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Bold promises to make the city less expensive for residents catapulted progressive candidate the incoming mayor to his surprising win on election day. Among them are free buses, universal childcare, and a large-scale increase in affordable homes.

However, making the city cost-effective for inhabitants is an expensive public undertaking, and many financial experts and elected officials to Mamdani’s right argue he confronts too many hurdles to effectively follow through on his signature ideas.

Further complicating the situation is the federal administration, which will likely pull funding for the city in an attempt to undermine Mamdani and create funding gaps that make it more difficult to fund new priorities.

Additionally, New York City must get state government approval to modify many income sources. One expert pointed to the state assembly blocking the municipality from raising dog licensing fees in 2014 due to a disagreement between the incumbent at the time and a lawmaker.

“A striking example of stating the issue is the City can’t raise dog licensing fees without state approval, and that held true previously, and it remains the case today,” the expert said.

Nonetheless, analysts point to tailwinds: Mamdani’s proposals are widely supported and would solve fundamental issues. Democrats now have large majorities in the state government, and several identify financial and political pathways to making the proposals reality.

How might Mamdani finance his ambitious agenda? Here’s a detailed look by revenue source and initiative.

Raising Income

The Mamdani campaign estimates it could raise approximately $10bn by raising the corporate tax rate, taxes on the affluent, and existing fee and tax collections.

Critics claim companies and the wealthy will relocate, but that is contradicted by reliable studies. Additionally, the corporate tax is on earnings made in the region regardless of where a company is based, rendering the argument at least partially moot.

Corporate Tax Hike

The mayor-elect calculates a state tax increase from seven point two five percent and 11.5% on corporate profits would generate about $5bn, much of which would be directed to the city. The legislature and governor would have to authorize the plan. State lawmakers have in the past supported similar proposals, but the governor is against raising taxes.

Yet, the governor backs childcare for all, a highly favored initiative because childcare is widely viewed as too expensive, said an expert. It would be difficult for centrist lawmakers to “oppose enacting a historical initiative”, he added. “Nobody says ‘Nothing should be done to make childcare cheaper.’”

What’s been lacking, the expert explained, has been a figure like Mamdani who says: “Yeah, it costs money, and we’re gonna increase revenue to get it done.”

Increasing Taxes on the Affluent

Mamdani’s plan aims to generating four billion dollars with a two percent increase on those making above one million dollars annually. Although it’s a municipal levy, the state government must approve the increase, and the proposal is typically resisted by centrist Democrats.

But there is a political pathway, he said. Increasing revenue on the rich is broadly popular and, similar to the business tax hike, using the proceeds to fund favored initiatives makes it easier to sell in the state capital.

Halt on Rent Increases

In terms of expense, a rent freeze on rent-controlled apartments is the easiest to implement – it’s minimally costly. But, a halt must be approved by the rent guidelines board, and there may not be sufficient backing on it before Mamdani fills it with his own appointments.

Free and Fast Buses

The plan projects free buses will cost at least $700m, which factors in an fare-dodging percentage of 48%. Analysts suggest Mamdani could likely pay for the expense by streamlining or reducing other programs in the city’s one hundred sixteen billion dollar annual spending plan.

Publicly Run Food Markets

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

Building Affordable Housing Units

Many people to the right of Mamdani have written off the proposal to invest about one hundred billion dollars developing two hundred thousand low-income homes over a decade, mainly because it would necessitate substantial debt. The expert clarified those arguing against this aspect mostly overlook that the initiative is not to borrow one hundred billion dollars at once – the liability would be accumulated and repaid in phases over multiple administrations.

He also stressed the proposal does not call for no-cost homes, but cost-effective residences that would produce income to pay down debt. Furthermore, the projects could in part be privately financed.

“This is how the proposal is feasible,” the expert concluded.

Universal Childcare

Implementing universal childcare would require from $2.5bn and twelve billion dollars by most estimates, depending on whether it is a city or state program and additional variables. Funding is the big question mark – will the corporate and wealth taxes pass the state capital? An expert said he anticipated negotiated adjustments, as is typical with big proposals.

“Proposals that Mamdani pledged will likely get a haircut,” the expert said. “And the governor’s stated resistance to tax increases could face reality – she likely cannot achieve the things she wants on the spending side without compromise on the tax side.”