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Ambitious pledges to transform the metropolis more affordable for residents catapulted progressive candidate the incoming mayor to his unlikely victory on Tuesday. Among them are free buses, childcare for all, and a large-scale increase in affordable homes.

However, making the city more affordable for inhabitants is an expensive government task, and many financial experts and elected officials to Mamdani’s right argue he faces too many hurdles to effectively follow through on his key proposals.

Adding complexity to 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 pay for new priorities.

Additionally, New York City must get state government approval to modify several revenue streams. One expert cited the state legislature stopping the city from raising dog licensing fees in a prior year due to a disagreement between the incumbent at the time and a lawmaker.

“The dramatic example of stating the issue is the City cannot increase dog licensing fees without state approval, and it was true then, and it remains the case today,” he said.

However, analysts point to tailwinds: Mamdani’s proposals are very popular and would address basic problems. The Democratic party now hold significant control in the state government, and several identify financial and viable routes to making the plans a success.

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

Generating Income

The Mamdani campaign projects it could generate about ten billion dollars by increasing the corporate tax rate, levies on the wealthy, and existing fee and tax collections.

Detractors say companies and the high-earners will move away, but that is disputed by reliable studies. Moreover, the corporate tax is on earnings made in the region no matter where a business is based, making the argument at least partially irrelevant.

Corporate Tax Increase

The mayor-elect estimates a state tax increase between 7.25% and 11.5% on corporate profits would produce about $5bn, a large portion of which would be funneled to New York City. The legislature and governor would have to authorize the plan. Legislative leaders have in the past supported similar proposals, but the state executive opposes raising taxes.

Yet, the governor backs childcare for all, a very popular proposal because child services is widely viewed as too expensive, stated one policy director. It would be challenging for centrist lawmakers to “resist enacting a historical program”, he added. “Nobody says ‘Nothing should be done to reduce childcare costs.’”

The missing element, he said, has been a leader like Mamdani who declares: “Yeah, it costs money, and we’re gonna raise taxes to make it happen.”

Raising Levies on the Wealthy

Mamdani’s plan calls for raising $4bn with a two percent hike on those earning more than $1m annually. Although it’s a city tax, the state legislature must approve the rise, and the proposal is typically opposed by centrist lawmakers.

But there is a feasible route, the expert noted. Increasing revenue on the rich is widely accepted and, as with the corporate tax increase, using the funds to support popular programs makes it easier to sell in the state capital.

Halt on Rent Increases

Regarding expense, a rent freeze on rent-controlled apartments is the easiest to implement – it’s minimally costly. However, a halt must be approved by the rent guidelines board, and there might not exist enough support on it until Mamdani appoints members with his own appointments.

Free and Fast Transit

The plan estimates fare-free transit will require a minimum of seven hundred million dollars, which factors in an fare-dodging percentage of forty-eight percent. Observers say Mamdani could probably pay for the expense by streamlining or cutting additional services in the municipal $116bn city budget.

Publicly Run Food Markets

A trial initiative for several public food markets that would be built in neglected “areas lacking food access” is estimated at sixty million dollars and could also be paid for by shifting priorities in the $116bn budget.

Constructing Affordable Housing Properties

Many people to the right of Mamdani have written off the plan to spend approximately one hundred billion dollars developing 200,000 affordable units over 10 years, largely because it would require substantial borrowing. The expert said those arguing against this point largely miss that the plan is not to borrow $100bn immediately – the liability would be accumulated and repaid in tranches over multiple administrations.

He emphasized the proposal does not call for free housing, but affordable housing that would generate revenue to pay down debt. Moreover, the developments could in part be privately financed.

“This is how the plan is feasible,” the expert said.

Childcare for All

Implementing universal childcare would require between $2.5bn and $12bn by most estimates, depending on whether it is a municipal or state initiative and additional variables. Funding is the big question mark – can the corporate and wealth taxes be approved in the state capital? One analyst said he expected negotiated adjustments, as is typical with large-scale plans.

“The things that Mamdani promised will likely be scaled back,” the expert said. “And the state leader’s stated resistance to tax increases could confront practical limits – she probably can’t get the things she wants on the spending side without compromise on the revenue side.”