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Ambitious promises to transform the city less expensive for New Yorkers propelled progressive candidate the incoming mayor to his surprising win on Tuesday. Included are fare-free transit, universal childcare, and a massive expansion in low-cost housing.

However, making the urban center more affordable for inhabitants is an expensive public undertaking, and many economists and politicians to Mamdani’s right say he faces too many hurdles to effectively follow through on his key proposals.

Adding complexity to the situation is the federal administration, which will almost certainly withhold financial support for New York in an attempt to sabotage Mamdani and create budget holes that make it more difficult to fund new priorities.

Additionally, the city must get state government authorization to modify many income sources. One expert pointed to the state legislature stopping the city from raising dog licensing fees in 2014 due to a disagreement between the then mayor and a state representative.

“A striking way of putting it is New York City can’t raise dog licensing fees without state approval, and that held true previously, and it’s true now,” the expert said.

However, he and other experts point to favorable conditions: Mamdani’s proposals are widely supported and would solve basic problems. Democrats now have large majorities in the state government, and several identify financial and viable routes to making the proposals a success.

In what ways could Mamdani finance his bold program? Here’s a detailed look by funding method and proposal.

Raising Revenue

His team estimates it could raise approximately ten billion dollars by raising the business tax, taxes on the affluent, and current government revenues.

Detractors claim businesses and the wealthy will move away, but that is contradicted by credible research. Moreover, the corporate tax is on profits made in the region no matter where a company is based, making the point at least partially irrelevant.

Business Levy Increase

The mayor-elect estimates a state tax increase from 7.25% and 11.5% on business earnings would produce about $5bn, a large portion of which would be funneled to the city. State leaders would have to approve the proposal. State lawmakers have in the past backed similar proposals, but the governor opposes increasing levies.

However, the state leader supports childcare for all, a highly favored initiative because child services is commonly seen as cost-prohibitive, stated one policy director. It would be difficult for moderate Democrats to “resist enacting a landmark initiative”, he added. “No one argues ‘Nothing should be done to make childcare cheaper.’”

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

Increasing Taxes on the Wealthy

The proposal aims to raising $4bn with a 2% hike on those making more than one million dollars each year. Though it’s a city tax, the state legislature must approve the rise, and the idea is generally resisted by centrist Democrats.

However there is a political pathway, the expert said. Raising taxes on the wealthy is broadly popular and, as with the corporate tax increase, using the proceeds to support favored initiatives makes it easier to promote in Albany.

Rent Freeze

In terms of cost, a rent freeze on regulated housing is the easiest to enforce – it’s nearly free. But, a halt must be approved by the housing panel, and there may not be enough support on it before Mamdani fills it with his own appointments.

Free and Fast Transit

The plan estimates fare-free transit will require a minimum of $700m, which factors in an evasion rate of forty-eight percent. Analysts say Mamdani could likely cover the cost by optimizing or cutting other programs in the municipal $116bn city budget.

City-Owned Food Markets

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

Constructing Affordable Housing Properties

Many commentators to the right of Mamdani have dismissed the plan to spend approximately one hundred billion dollars developing two hundred thousand affordable units over 10 years, mainly because it would necessitate massive debt. He said those arguing against this aspect largely overlook that the plan is does not involve to borrow $100bn immediately – the liability would be accrued and repaid in tranches over several government terms.

He emphasized the plan is not for no-cost homes, but cost-effective residences that would generate revenue to pay down loans. Furthermore, the developments could in part be funded by private investment.

“That’s the way the proposal is feasible,” he said.

Childcare for All

Implementing childcare access for all would require between two point five billion dollars and twelve billion dollars 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 the state capital? An expert said he expected negotiated adjustments, as is typical with big proposals.

“Proposals that Mamdani pledged will likely get a haircut,” the expert said. “Furthermore the state leader’s expressed resistance to revenue hikes may just face reality – she likely can’t get the things she desires on the spending side without compromise on the tax side.”