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Ambitious promises to make the city less expensive for residents propelled democratic socialist the incoming mayor to his unlikely victory on Tuesday. Among them are fare-free transit, 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 numerous financial experts and elected officials to Mamdani’s right say he confronts numerous obstacles to effectively follow through on his key proposals.

Further complicating the situation is the national government, which will likely pull funding for the city in an effort to undermine Mamdani and open up budget holes that complicate efforts to fund fresh initiatives.

Additionally, New York City must secure state government approval to modify many revenue streams. An analyst cited the state assembly blocking the municipality from increasing pet registration costs in 2014 due to a disagreement between the then mayor and a lawmaker.

“A striking way of stating the issue is the City cannot increase pet permit charges without state approval, and that held true previously, and it remains the case today,” the expert said.

However, analysts point to favorable conditions: Mamdani’s proposals are widely supported and would address basic problems. The Democratic party now have large majorities in the legislature, and several identify economic and political pathways to making the plans a success.

In what ways could Mamdani pay for his ambitious program? We broke it down by revenue source and initiative.

Raising Income

His team projects it could generate about ten billion dollars by raising the business tax, levies on the wealthy, and current government revenues.

Detractors claim businesses and the wealthy will move away, but that is contradicted by credible research. Additionally, the corporate tax is on profits made in the region regardless of where a business is located, making the argument at least partially moot.

Business Levy Hike

The mayor-elect estimates a rise in state taxes from 7.25% and 11.5% on corporate profits would produce about five billion dollars, much of which would be directed to New York City. The legislature and governor would have to authorize the plan. State lawmakers have previously backed comparable ideas, but the state executive opposes increasing levies.

Yet, the governor supports universal childcare, a very popular proposal because childcare is commonly seen as cost-prohibitive, stated one policy director. It would be difficult for moderate Democrats to “oppose passing a landmark program”, he continued. “Nobody says ‘Nothing should be done to make childcare cheaper.’”

What’s been lacking, he said, has been a figure like Mamdani who declares: “Yes, it requires funding, and we will raise taxes to make it happen.”

Raising Taxes on the Wealthy

The proposal aims to raising $4bn with a 2% hike on those making above $1m each year. Although it’s a city tax, the state government must authorize the increase, and the proposal is generally opposed by centrist lawmakers.

But there is a political pathway, he said. Raising taxes on the rich is widely accepted and, similar to the business tax hike, allocating the funds to fund favored initiatives makes it easier to promote in the state capital.

Rent Freeze

Regarding expense, a pause on rent hikes on rent-controlled apartments is the simplest to enforce – it’s nearly free. However, a halt must be approved by the housing panel, and there may not be sufficient backing on it until Mamdani fills it with his preferred candidates.

Free and Fast Buses

Mamdani estimates free buses will require at least $700m, which factors in an evasion rate of forty-eight percent. Observers suggest Mamdani could probably pay for the cost by optimizing or cutting additional services in the municipal $116bn annual spending plan.

City-Owned Food Markets

A trial initiative for five city-owned grocery stores that would be established in neglected “food deserts” is projected at $60m and could also be funded by adjusting focus in the $116bn spending plan.

Constructing Affordable Housing Units

Many commentators to the right of Mamdani have written off the proposal to spend approximately one hundred billion dollars building 200,000 low-income homes over a decade, mainly because it would require substantial debt. The expert clarified those opposing this aspect largely miss that the plan is not to take on $100bn immediately – the debt would be accrued and repaid in tranches over multiple administrations.

He also stressed the proposal does not call for no-cost homes, but cost-effective residences that would generate revenue to reduce debt. Moreover, the projects could in part be privately financed.

“That’s the way the plan is feasible,” he concluded.

Universal Childcare

Implementing universal childcare would require from two point five billion dollars and twelve billion dollars by many projections, based on whether it is a municipal or state initiative and additional variables. Funding is the big question mark – will the corporate and wealth taxes be approved in Albany? One analyst said he anticipated negotiated adjustments, as is typical with large-scale plans.

“Proposals that Mamdani promised will probably get a haircut,” he said. “And the governor’s expressed opposition to revenue hikes may just face reality – she likely cannot achieve the objectives she desires on the expenditure front without some flexibility on the tax side.”