Navigating Albany: Mamdani’s Affordability Agenda Faces State Budget Battles

Governor Hochul and state legislature hold keys to mayor-elect’s ambitious policy proposals

The $10 Billion Question

Zohran Mamdani’s victory was built on bold promises: rent freezes, free buses, universal childcare, and city-run grocery stores. Now comes the hard part–actually delivering. Most of his signature proposals require approval and funding from Albany, where Governor Kathy Hochul and the state legislature control a roughly $250 billion annual budget.

Mamdani is calling for $10 billion in new taxes on the super-rich and large profitable corporations to fund his initiatives. Whether Hochul and legislators–all facing reelection in 2026–will support such measures remains uncertain.

The Rent Freeze Pathway

Of all Mamdani’s proposals, the rent freeze may be the most achievable. New York City mayors appoint members to the Rent Guidelines Board, which sets annual rent increases for the city’s approximately one million rent-stabilized apartments.

According to the New York State Homes and Community Renewal, rent-stabilized apartments serve as crucial affordable housing stock in a city where median rents have skyrocketed. Outgoing mayor Eric Adams could complicate matters with last-minute appointments, but Mamdani will eventually gain control of the board.

Housing advocates from organizations like the Metropolitan Council on Housing have long argued that rent freezes are essential to prevent displacement. However, landlord groups and real estate interests strongly oppose such measures, arguing they discourage housing development.

Universal Childcare: A Potential Compromise

Governor Hochul has indicated willingness to negotiate on childcare, calling it a priority. This could represent a major win for both leaders. New York families face some of the nation’s highest childcare costs–averaging over $16,000 annually according to Economic Policy Institute data.

The First Five Years Fund estimates that universal childcare would require significant state investment but could generate economic returns through increased workforce participation. Several states have expanded childcare access, providing models for New York.

Hochul’s Political Calculations

The governor faces her own challenging political landscape. She must win a Democratic primary against her lieutenant governor before facing Republican Elise Stefanik in the general election. Hochul needs strong New York City turnout, giving Mamdani unexpected leverage.

Political analyst John Tarleton notes that Hochul “by September, has kind of hitched her wagon to Zohran” after seeing the movement behind him. However, she’s also “been very protective of her super-rich constituents who donate very generously to her political campaigns.”

The Transportation Challenge

Mamdani’s proposal for “fast and free buses” faces both logistical and political hurdles. The Metropolitan Transportation Authority, which operates city buses, is a state-controlled entity already facing billions in budget deficits.

Transportation experts at the Tri-State Transportation Campaign note that fare-free transit has been implemented in some smaller cities but never in a system as large as New York’s. Questions remain about funding sources and service quality.

Grassroots Pressure Campaign

NYC-DSA and allied community groups are preparing “an enormous public mobilization campaign” for early 2026 as the state budget moves through the legislature. The goal: pressure legislators facing reelection to support Mamdani’s agenda.

The state budget must be finalized by April 1st. This creates a tight timeline for negotiations. Organizations like New York Public Interest Research Group have documented how public pressure campaigns can influence budget outcomes.

The Tax Increase Battle

Mamdani’s funding plan depends on taxing New York’s billionaires and multimillionaires. The state has more billionaires than anywhere else in America. While Mamdani argues “they never leave” despite threatening to, the threat of wealth flight remains potent in Albany politics.

Research from the Institute on Taxation and Economic Policy shows that progressive taxation can fund public services without triggering significant out-migration. However, organizations like the Business Council of New York State vigorously oppose tax increases.

Constitutional and Statutory Limits

Some of Mamdani’s proposals face legal obstacles. State law limits mayoral authority over various policy areas. Changes to rent regulations, transit fares, and tax policy all require state legislative action.

According to the New York Department of State, the relationship between city and state government is defined by the state constitution and centuries of precedent. The city cannot act independently in many policy areas.

The Political Dance Ahead

Hochul has publicly stated “you can’t pressure me,” which budget experts interpret as her “opening bid.” The coming months will test whether grassroots mobilization can overcome entrenched opposition from wealthy donors and business interests.

Lieutenant Governor Antonio Delgado, who is challenging Hochul in the primary, could pull the governor leftward on key issues. Meanwhile, every state legislator faces voters in November 2026, creating political calculations around supporting or opposing Mamdani’s agenda.

As the April 1st budget deadline approaches, New York will witness a fundamental test: can a mayor elected on a transformative platform actually transform the city’s policies, or will Albany’s institutional resistance prove insurmountable? The answer will shape progressive politics nationwide.