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Ambitious pledges to transform the city less expensive for residents catapulted democratic socialist the incoming mayor to his surprising victory on Tuesday. Among them are fare-free transit, universal childcare, and a massive expansion in affordable homes.

However, turning the urban center cost-effective for inhabitants is an expensive public undertaking, and many financial experts and elected officials to Mamdani’s right say he faces too many hurdles to effectively follow through on his signature ideas.

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 open up funding gaps that make it more difficult to fund fresh initiatives.

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

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

However, he and other experts highlight tailwinds: Mamdani’s proposals are widely supported and would solve fundamental issues. The Democratic party now have large majorities in the state government, and some identify financial and viable routes to implementing the proposals reality.

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

Raising Income

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

Critics say businesses and the wealthy will move away, but that is contradicted by credible research. Additionally, the business levy is on profits made in the state no matter where a business is located, rendering the argument largely moot.

Business Levy Increase

Mamdani calculates a rise in state taxes between 7.25% and eleven point five percent on corporate profits would generate around five billion dollars, much of which would be funneled to New York City. The legislature and governor would have to authorize the proposal. Legislative leaders have previously supported comparable ideas, but the state executive opposes raising taxes.

Yet, the governor supports childcare for all, a highly favored proposal because childcare is widely viewed as too expensive, said one policy director. It would be challenging for moderate Democrats to “oppose enacting a landmark initiative”, he added. “Nobody argues ‘Nothing should be done to make childcare cheaper.’”

What’s been lacking, the expert said, 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

The proposal calls for raising four billion dollars with a two percent hike on those making above $1m each year. Although it’s a city tax, the state legislature must authorize the rise, and the idea is generally opposed by centrist Democrats.

However there is a political pathway, the expert noted. Raising taxes on the rich is broadly popular and, similar to the corporate tax increase, allocating the proceeds to support favored initiatives makes it easier to promote in Albany.

Halt on Rent Increases

In terms of expense, a pause on rent hikes on regulated housing is the easiest to enforce – it’s minimally costly. But, a halt must be authorized by the rent guidelines board, and there may not be sufficient backing on it until Mamdani appoints members with his preferred candidates.

Free and Fast Buses

Mamdani projects fare-free transit will require at least $700m, which factors in an fare-dodging percentage of forty-eight percent. Analysts suggest Mamdani could likely pay for the expense by optimizing or reducing other programs in the city’s $116bn city budget.

City-Owned Food Markets

A trial initiative for five public food markets that would be established in underserved “areas lacking food access” is estimated at sixty million dollars and could additionally be paid for by adjusting priorities in the one hundred sixteen billion dollar spending plan.

Building Affordable Housing Properties

Many people to the right of Mamdani have dismissed the proposal to spend approximately one hundred billion dollars developing 200,000 affordable units over a decade, mainly because it would require massive borrowing. He said those opposing this point mostly miss that the plan is not to borrow $100bn at once – the liability would be accumulated and repaid in tranches over several government terms.

He emphasized the proposal does not call for no-cost homes, but affordable housing that would generate revenue to pay down loans. Furthermore, the developments could partially be funded by private investment.

“This is how the proposal adds up,” he said.

Universal Childcare

Implementing childcare access for all would require between $2.5bn and twelve billion dollars by most estimates, based on whether it is a municipal or state initiative and additional variables. Funding is the big question mark – will the corporate and wealth taxes be approved in the state capital? An expert commented he expected negotiated adjustments, as often happens with large-scale plans.

“The things that Mamdani pledged will likely get a haircut,” he said. “And the governor’s expressed opposition to tax increases may just face reality – she likely can’t get the objectives she desires on the expenditure front without compromise on the revenue side.”