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Bold pledges to make the city less expensive for New Yorkers propelled progressive candidate the incoming mayor to his surprising victory on election day. Among them are fare-free transit, universal childcare, and a large-scale expansion in affordable homes.

However, making the city more affordable for residents is an costly government task, and many economists and elected officials to Mamdani’s right argue he confronts numerous hurdles to meaningfully deliver on his signature ideas.

Further complicating the situation is the national government, which will likely withhold financial support for the city in an effort to undermine Mamdani and create budget holes that make it more difficult to fund new priorities.

Additionally, New York City must secure state legislature approval to adjust many 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 stating the issue is New York City cannot increase pet permit charges without state approval, and that held true previously, and it remains the case today,” the expert noted.

However, he and other experts highlight favorable conditions: Mamdani’s proposals are very popular and would address basic problems. Democrats now hold large majorities in the legislature, and several see economic and viable routes to making the proposals a success.

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

Generating Income

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

Critics claim companies and the high-earners will relocate, but this is contradicted by credible research. Moreover, the corporate tax is on earnings made in the state no matter where a business is based, making the point largely irrelevant.

Corporate Tax Hike

The mayor-elect estimates a state tax increase from 7.25% and 11.5% on corporate profits would generate around $5bn, a large portion of which would be directed to the city. The legislature and governor would have to approve the proposal. Legislative leaders have previously backed comparable ideas, but the state executive is against increasing levies.

Yet, the state leader backs universal childcare, a highly favored initiative because child services is widely viewed as too expensive, said an expert. It would be difficult for centrist lawmakers to “oppose enacting a historical program”, he continued. “Nobody argues ‘Nothing should be done to make childcare cheaper.’”

What’s been lacking, he explained, has been a leader like Mamdani who declares: “Yeah, it costs money, and we’re gonna raise taxes to get it done.”

Increasing Levies on the Affluent

The proposal aims to generating four billion dollars with a two percent increase on those making above one million dollars each year. Though it’s a municipal levy, the state government must approve the increase, and the idea is typically resisted by moderate Democrats.

But there is a political pathway, the expert noted. Raising revenue on the rich is widely accepted and, as with the corporate tax increase, allocating the funds to support popular programs makes it easier to promote in the state capital.

Rent Freeze

In terms of cost, a rent freeze on regulated housing is the easiest to enforce – it’s nearly free. However, a halt must be authorized by the housing panel, and there might not exist sufficient backing on it before Mamdani fills it with his preferred candidates.

Free and Fast Transit

Mamdani projects free buses will require at least $700m, which includes an evasion rate of forty-eight percent. Observers say Mamdani could likely cover the cost by optimizing or reducing other programs in the municipal $116bn city budget.

City-Owned Grocery Stores

A trial initiative for several city-owned grocery stores that would be built in neglected “areas lacking food access” is projected at sixty million dollars and could additionally be paid for by shifting focus in the $116bn spending plan.

Constructing Low-Cost Homes Properties

Many commentators to the conservative side of Mamdani have dismissed the plan to invest about one hundred billion dollars developing 200,000 affordable units over 10 years, largely because it would necessitate substantial borrowing. He said those opposing this point mostly overlook that the plan is not to take on $100bn at once – the debt 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 produce income to pay down debt. Furthermore, the developments could partially be funded by private investment.

“That’s the way the plan adds up,” he concluded.

Universal Childcare

Establishing universal childcare would cost from $2.5bn and twelve billion dollars by most estimates, based 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 Albany? One analyst commented he expected negotiated adjustments, as is typical with large-scale plans.

“The things that Mamdani promised will likely be scaled back,” the expert remarked. “Furthermore the state leader’s stated resistance to tax increases could confront practical limits – she likely can’t get the things she desires on the expenditure front without some flexibility on the revenue side.”