by credible research. Additionally, the corporate tax is on earnings made in the region no matter where a company is located, making the point largely irrelevant.

Business Levy Increase

The mayor-elect calculates a state tax increase from seven point two five percent and eleven point five percent on corporate profits would produce around five billion dollars, a large portion of which would be funneled to New York City. State leaders would have to authorize the proposal. Legislative leaders have previously backed similar proposals, but the state executive is against increasing levies.

However, the state leader supports childcare for all, a highly favored initiative because child services is widely viewed as too expensive, stated one policy director. It would be challenging for moderate Democrats to “resist enacting a historical initiative”, he added. “No one argues ‘Nothing should be done to make childcare cheaper.’”

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

Increasing Taxes on the Affluent

The proposal calls for generating $4bn with a 2% increase on those earning above $1m each year. Though it’s a municipal levy, the state legislature must authorize the rise, and the proposal is typically opposed by moderate Democrats.

But there is a political pathway, he said. Increasing taxes on the wealthy is widely accepted and, as with the corporate tax increase, using the proceeds to support popular programs makes it easier to sell in the state capital.

Rent Freeze

In terms of cost, a rent freeze on rent-controlled apartments is the simplest to enforce – it’s nearly free. However, a halt must be authorized by the rent guidelines board, and there may not be sufficient backing on it before Mamdani appoints members with his own appointments.

Fare-Free and Efficient Transit

Mamdani projects free buses will cost at least seven hundred million dollars, which factors in an evasion rate of 48%. Observers say Mamdani could probably pay for the expense by streamlining or cutting other programs in the city’s $116bn city budget.

Publicly Run Food Markets

A pilot program for several city-owned grocery stores that would be established in underserved “areas lacking food access” is projected at $60m and could also be paid for by shifting focus in the one hundred sixteen billion dollar spending plan.

Building Affordable Housing Properties

Many people to the conservative side of Mamdani have written off the plan to invest approximately one hundred billion dollars building 200,000 affordable units over a decade, largely because it would require substantial borrowing. He clarified those opposing this point largely miss that the initiative is not to borrow $100bn immediately – the debt would be accrued and paid down in phases over several government terms.

He also stressed the plan is not for no-cost homes, but affordable housing that would produce income to reduce debt. Furthermore, the developments could partially be funded by private investment.

“This is how the plan adds up,” he concluded.

Universal Childcare

Implementing childcare access for all would cost between two point five billion dollars and $12bn by many projections, depending on whether it is a municipal or state initiative and additional variables. Financing is the major uncertainty – can the corporate and wealth taxes be approved in Albany? An expert commented he anticipated negotiated adjustments, as often happens with large-scale plans.

“The things that Mamdani promised will likely get a haircut,” the expert remarked. “And the state leader’s expressed resistance to revenue hikes may just face reality – she likely can’t get the objectives she wants on the expenditure front without compromise on the tax side.”