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Ambitious pledges to transform the city less expensive for New Yorkers catapulted progressive candidate Zohran Mamdani to his unlikely victory on election day. Among them are fare-free transit, universal childcare, and a large-scale expansion in low-cost housing.

However, making the urban center more affordable for residents is an expensive government task, and numerous economists and elected officials to Mamdani’s right argue he faces numerous hurdles to meaningfully deliver on his key proposals.

Further complicating the situation is the federal administration, which will almost certainly withhold financial support for New York in an attempt to undermine Mamdani and open up funding gaps that make it more difficult to fund new priorities.

Additionally, New York City must secure state legislature approval to modify several revenue streams. An analyst pointed to the state assembly stopping the municipality from increasing dog licensing fees in 2014 due to a disagreement between the then mayor and a lawmaker.

“The dramatic example of stating the issue is the City can’t raise dog licensing fees without state legislature approval, and it was true then, and it remains the case today,” he said.

However, analysts point to tailwinds: Mamdani’s proposals are widely supported and would solve basic problems. Democrats now have significant control in the legislature, and several identify economic and political pathways to implementing the proposals a success.

In what ways could Mamdani finance his bold program? We broke it down by revenue source and initiative.

Generating Income

The Mamdani campaign projects it could raise about $10bn by increasing the corporate tax rate, taxes on the wealthy, and existing fee and tax collections.

Critics claim companies and the high-earners will move away, but that is contradicted by reliable studies. Moreover, the corporate tax is on earnings made in the region no matter where a company is located, rendering the point largely moot.

Business Levy Increase

The mayor-elect estimates a state tax increase from 7.25% and eleven point five percent on corporate profits would produce around $5bn, much of which would be funneled to the city. State leaders would have to approve the proposal. Legislative leaders have in the past backed similar proposals, but the governor opposes increasing levies.

Yet, the state leader supports childcare for all, a very popular proposal because childcare is commonly seen as cost-prohibitive, said one policy director. It would be difficult for centrist lawmakers to “oppose enacting a landmark initiative”, he continued. “No one says ‘Nothing should be done to make childcare cheaper.’”

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

Raising Taxes on the Wealthy

Mamdani’s plan aims to generating four billion dollars with a two percent hike on those making above $1m annually. Though it’s a municipal levy, the state government must authorize the rise, and the proposal is generally opposed by centrist lawmakers.

But there is a political pathway, he said. Increasing taxes on the wealthy is widely accepted and, as with the corporate tax increase, allocating the funds to support favored initiatives helps to sell in Albany.

Rent Freeze

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

Fare-Free and Efficient Transit

The plan projects fare-free transit will require at least $700m, which includes an evasion rate of 48%. Analysts suggest Mamdani could probably pay for the expense by optimizing or reducing other programs in the municipal $116bn city budget.

City-Owned Food Markets

A trial initiative for five city-owned grocery stores that would be established in underserved “areas lacking food access” is estimated at sixty million dollars and could additionally be funded by shifting priorities in the one hundred sixteen billion dollar budget.

Constructing Low-Cost Homes Units

Numerous people to the conservative side of Mamdani have written off the proposal to invest approximately $100bn developing two hundred thousand low-income homes over a decade, largely because it would require massive borrowing. The expert clarified those opposing this aspect mostly overlook that the initiative is not to take on one hundred billion dollars immediately – the debt would be accrued and repaid in phases over several government terms.

He emphasized the proposal is not for no-cost homes, but affordable housing that would produce income to reduce loans. Moreover, the projects could in part be privately financed.

“That’s the way the plan is feasible,” he said.

Universal Childcare

Establishing childcare access for all would require from two point five billion dollars and $12bn by most estimates, depending on whether it is a municipal or state initiative and other factors. Funding is the major uncertainty – can the corporate and wealth taxes pass the state capital? An expert commented he anticipated some compromise, as is typical with big proposals.

“The things that Mamdani pledged will likely be scaled back,” the expert remarked. “And the governor’s expressed resistance to revenue hikes may just face reality – she likely cannot achieve the objectives she wants on the spending side without some flexibility on the revenue side.”