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Bold promises to make the metropolis more affordable for New Yorkers catapulted progressive candidate the incoming mayor to his surprising victory on election day. Included are free buses, universal childcare, and a massive increase in low-cost housing.

However, turning the city more affordable for residents is an expensive public undertaking, and many economists and politicians to Mamdani’s right argue he faces too many obstacles to meaningfully deliver on his signature ideas.

Further complicating the situation is the national government, which will likely withhold financial support for New York in an attempt to sabotage Mamdani and open up budget holes that make it more difficult to fund new priorities.

Additionally, New York City must get state legislature approval to modify several revenue streams. One expert pointed to the state legislature blocking the city from raising pet registration costs in a prior year due to a dispute between the incumbent at the time and a state representative.

“The dramatic way of stating the issue is the City cannot increase pet permit charges without state approval, and it was true then, and it’s true now,” he noted.

Nonetheless, he and other experts point to tailwinds: Mamdani’s proposals are widely supported and would address basic problems. The Democratic party now have large majorities in the state government, and some identify economic and viable routes to making the plans a success.

How could Mamdani pay for his bold agenda? We broke it down by revenue source and initiative.

Raising Income

The Mamdani campaign estimates it could raise approximately $10bn by increasing the business tax, taxes on the wealthy, and existing fee and tax collections.

Detractors say businesses and the wealthy will move away, but that is contradicted by reliable studies. Moreover, the business levy is on earnings made in the state no matter where a business is located, rendering the point at least partially moot.

Business Levy Hike

Mamdani calculates a state tax increase from 7.25% and eleven point five percent on corporate profits would produce around five billion dollars, a large portion of which would be directed to the city. The legislature and governor would have to authorize the proposal. Legislative leaders have in the past supported similar proposals, but the governor opposes increasing levies.

However, the state leader supports universal childcare, a highly favored initiative because childcare is widely viewed as too expensive, said one policy director. It would be difficult for centrist lawmakers to “oppose passing a landmark program”, he continued. “No one says ‘Nothing should be done to make childcare cheaper.’”

The missing element, the expert explained, has been a figure like Mamdani who declares: “Yes, it requires funding, and we’re gonna raise taxes to get it done.”

Raising Taxes on the Wealthy

Mamdani’s plan calls for generating four billion dollars with a two percent increase on those earning above $1m annually. Though it’s a municipal levy, the state government must approve the rise, and the proposal is generally opposed by moderate Democrats.

However there is a feasible route, the expert noted. Increasing taxes on the wealthy is widely accepted and, as with the corporate tax increase, using the proceeds to support favored initiatives makes it easier to promote in Albany.

Rent Freeze

In terms of expense, a pause on rent hikes on rent-controlled apartments is the simplest to implement – it’s nearly free. But, a freeze 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 Buses

Mamdani estimates free buses will require a minimum of $700m, which includes an evasion rate of forty-eight percent. Observers say Mamdani could likely cover the expense by streamlining or cutting other programs in the municipal one hundred sixteen billion dollar annual spending plan.

Publicly Run Grocery Stores

A pilot program for five public food markets that would be established in underserved “food deserts” is projected at $60m and could additionally be paid for by shifting priorities in the one hundred sixteen billion dollar spending plan.

Constructing Affordable Housing Properties

Numerous people to the conservative side of Mamdani have dismissed the proposal to spend approximately one hundred billion dollars building 200,000 affordable units over a decade, largely because it would require substantial borrowing. He said those opposing this point largely miss that the initiative is does not involve to take on one hundred billion dollars immediately – the liability would be accumulated and repaid in phases over several government terms.

He emphasized the plan does not call for no-cost homes, but affordable housing that would generate revenue to pay down debt. Furthermore, the projects could in part be privately financed.

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

Universal Childcare

Implementing childcare access for all would cost between two point five billion dollars and twelve billion dollars by many projections, based on whether it is a city or state program and additional variables. Financing is the big question mark – can the business and high-earner levies be approved in Albany? An expert commented he expected negotiated adjustments, as often happens with large-scale plans.

“The things that Mamdani pledged will likely be scaled back,” he said. “Furthermore the state leader’s expressed resistance to revenue hikes could confront practical limits – she probably can’t get the things she desires on the expenditure front without some flexibility on the tax side.”