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Ambitious promises to transform the city more affordable for New Yorkers propelled progressive candidate the incoming mayor to his surprising victory on Tuesday. Among them are free buses, universal childcare, and a massive expansion in low-cost housing.

However, making the urban center cost-effective for inhabitants is an costly public undertaking, and numerous financial experts and elected officials to Mamdani’s conservative side argue he confronts too many obstacles to effectively follow through on his signature ideas.

Further complicating the situation is the federal administration, which will almost certainly pull funding for New York in an effort to sabotage Mamdani and create funding gaps that complicate efforts to pay for new priorities.

Additionally, the city must get state government authorization to modify many revenue streams. One expert pointed to the state assembly blocking the city from increasing dog licensing fees in 2014 due to a dispute between the then mayor and a state representative.

“A striking way of stating the issue is New York City cannot increase dog licensing fees without state legislature approval, and it was true then, and it remains the case today,” he noted.

However, he and other experts point to tailwinds: Mamdani’s proposals are widely supported and would address basic problems. Democrats now have large majorities in the state government, and several identify financial and viable routes to making the proposals reality.

How could Mamdani finance his bold agenda? We broke it down by revenue source and proposal.

Raising Income

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

Detractors say companies and the high-earners will move away, but this is contradicted by credible research. Moreover, the corporate tax is on profits made in the region regardless of where a company is located, making the point largely irrelevant.

Business Levy Hike

Mamdani estimates a state tax increase between 7.25% and 11.5% on business earnings would generate around five billion dollars, a large portion of which would be directed to the city. State leaders would have to approve the plan. State lawmakers have previously supported similar proposals, but the governor opposes raising taxes.

Yet, the governor backs childcare for all, a very popular proposal because child services is widely viewed as too expensive, said an expert. It would be difficult for moderate Democrats to “oppose passing a landmark program”, he added. “Nobody argues ‘We shouldn’t do anything to reduce childcare costs.’”

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

Raising Levies on the Wealthy

The proposal calls for raising $4bn with a two percent hike on those making more than one million dollars each year. Although it’s a municipal levy, the state legislature must authorize the rise, and the proposal is generally resisted by centrist Democrats.

But there is a feasible route, the expert noted. Raising revenue on the rich is widely accepted and, similar to the corporate tax increase, using the proceeds to fund favored initiatives makes it easier to promote in the state capital.

Rent Freeze

In terms of expense, a rent freeze on regulated housing is the easiest to implement – it’s minimally costly. However, a freeze must be authorized by the rent guidelines board, and there might not exist sufficient backing on it before Mamdani appoints members with his own appointments.

Fare-Free and Efficient Transit

The plan estimates fare-free transit will cost at least $700m, which factors in an fare-dodging percentage of forty-eight percent. Observers say Mamdani could likely pay for the cost by optimizing or reducing additional services in the municipal $116bn annual spending plan.

Publicly Run Food Markets

A pilot program for five city-owned grocery stores that would be established in neglected “areas lacking food access” is projected at $60m and could also be funded by shifting priorities in the one hundred sixteen billion dollar budget.

Building Affordable Housing Properties

Many commentators to the conservative side of Mamdani have dismissed the proposal to invest about $100bn building two hundred thousand affordable units over 10 years, mainly because it would require massive borrowing. The expert clarified those arguing against this aspect mostly miss that the plan is not to take on one hundred billion dollars at once – the liability would be accrued and repaid in phases over multiple administrations.

He also stressed the plan does not call for no-cost homes, but cost-effective residences that would generate revenue to reduce debt. Moreover, the developments could in part be funded by private investment.

“This is how the plan is feasible,” he concluded.

Childcare for All

Implementing universal childcare would cost from $2.5bn and $12bn by most estimates, based on whether it is a municipal or state initiative and other factors. Funding is the big question mark – will the corporate and wealth taxes pass Albany? An expert said he anticipated some compromise, as is typical with big proposals.

“The things that Mamdani pledged will likely be scaled back,” he said. “And the state leader’s expressed opposition to tax increases may just face reality – she likely can’t get the things she wants on the spending side without compromise on the tax side.”