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Bold promises to make the metropolis less expensive for residents catapulted democratic socialist the incoming mayor to his unlikely win on Tuesday. Among them are free buses, universal childcare, and a large-scale increase in low-cost housing.

However, turning the city more affordable for residents is an expensive public undertaking, and numerous economists and politicians to Mamdani’s right say he faces too many obstacles to meaningfully deliver on his signature ideas.

Adding complexity to matters is the federal administration, which will likely withhold financial support for the city in an effort to sabotage Mamdani and create funding gaps that make it more difficult to pay for new priorities.

Additionally, the city must secure state legislature authorization to adjust many revenue streams. An analyst cited the state legislature blocking the city from increasing dog licensing fees in 2014 due to a disagreement between the then mayor and a lawmaker.

“A striking example of stating the issue is New York City cannot increase pet permit charges without state approval, and that held true previously, and it’s true now,” he said.

However, analysts highlight tailwinds: Mamdani’s ideas are very popular and would solve basic problems. Democrats now have large majorities in the state government, and some see economic and political pathways to making the plans a success.

In what ways could Mamdani pay for his bold agenda? We broke it down by funding method and proposal.

Raising Income

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

Detractors say companies and the high-earners will move away, but this is contradicted by credible research. Moreover, the business levy is on profits made in the region regardless of where a company is based, making the point at least partially moot.

Corporate Tax Increase

Mamdani calculates a state tax increase from 7.25% and eleven point five percent on corporate profits would generate around five billion dollars, a large portion of which would be funneled to the city. The legislature and governor would have to authorize the proposal. State lawmakers have in the past backed similar proposals, but the state executive is against raising taxes.

However, the state leader backs childcare for all, a highly favored initiative because child services is widely viewed as too expensive, said an expert. It would be difficult for centrist lawmakers to “resist enacting a historical program”, he continued. “No one says ‘Nothing should be done to make childcare cheaper.’”

What’s been lacking, he explained, has been a leader like Mamdani who declares: “Yes, it requires funding, and we’re gonna increase revenue to get it done.”

Increasing Taxes on the Affluent

Mamdani’s plan aims to generating four billion dollars with a two percent hike on those earning more than $1m each year. Though it’s a municipal levy, the state government must authorize the rise, and the proposal is generally resisted by centrist Democrats.

But there is a feasible route, the expert said. Increasing revenue on the wealthy is widely accepted and, similar to the corporate tax increase, using the proceeds to support favored initiatives makes it easier to sell in Albany.

Halt on Rent Increases

In terms of expense, a rent freeze on regulated housing is the simplest to implement – it’s nearly free. But, a halt must be approved by the housing panel, and there may not be sufficient backing on it until Mamdani appoints members with his own appointments.

Free and Fast Buses

The plan estimates fare-free transit will cost at least $700m, which factors in an evasion rate of 48%. Analysts suggest Mamdani could likely cover the cost by optimizing or reducing other programs in the city’s one hundred sixteen billion dollar city budget.

City-Owned Grocery Stores

A trial initiative for five public food markets that would be established in neglected “food deserts” is estimated at sixty million dollars and could additionally be funded by shifting priorities in the one hundred sixteen billion dollar spending plan.

Constructing Low-Cost Homes Properties

Numerous commentators to the conservative side of Mamdani have dismissed the proposal to invest approximately $100bn building 200,000 low-income homes over 10 years, largely because it would require massive borrowing. He said those opposing this point mostly miss that the initiative is not to take on one hundred billion dollars at once – the debt would be accrued and paid down in tranches over multiple administrations.

He emphasized the proposal does not call for no-cost homes, but affordable housing that would produce income to pay down loans. Moreover, the projects could partially be funded by private investment.

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

Universal Childcare

Establishing universal childcare would require from two point five billion dollars and twelve billion dollars by most estimates, depending on whether it is a municipal or state initiative and other factors. Financing is the big question mark – can the business and high-earner levies be approved in Albany? One analyst said he expected some compromise, as often happens with big proposals.

“Proposals that Mamdani promised will probably get a haircut,” the expert said. “Furthermore the state leader’s stated opposition to revenue hikes could confront practical limits – she likely can’t get the things she wants on the spending side without some flexibility on the tax side.”