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Ambitious pledges to make the city more affordable for residents catapulted progressive candidate Zohran Mamdani to his unlikely win on election day. Among them are fare-free transit, universal childcare, and a massive increase in affordable homes.

However, turning the urban center more affordable for residents is an costly government task, and many financial experts and elected officials to Mamdani’s right argue he confronts numerous hurdles to meaningfully deliver on his signature ideas.

Further complicating matters is the federal administration, which will almost certainly pull funding for New York in an effort to undermine Mamdani and create funding gaps that complicate efforts to fund new priorities.

Additionally, the city must secure state government approval to modify many revenue streams. One expert cited the state assembly blocking the municipality from raising dog licensing fees in 2014 due to a disagreement between the incumbent at the time and a state representative.

“A striking way of stating the issue is New York City can’t raise dog licensing fees without state legislature approval, and that held true previously, and it’s true now,” the expert said.

Nonetheless, he and other experts highlight tailwinds: Mamdani’s proposals are widely supported and would address fundamental issues. The Democratic party now hold large majorities in the state government, and several see economic and political pathways to making the proposals a success.

In what ways might Mamdani pay for his ambitious agenda? We broke it down by revenue source and initiative.

Generating Income

His team projects it could raise about $10bn by increasing the corporate tax rate, levies on the affluent, and existing fee and tax collections.

Critics say businesses and the high-earners will relocate, but that is contradicted by credible research. Moreover, the business levy is on profits made in the region no matter where a company is located, rendering the point largely moot.

Corporate Tax Increase

Mamdani estimates a rise in state taxes from seven point two five percent and eleven point five percent on corporate profits would produce about $5bn, much of which would be funneled to New York City. State leaders would have to approve the plan. State lawmakers have in the past supported comparable ideas, but the state executive opposes increasing levies.

However, the governor supports childcare for all, a highly favored initiative because childcare is widely viewed as too expensive, said one policy director. It would be challenging for centrist lawmakers to “oppose enacting a historical program”, he continued. “No one says ‘We shouldn’t do anything to make childcare cheaper.’”

What’s been lacking, he explained, has been a leader like Mamdani who says: “Yeah, it requires funding, and we’re gonna raise taxes to make it happen.”

Raising Levies on the Affluent

Mamdani’s plan aims to raising four billion dollars with a 2% hike on those earning more than one million dollars annually. Though it’s a city tax, the state government must authorize the increase, and the idea is generally resisted by moderate Democrats.

But there is a feasible route, he noted. Increasing taxes on the rich is broadly popular and, similar to the business tax hike, allocating the proceeds to fund favored initiatives makes it easier to sell in Albany.

Halt on Rent Increases

In terms of expense, a rent freeze on rent-controlled apartments is the easiest to implement – it’s nearly free. But, a halt must be approved by the rent guidelines board, and there might not exist enough support on it before Mamdani appoints members with his own appointments.

Free and Fast Transit

The plan projects free buses will require a minimum of $700m, which factors in an fare-dodging percentage of 48%. Observers say Mamdani could probably pay for the expense by optimizing or cutting other programs in the municipal one hundred sixteen billion dollar city budget.

Publicly Run Grocery Stores

A trial initiative for several public food markets that would be established in neglected “food deserts” is estimated at $60m and could additionally be paid for by adjusting focus in the one hundred sixteen billion dollar spending plan.

Building Affordable Housing Units

Many commentators to the conservative side of Mamdani have dismissed the plan to invest about one hundred billion dollars building 200,000 affordable units over a decade, largely because it would necessitate massive debt. He clarified those arguing against this aspect mostly miss that the initiative is does not involve to take on $100bn at once – the debt would be accumulated and paid down in tranches over multiple administrations.

He also stressed the proposal does not call for no-cost homes, but cost-effective residences that would produce income to pay down loans. Furthermore, the projects could partially be privately financed.

“That’s the way the plan adds up,” the expert said.

Childcare for All

Establishing universal childcare would require from $2.5bn and $12bn by many projections, depending on whether it is a municipal or state initiative and other factors. Financing is the major uncertainty – will the business and high-earner levies pass Albany? An expert said he anticipated negotiated adjustments, as often happens with big proposals.

“Proposals that Mamdani pledged will probably be scaled back,” the expert said. “Furthermore the state leader’s expressed resistance to revenue hikes may just face reality – she likely can’t get the things she desires on the expenditure front without some flexibility on the revenue side.”