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Ambitious pledges to transform the city more affordable for residents catapulted democratic socialist the incoming mayor to his unlikely victory on election day. Among them are free buses, childcare for all, and a massive increase in low-cost housing.

However, making the city more affordable for residents is an expensive government task, and numerous economists and elected officials to Mamdani’s conservative side say he confronts numerous hurdles to effectively follow through on his signature ideas.

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

Additionally, New York City must get state government authorization to modify many income sources. One expert cited the state legislature stopping the city from raising dog licensing fees in 2014 due to a dispute between the then mayor and a lawmaker.

“A striking way of putting it is the City cannot increase dog licensing fees without state legislature approval, and it was true then, and it’s true now,” he said.

However, analysts point to tailwinds: Mamdani’s ideas are very popular and would solve fundamental issues. The Democratic party now hold large majorities in the legislature, and some identify economic and political pathways to making the proposals a success.

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

Generating Income

His team estimates it could raise approximately $10bn by raising the business tax, taxes on the wealthy, and current government revenues.

Critics claim businesses and the high-earners will move away, 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 largely irrelevant.

Corporate Tax Increase

Mamdani estimates a rise in state taxes from 7.25% and 11.5% on business earnings would generate about $5bn, a large portion of which would be funneled to New York City. The legislature and governor would have to approve the proposal. State lawmakers have in the past backed similar proposals, but the governor is against increasing levies.

However, the state leader supports universal childcare, a highly favored initiative because childcare is commonly seen as cost-prohibitive, said one policy director. It would be challenging for moderate Democrats to “resist passing a historical program”, he continued. “Nobody says ‘We shouldn’t do anything to reduce childcare costs.’”

What’s been lacking, he explained, has been a figure like Mamdani who says: “Yes, it requires funding, and we’re gonna raise taxes to make it happen.”

Increasing Levies on the Wealthy

Mamdani’s plan aims to generating four billion dollars with a two percent hike on those making more than $1m each year. Although it’s a city tax, the state legislature must approve the increase, and the proposal is typically resisted by centrist Democrats.

However there is a feasible route, he said. Raising revenue on the rich is broadly popular and, as with the business tax hike, using the funds to support favored initiatives makes it easier to promote in Albany.

Rent Freeze

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

Free and Fast Transit

Mamdani projects fare-free transit will require at least seven hundred million dollars, which includes an evasion rate of forty-eight percent. Observers suggest Mamdani could probably pay for the cost by streamlining or reducing other programs in the city’s one hundred sixteen billion dollar annual spending plan.

Publicly Run Food Markets

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

Building Low-Cost Homes Units

Numerous people to the conservative side of Mamdani have written off the proposal to spend about one hundred billion dollars developing two hundred thousand low-income homes over a decade, largely because it would require substantial borrowing. He said those arguing against this point mostly miss that the plan is not to borrow $100bn immediately – the debt would be accumulated and repaid in tranches over several government terms.

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

“That’s the way the proposal adds up,” he said.

Childcare for All

Establishing universal childcare would require from two point five billion dollars and $12bn by most estimates, depending on whether it is a municipal or state initiative and additional variables. Funding is the major uncertainty – can the corporate and wealth taxes pass Albany? One analyst said he expected some compromise, as is typical with big proposals.

“Proposals that Mamdani pledged will probably get a haircut,” he said. “Furthermore the governor’s expressed opposition to revenue hikes could confront practical limits – she likely cannot achieve the things she desires on the spending side without compromise on the revenue side.”