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Ambitious promises to transform the city more affordable for New Yorkers catapulted democratic socialist the incoming mayor to his unlikely win on Tuesday. Included are fare-free transit, universal childcare, and a large-scale expansion in affordable homes.

However, turning the city more affordable for inhabitants is an costly government task, and many economists and elected officials to Mamdani’s conservative side say he confronts too many obstacles to meaningfully deliver on his key proposals.

Adding complexity to matters is the national government, which will almost certainly pull funding for New York in an attempt to undermine Mamdani and create funding gaps that complicate efforts to pay for new priorities.

Additionally, New York City must secure state government approval to adjust several revenue streams. One expert pointed to the state legislature stopping the city from raising pet registration costs in 2014 due to a disagreement between the incumbent at the time and a state representative.

“A striking way of putting it is New York City cannot increase pet permit charges without state approval, and it was true then, and it remains the case today,” he noted.

However, he and other experts point to favorable conditions: Mamdani’s ideas are very popular and would solve basic problems. The Democratic party now have significant control in the state government, and several identify economic and political pathways to implementing the proposals a success.

In what ways could Mamdani finance his ambitious agenda? We broke it down by funding method and proposal.

Generating Revenue

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

Detractors claim businesses and the high-earners will move away, but that is disputed by reliable studies. Additionally, the corporate tax is on earnings made in the region no matter where a company is based, making the point largely moot.

Corporate Tax Increase

The mayor-elect calculates a rise in state taxes between seven point two five percent and eleven point five percent on business earnings would produce around $5bn, much of which would be funneled to the city. State leaders would have to authorize the proposal. Legislative leaders have previously supported similar proposals, but the governor opposes increasing levies.

Yet, the governor backs universal childcare, a highly favored proposal because child services is commonly seen as too expensive, said an expert. It would be challenging for centrist lawmakers to “oppose enacting a historical program”, he added. “Nobody argues ‘We shouldn’t do anything to make childcare cheaper.’”

The missing element, he said, has been a leader like Mamdani who says: “Yeah, it costs money, and we’re gonna raise taxes to make it happen.”

Raising Levies on the Wealthy

Mamdani’s plan aims to raising $4bn with a 2% hike on those making above one million dollars each year. Though it’s a city tax, the state legislature must authorize the increase, and the proposal is typically opposed by moderate lawmakers.

But there is a political pathway, the expert noted. Raising revenue on the rich is widely accepted and, similar to the business tax hike, using the proceeds to fund favored initiatives makes it easier to promote in Albany.

Halt on Rent Increases

Regarding cost, a pause on rent hikes on rent-controlled apartments is the easiest to implement – it’s nearly free. But, a halt must be authorized by the housing panel, and there might not exist enough support on it until Mamdani appoints members with his preferred candidates.

Free and Fast Buses

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 pay for the expense by optimizing or reducing additional services in the municipal $116bn annual spending plan.

City-Owned Food Markets

A pilot program for several public food markets that would be established in neglected “food deserts” is estimated at sixty million dollars and could also be funded by adjusting focus in the $116bn spending plan.

Building Low-Cost Homes Units

Many commentators to the right of Mamdani have dismissed the proposal to spend about one hundred billion dollars developing two hundred thousand low-income homes over 10 years, largely because it would necessitate substantial debt. The expert said those arguing against this point mostly miss that the initiative is not to borrow one hundred billion dollars immediately – the liability would be accumulated and repaid in tranches over several government terms.

He also stressed the plan is not for free housing, but affordable housing that would produce income to pay down debt. Moreover, the developments could in part be privately financed.

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

Universal Childcare

Implementing universal childcare would cost between two point five billion dollars and $12bn by many projections, based on whether it is a city or state program and other factors. Financing is the big question mark – will the business and high-earner levies be approved in Albany? An expert commented he expected negotiated adjustments, as is typical with big proposals.

“The things that Mamdani pledged will likely be scaled back,” the expert remarked. “And the governor’s stated resistance to revenue hikes could confront practical limits – she probably cannot achieve the things she desires on the spending side without compromise on the tax side.”