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Bold pledges to make the metropolis more affordable for New Yorkers catapulted progressive candidate the incoming mayor to his surprising win on Tuesday. Included are fare-free transit, childcare for all, and a large-scale expansion in affordable homes.

However, turning the city cost-effective for residents is an costly government task, and many financial experts and elected officials to Mamdani’s right argue he confronts numerous obstacles to meaningfully deliver on his key proposals.

Adding complexity to the situation is the federal administration, which will almost certainly withhold financial support for the city in an effort to sabotage Mamdani and create funding gaps that make it more difficult to fund new priorities.

Additionally, the city must get state legislature approval to modify many income sources. An analyst pointed to the state assembly stopping the city from increasing pet registration costs in 2014 due to a dispute between the incumbent at the time and a lawmaker.

“A striking way of stating the issue is New York City can’t raise pet permit charges without state legislature approval, and it was true then, and it’s true now,” the expert said.

Nonetheless, he and other experts highlight tailwinds: Mamdani’s ideas are very popular and would address fundamental issues. Democrats now have significant control in the state government, and some see financial and political pathways to making the proposals a success.

In what ways might Mamdani finance his bold agenda? We broke it down by revenue source and proposal.

Raising Income

The Mamdani campaign estimates it could raise about $10bn by raising the business tax, levies on the wealthy, and existing fee and tax collections.

Detractors say companies and the high-earners will move away, but this is disputed by credible research. Moreover, the business levy is on profits made in the state regardless of where a business is located, making the point at least partially moot.

Corporate Tax Hike

The mayor-elect estimates a rise in state taxes from seven point two five percent and 11.5% on corporate profits would generate about $5bn, a large portion of which would be funneled to the city. State leaders would have to authorize the plan. Legislative leaders have previously supported comparable ideas, but the state executive opposes raising taxes.

However, the governor supports childcare for all, a very popular initiative because child services is widely viewed as cost-prohibitive, stated one policy director. It would be difficult for moderate Democrats to “oppose passing a landmark program”, he added. “No one argues ‘We shouldn’t do anything to reduce childcare costs.’”

The missing element, he said, has been a figure like Mamdani who says: “Yeah, it requires funding, and we’re gonna raise taxes to make it happen.”

Increasing Taxes on the Wealthy

The proposal aims to generating $4bn with a two percent hike on those earning above one million dollars annually. Though it’s a city tax, the state legislature must authorize the increase, and the proposal is generally resisted by moderate Democrats.

However there is a feasible route, he noted. Raising taxes on the rich is widely accepted and, as with the corporate tax increase, allocating the proceeds to support favored initiatives helps to sell in Albany.

Rent Freeze

In terms of expense, a rent freeze on regulated housing is the easiest to implement – it’s minimally costly. However, a halt must be approved by the housing panel, and there may not be sufficient backing on it until Mamdani fills it with his preferred candidates.

Free and Fast Transit

Mamdani projects free buses will cost at least $700m, which factors in an evasion rate of 48%. Analysts suggest Mamdani could probably pay for the expense by streamlining or cutting additional services in the city’s $116bn annual spending plan.

Publicly Run Food Markets

A trial initiative for several city-owned grocery stores that would be built in neglected “food deserts” is projected at $60m and could also be funded by adjusting priorities in the $116bn budget.

Constructing Affordable Housing Properties

Numerous commentators to the right of Mamdani have dismissed the proposal to spend about $100bn developing 200,000 low-income homes over a decade, largely because it would require massive debt. The expert clarified those opposing this point mostly overlook that the plan is not to take on one hundred billion dollars immediately – the liability would be accumulated and repaid in phases over multiple administrations.

He also stressed the proposal is not for no-cost homes, but cost-effective residences that would produce income to pay down debt. Moreover, the projects could partially be funded by private investment.

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

Childcare for All

Implementing universal childcare would cost between $2.5bn and twelve billion dollars by many projections, depending on whether it is a municipal or state initiative and additional variables. Financing is the big question mark – will the business and high-earner levies pass Albany? One analyst commented he anticipated some compromise, as is typical with large-scale plans.

“The things that Mamdani promised will probably get a haircut,” the expert said. “Furthermore the state leader’s expressed opposition to tax increases could face reality – she probably cannot achieve the things she wants on the spending side without compromise on the revenue side.”