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Bold promises to make the metropolis more affordable for residents catapulted democratic socialist the incoming mayor to his unlikely victory on election day. Included are fare-free transit, childcare for all, and a large-scale expansion in affordable homes.

However, making the city more affordable for inhabitants is an costly public undertaking, and many financial experts and politicians to Mamdani’s conservative side argue he confronts too many hurdles to meaningfully deliver on his key proposals.

Further complicating 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 fund fresh initiatives.

Additionally, New York City must secure state government approval to adjust many income sources. One expert pointed to the state assembly stopping the municipality from raising pet registration costs in a prior year due to a disagreement between the then mayor and a state representative.

“A striking example of stating the issue is New York City cannot increase dog licensing fees without state legislature approval, and that held true previously, and it remains the case today,” the expert said.

However, he and other experts point to favorable conditions: Mamdani’s proposals are widely supported and would address fundamental issues. The Democratic party now hold large majorities in the state government, and some see financial and political pathways to making the plans a success.

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

Generating Revenue

His team projects it could raise approximately $10bn by raising the business tax, taxes on the wealthy, and current government revenues.

Critics claim businesses and the high-earners will relocate, but that is disputed by credible research. Moreover, the business levy is on earnings made in the region no matter where a company is located, making the argument largely moot.

Business Levy Increase

Mamdani estimates a state tax increase from 7.25% and eleven point five percent on business earnings would produce around $5bn, much of which would be directed to New York City. The legislature and governor would have to authorize the plan. State lawmakers have previously backed comparable ideas, but the state executive opposes increasing levies.

Yet, 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 challenging for moderate Democrats to “oppose enacting a historical initiative”, he added. “No one says ‘Nothing should be done to reduce childcare costs.’”

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

Increasing Taxes on the Affluent

Mamdani’s plan calls for generating four billion dollars with a two percent increase on those earning more than $1m annually. Though it’s a municipal levy, the state government must approve the rise, and the idea is generally opposed by centrist lawmakers.

But there is a political pathway, he noted. Increasing taxes on the rich is broadly popular and, similar to the business tax hike, allocating the funds to fund favored initiatives helps to promote in Albany.

Rent Freeze

In terms of cost, a pause on rent hikes on rent-controlled apartments is the easiest to enforce – it’s nearly free. But, a halt must be authorized by the housing panel, and there might not exist sufficient backing on it before Mamdani fills it with his own appointments.

Fare-Free and Efficient Buses

Mamdani estimates free buses will cost a minimum of $700m, which factors in an evasion rate of 48%. Observers say Mamdani could probably cover the expense by optimizing or cutting other programs in the city’s one hundred sixteen billion dollar city budget.

City-Owned Food Markets

A pilot program for five public food markets that would be established in underserved “areas lacking food access” is estimated at $60m and could also be paid for by adjusting priorities in the one hundred sixteen billion dollar budget.

Building Affordable Housing Properties

Many people to the right of Mamdani have dismissed the proposal to invest about $100bn building two hundred thousand affordable units over 10 years, mainly because it would necessitate substantial debt. The expert said those arguing against this point mostly miss that the plan is not to borrow $100bn immediately – the liability would be accrued and repaid in phases over multiple administrations.

He emphasized the proposal does not call for no-cost homes, but affordable housing that would produce income to reduce loans. Furthermore, the developments could in part be funded by private investment.

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

Universal Childcare

Implementing universal childcare would cost from $2.5bn and $12bn by many projections, depending on whether it is a city or state program and additional variables. Funding is the big question mark – can the business and high-earner levies pass Albany? An expert commented he anticipated some compromise, as often happens with large-scale plans.

“The things that Mamdani pledged will likely get a haircut,” the expert said. “Furthermore the state leader’s expressed opposition to tax increases may just face reality – she probably can’t get the things she wants on the expenditure front without some flexibility on the revenue side.”