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Ambitious pledges to transform the city more affordable for New Yorkers catapulted democratic socialist the incoming mayor to his unlikely win 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 economists and elected officials to Mamdani’s right say he faces too many hurdles to effectively follow through on his key proposals.

Further complicating matters is the national government, which will likely withhold financial support for the city in an effort to sabotage Mamdani and open up funding gaps that complicate efforts to pay for new priorities.

Additionally, the city must get state legislature authorization to adjust many revenue streams. An analyst pointed to the state assembly blocking the city from raising dog licensing fees in a prior year due to a disagreement between the incumbent at the time and a state representative.

“A striking example of putting it is the City can’t raise dog licensing fees without state legislature approval, and that held true previously, and it’s true now,” he noted.

Nonetheless, he and other experts point to favorable conditions: Mamdani’s ideas are widely supported and would solve fundamental issues. The Democratic party now hold significant control in the legislature, and several identify economic and political pathways to making the plans reality.

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

Generating Revenue

His team projects it could generate about $10bn by raising the corporate tax rate, taxes on the wealthy, and existing fee and tax collections.

Detractors claim companies and the high-earners will move away, but this is contradicted by reliable studies. Additionally, the corporate tax is on profits made in the region regardless of where a business is located, rendering the argument at least partially irrelevant.

Corporate Tax Increase

The mayor-elect estimates a rise in state taxes from 7.25% and 11.5% on business earnings would generate about $5bn, much of which would be funneled to New York City. The legislature and governor would have to approve the plan. Legislative leaders have in the past supported similar proposals, but the state executive opposes raising taxes.

Yet, the governor supports universal childcare, a highly favored initiative because child services is commonly seen as cost-prohibitive, stated an expert. It would be difficult for moderate Democrats to “oppose enacting a landmark initiative”, he added. “Nobody says ‘Nothing should be done to make childcare cheaper.’”

What’s been lacking, he said, has been a figure like Mamdani who declares: “Yeah, it requires funding, and we’re gonna increase revenue to get it done.”

Raising Levies on the Wealthy

Mamdani’s plan calls for raising $4bn with a 2% increase on those earning above one million dollars each year. Though it’s a city tax, the state government must authorize the increase, and the idea is generally opposed by moderate lawmakers.

However there is a feasible route, he noted. Raising revenue on the wealthy is widely accepted and, as with the business tax hike, using the funds to fund favored initiatives helps to sell in the state capital.

Rent Freeze

In terms of cost, a rent freeze on rent-controlled apartments is the easiest to implement – it’s minimally costly. However, a freeze must be authorized by the housing panel, and there might not exist enough support on it before Mamdani appoints members with his own appointments.

Free and Fast Transit

Mamdani estimates free buses 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 streamlining or cutting other programs in the municipal $116bn city budget.

Publicly Run Food Markets

A pilot program for several public food markets that would be built in neglected “areas lacking food access” is estimated at $60m and could additionally be paid for by shifting priorities in the $116bn budget.

Constructing Low-Cost Homes Units

Many people to the conservative side of Mamdani have written off the proposal to spend about $100bn developing 200,000 low-income homes over a decade, largely because it would necessitate substantial borrowing. The expert clarified those opposing this aspect mostly miss that the plan is not to borrow one hundred billion dollars at once – the liability would be accrued and paid down in phases over several government terms.

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

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

Childcare for All

Establishing childcare access for all would require from two point five billion dollars and twelve billion dollars by most estimates, depending on whether it is a city or state program and other factors. Financing is the big question mark – can the corporate and wealth taxes be approved in the state capital? An expert commented he anticipated negotiated adjustments, as is typical with large-scale plans.

“The things that Mamdani promised will probably be scaled back,” the expert remarked. “And the governor’s stated opposition to tax increases could confront practical limits – she probably can’t get the objectives she desires on the expenditure front without compromise on the tax side.”