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Bold pledges to make the city more affordable for residents propelled democratic socialist the incoming mayor to his unlikely victory on Tuesday. Included are fare-free transit, childcare for all, and a large-scale expansion in affordable homes.

However, making the city more affordable for residents is an costly government task, and many financial experts and politicians to Mamdani’s right say he faces too many obstacles to meaningfully deliver on his key proposals.

Adding complexity to matters is the federal administration, which will almost certainly 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, New York City must secure state government authorization to modify several revenue streams. One expert cited the state assembly blocking the municipality from increasing pet registration costs in 2014 due to a dispute between the then mayor and a lawmaker.

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

Nonetheless, analysts point to favorable conditions: Mamdani’s ideas are very popular and would solve fundamental issues. The Democratic party now have significant control in the state government, and several see economic and viable routes to making the plans a success.

How could Mamdani pay for his bold program? Here’s a detailed look by revenue source and initiative.

Generating Revenue

His team estimates it could generate approximately ten billion dollars by increasing the business tax, taxes on the wealthy, and existing fee and tax collections.

Critics say businesses and the wealthy will relocate, but this is disputed by credible research. Moreover, the corporate tax is on earnings made in the state regardless of where a company is based, making the argument largely irrelevant.

Business Levy Hike

Mamdani estimates a rise in state taxes between 7.25% and 11.5% on business earnings would generate around five billion dollars, much of which would be directed to New York City. State leaders would have to authorize the plan. Legislative leaders have previously backed comparable ideas, but the governor opposes raising taxes.

Yet, the state leader supports universal childcare, a very popular initiative because childcare is widely viewed as cost-prohibitive, stated an expert. It would be challenging for centrist lawmakers to “resist enacting a historical program”, he added. “No one says ‘Nothing should be done to make childcare cheaper.’”

What’s been lacking, he explained, has been a figure like Mamdani who declares: “Yeah, it requires funding, and we will increase revenue to make it happen.”

Raising Levies on the Wealthy

Mamdani’s plan aims to generating $4bn with a 2% hike on those earning more than one million dollars annually. Although it’s a city tax, the state government must approve the rise, and the idea is generally opposed by moderate Democrats.

But there is a feasible route, the expert said. Raising taxes on the rich is widely accepted and, as with the corporate tax increase, allocating the funds to support popular programs helps to promote in the state capital.

Rent Freeze

Regarding cost, a rent freeze on regulated housing is the easiest to enforce – it’s nearly free. However, a halt must be authorized by the rent guidelines board, and there may not be enough support on it until Mamdani appoints members with his own appointments.

Free and Fast Transit

The plan estimates fare-free transit will cost a minimum of seven hundred million dollars, which includes an fare-dodging percentage of 48%. Observers suggest Mamdani could likely cover the cost by optimizing or reducing other programs in the city’s one hundred sixteen billion dollar city budget.

Publicly Run Food Markets

A pilot program for several city-owned grocery stores that would be built in neglected “food deserts” is projected at $60m and could additionally be paid for by shifting priorities in the $116bn budget.

Constructing Affordable Housing Units

Many people to the right of Mamdani have dismissed the plan to spend approximately one hundred billion dollars building 200,000 low-income homes over 10 years, largely because it would require massive borrowing. The expert clarified those arguing against this point largely overlook that the initiative is not to take on $100bn immediately – the debt would be accumulated and paid down in tranches over multiple administrations.

He also stressed the plan does not call for no-cost homes, but affordable housing that would produce income to reduce loans. Furthermore, the projects could partially be privately financed.

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

Childcare for All

Implementing childcare access for all would cost from two point five billion dollars and twelve billion dollars by most estimates, based on whether it is a municipal or state initiative and additional variables. Financing is the big question mark – will the business and high-earner levies pass the state capital? An expert said he expected some compromise, as is typical with big proposals.

“Proposals that Mamdani pledged will likely be scaled back,” the expert said. “Furthermore the governor’s stated opposition to tax increases may just face reality – she probably can’t get the things she desires on the spending side without some flexibility on the revenue side.”