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Ambitious promises to make the city more affordable for New Yorkers catapulted progressive candidate Zohran Mamdani to his unlikely victory on Tuesday. Included are fare-free transit, childcare for all, and a large-scale expansion in affordable homes.

However, making the city cost-effective for residents is an costly public undertaking, and many economists and politicians to Mamdani’s right argue he confronts too many hurdles to meaningfully deliver on his signature ideas.

Adding complexity to matters is the federal administration, which will likely pull funding for New York in an attempt to sabotage Mamdani and open up budget holes that make it more difficult to fund fresh initiatives.

Additionally, the city must get state government approval to adjust many income sources. One expert pointed to the state legislature stopping the municipality from raising pet registration costs in a prior year due to a dispute between the then mayor and a lawmaker.

“The dramatic example of putting it is the City can’t raise dog licensing fees without state legislature approval, and that held true previously, and it remains the case today,” he said.

However, analysts point to favorable conditions: Mamdani’s proposals are very popular and would address fundamental issues. Democrats now hold large majorities in the legislature, and some see economic and viable routes to making the proposals reality.

How might Mamdani finance his bold program? We broke it down by funding method and initiative.

Raising Revenue

His team estimates it could generate about ten billion dollars by raising the corporate tax rate, levies on the affluent, and existing fee and tax collections.

Critics claim businesses and the wealthy will relocate, but that is contradicted by reliable studies. Moreover, the business levy is on earnings made in the region regardless of where a business is based, rendering the argument at least partially irrelevant.

Business Levy Hike

The mayor-elect estimates a state tax increase from seven point two five percent and 11.5% on business earnings would generate about $5bn, much of which would be funneled to the city. The legislature and governor would have to approve the proposal. State lawmakers have previously backed comparable ideas, but the governor is against increasing levies.

Yet, the governor backs childcare for all, a highly favored initiative because child services is commonly seen as cost-prohibitive, said an expert. It would be difficult for moderate Democrats to “resist enacting a landmark program”, he continued. “Nobody argues ‘We shouldn’t do anything to reduce childcare costs.’”

What’s been lacking, the expert explained, has been a figure like Mamdani who declares: “Yeah, it requires funding, and we will increase revenue to get it done.”

Increasing Levies on the Affluent

Mamdani’s plan aims to generating four billion dollars with a 2% increase on those earning above $1m each year. Although it’s a municipal levy, the state government must authorize the rise, and the idea is generally resisted by centrist Democrats.

But there is a political pathway, the expert noted. Increasing taxes on the rich is widely accepted and, similar to the business tax hike, using the proceeds to support favored initiatives helps to sell in Albany.

Halt on Rent Increases

In terms of expense, a rent freeze on regulated housing is the easiest to implement – it’s nearly free. But, a freeze must be authorized by the rent guidelines board, and there may not be enough support on it until Mamdani appoints members with his preferred candidates.

Free and Fast Buses

Mamdani estimates free buses will require at least $700m, which factors in an evasion rate of forty-eight percent. Analysts suggest Mamdani could likely cover the cost by optimizing or reducing additional services in the municipal one hundred sixteen billion dollar city budget.

City-Owned Food Markets

A trial initiative for several city-owned grocery stores that would be established in neglected “food deserts” is estimated at sixty million dollars and could also be funded by shifting priorities in the $116bn budget.

Building Affordable Housing Units

Numerous commentators to the conservative side of Mamdani have written off the proposal to invest approximately one hundred billion dollars building 200,000 affordable units over 10 years, largely because it would require massive debt. The expert clarified those opposing this point mostly miss that the initiative is does not involve to take on one hundred billion dollars at once – the liability would be accumulated and paid down in tranches over several government terms.

He also stressed the plan does not call for free housing, but affordable housing that would generate revenue to reduce loans. Moreover, the developments could in part be privately financed.

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

Universal Childcare

Implementing universal childcare would require from $2.5bn and twelve billion dollars by many projections, based on whether it is a city or state program and other factors. Funding is the major uncertainty – will the corporate and wealth taxes be approved in the state capital? One analyst commented he anticipated some compromise, as often happens with large-scale plans.

“The things that Mamdani promised will likely be scaled back,” the expert said. “Furthermore the state leader’s expressed resistance to tax increases could confront practical limits – she likely cannot achieve the objectives she desires on the expenditure front without compromise on the revenue side.”