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Bold promises to make the city more affordable for New Yorkers catapulted progressive candidate Zohran Mamdani to his unlikely victory on election day. Among them are fare-free transit, childcare for all, and a massive increase in low-cost housing.

However, making the urban center cost-effective for residents is an costly government task, and numerous financial experts and politicians to Mamdani’s right argue he faces too many hurdles to effectively follow through on his signature ideas.

Further complicating matters is the national government, which will almost certainly pull funding for the city in an attempt to undermine Mamdani and create budget holes that complicate efforts to pay for new priorities.

Additionally, the city must get state legislature authorization to modify several revenue streams. One expert pointed to the state assembly blocking the municipality from raising pet registration costs in a prior year due to a dispute between the then mayor and a lawmaker.

“A striking example of putting it is the City cannot increase dog licensing fees without state approval, and that held true previously, and it’s true now,” he said.

Nonetheless, analysts point to tailwinds: Mamdani’s proposals are widely supported and would address fundamental issues. Democrats now hold significant control in the legislature, and several identify financial and political pathways to implementing the plans reality.

In what ways could Mamdani pay for his ambitious program? We broke it down by revenue source and proposal.

Raising Income

The Mamdani campaign projects it could raise approximately $10bn by raising the corporate tax rate, taxes on the affluent, and current government revenues.

Detractors say businesses and the high-earners will move away, but that is contradicted by credible research. Moreover, the corporate tax is on profits made in the state regardless of where a business is located, rendering the argument at least partially moot.

Business Levy Hike

The mayor-elect calculates a rise in state taxes between seven point two five percent and eleven point five percent on corporate profits would generate around five billion dollars, much of which would be funneled to New York City. The legislature and governor would have to authorize the plan. Legislative leaders have previously supported comparable ideas, but the governor opposes raising taxes.

However, the governor backs childcare for all, a highly favored proposal because child services is widely viewed as cost-prohibitive, said one policy director. It would be challenging for centrist lawmakers to “resist passing a landmark initiative”, he added. “Nobody says ‘Nothing should be done to reduce childcare costs.’”

The missing element, the expert explained, has been a leader like Mamdani who says: “Yeah, it costs money, and we’re gonna raise taxes to get it done.”

Raising Taxes on the Wealthy

The proposal aims to raising $4bn with a two percent hike on those earning above $1m each year. Although it’s a city tax, the state government must authorize the increase, and the idea is typically opposed by moderate Democrats.

But there is a feasible route, the expert said. Increasing taxes on the rich is widely accepted and, similar to the business tax hike, allocating the funds to fund favored initiatives makes it easier to sell in the state capital.

Halt on Rent Increases

Regarding expense, a rent freeze on rent-controlled apartments is the simplest to enforce – it’s minimally costly. But, a halt 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.

Fare-Free and Efficient Buses

The plan estimates fare-free transit will cost a minimum of $700m, which factors in an fare-dodging percentage of forty-eight percent. Analysts say Mamdani could likely pay for the expense by streamlining or cutting additional services in the city’s one hundred sixteen billion dollar annual spending plan.

Publicly Run Food Markets

A trial initiative for five city-owned grocery stores that would be built in underserved “food deserts” is estimated at sixty million dollars and could additionally be funded by adjusting focus in the one hundred sixteen billion dollar spending plan.

Constructing Affordable Housing Units

Numerous commentators to the conservative side of Mamdani have written off the plan to spend approximately one hundred billion dollars developing 200,000 low-income homes over a decade, largely because it would require massive borrowing. The expert said those arguing against this point mostly overlook that the plan is not to borrow $100bn immediately – the liability would be accumulated and paid down in tranches over several government terms.

He emphasized the proposal does not call for free housing, but cost-effective residences that would generate revenue to reduce debt. Furthermore, the projects could in part be privately financed.

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

Universal Childcare

Establishing universal childcare would require between two point five billion dollars and $12bn by most estimates, based on whether it is a city or state program and other factors. Financing is the big question mark – will the business and high-earner levies be approved in the state capital? One analyst said he anticipated negotiated adjustments, as is typical with big proposals.

“Proposals that Mamdani pledged will likely be scaled back,” he said. “Furthermore the state leader’s stated opposition to tax increases could face reality – she probably can’t get the things she wants on the expenditure front without compromise on the revenue side.”