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Ambitious promises to make the city more affordable for residents catapulted progressive candidate the incoming mayor to his surprising victory on election day. Included are free buses, childcare for all, and a massive increase in low-cost housing.

However, making the city more affordable for residents is an costly government task, and numerous economists and politicians to Mamdani’s right argue he confronts too many obstacles to effectively follow through on his signature ideas.

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

Additionally, the city must secure state legislature approval to modify many revenue streams. An analyst pointed to the state assembly blocking the municipality from raising pet registration costs in a prior year due to a disagreement between the then mayor and a state representative.

“The dramatic way of putting it is the City cannot increase dog licensing fees without state legislature approval, and it was true then, and it remains the case today,” he said.

However, analysts highlight tailwinds: Mamdani’s proposals are widely supported and would solve basic problems. Democrats now have significant control in the legislature, and some identify financial and viable routes to implementing the plans a success.

How might Mamdani pay for his bold program? We broke it down by revenue source and proposal.

Generating Revenue

The Mamdani campaign estimates it could raise approximately $10bn by raising the corporate tax rate, taxes on the wealthy, and current government revenues.

Detractors claim companies and the wealthy will relocate, but this is contradicted by credible research. Moreover, the corporate tax is on earnings made in the state regardless of where a company is based, making the point at least partially irrelevant.

Corporate Tax Increase

Mamdani estimates a state tax increase between 7.25% and 11.5% on corporate profits 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. Legislative leaders have previously backed comparable ideas, but the governor is against increasing levies.

Yet, the state leader supports childcare for all, a highly favored initiative because child services is commonly seen as cost-prohibitive, said one policy director. It would be difficult for centrist lawmakers to “oppose passing a historical initiative”, he added. “Nobody argues ‘We shouldn’t do anything to reduce childcare costs.’”

What’s been lacking, he said, has been a leader like Mamdani who declares: “Yeah, it costs money, and we will raise taxes to make it happen.”

Increasing Taxes on the Wealthy

The proposal aims to generating $4bn with a 2% hike on those earning above $1m annually. Although it’s a city tax, the state legislature must approve the increase, and the proposal is generally resisted by centrist lawmakers.

But there is a feasible route, he noted. Increasing revenue on the wealthy is broadly popular and, as with the corporate tax increase, using the proceeds to support favored initiatives helps to promote in Albany.

Halt on Rent Increases

Regarding cost, a rent freeze on rent-controlled apartments is the easiest to implement – it’s nearly free. But, a halt must be authorized by the rent guidelines board, and there might not exist enough support on it until Mamdani appoints members with his own appointments.

Free and Fast Transit

Mamdani projects fare-free transit will cost at least seven hundred million dollars, which factors in an evasion rate of 48%. Observers suggest Mamdani could likely pay for the expense by optimizing or cutting other programs in the city’s $116bn annual spending plan.

City-Owned Food Markets

A trial initiative for five city-owned grocery stores that would be built in neglected “areas lacking food access” is projected at $60m and could additionally be funded by shifting focus in the $116bn budget.

Constructing Low-Cost Homes Properties

Numerous commentators to the right of Mamdani have dismissed the proposal to spend approximately $100bn developing two hundred thousand affordable units over 10 years, mainly because it would necessitate substantial borrowing. The expert said those arguing against this aspect mostly overlook that the plan is not to take on $100bn immediately – the liability would be accrued and repaid in tranches over several government terms.

He also stressed the plan does not call for no-cost homes, but affordable housing that would generate revenue to reduce loans. Moreover, the projects could in part be privately financed.

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

Universal Childcare

Implementing universal childcare would require between $2.5bn and twelve billion dollars by most estimates, based on whether it is a city or state program and other factors. Financing is the big question mark – can the corporate and wealth taxes pass Albany? An expert commented he anticipated negotiated adjustments, as is typical with large-scale plans.

“The things that Mamdani promised will likely get a haircut,” he remarked. “Furthermore the governor’s expressed opposition to revenue hikes may just face reality – she probably can’t get the things she wants on the spending side without compromise on the revenue side.”