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Bold promises to make the city more affordable for New Yorkers propelled democratic socialist Zohran Mamdani to his unlikely win on election day. Among them are free buses, childcare for all, and a large-scale increase in low-cost housing.

However, making the city cost-effective for residents is an costly public undertaking, and many financial experts and politicians to Mamdani’s conservative side argue he confronts numerous hurdles to meaningfully deliver on his key proposals.

Further complicating the situation is the federal administration, which will likely withhold financial support 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 government approval to modify several revenue streams. One expert pointed to the state assembly stopping the city from increasing dog licensing fees in a prior year due to a disagreement between the then mayor and a state representative.

“A striking example of stating the issue is New York City can’t raise pet permit charges without state approval, and that held true previously, and it remains the case today,” the expert noted.

Nonetheless, he and other experts highlight tailwinds: Mamdani’s proposals are very popular and would solve fundamental issues. Democrats now hold significant control in the state government, and some identify economic and viable routes to implementing the plans a success.

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

Raising Revenue

His team projects it could raise about ten billion dollars by increasing the corporate tax rate, levies on the wealthy, and existing fee and tax collections.

Critics claim businesses and the wealthy will relocate, but that is contradicted by reliable studies. Additionally, the business levy is on profits made in the region no matter where a business is based, making the argument at least partially moot.

Corporate Tax Increase

The mayor-elect calculates a state tax increase from 7.25% and eleven point five percent on corporate profits would generate about five billion dollars, much of which would be directed to New York City. State leaders would have to authorize the proposal. State lawmakers have previously supported similar proposals, but the governor is against raising taxes.

However, the state leader backs universal childcare, a highly favored proposal because childcare is commonly seen as too expensive, said one policy director. It would be difficult for centrist lawmakers to “resist enacting a landmark initiative”, he added. “Nobody argues ‘We shouldn’t do anything to make childcare cheaper.’”

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

Raising Taxes on the Affluent

The proposal calls for generating four billion dollars with a 2% increase on those making more than one million dollars each year. Though it’s a municipal levy, the state legislature must authorize the increase, and the idea is generally resisted by centrist lawmakers.

However there is a political pathway, he noted. Increasing revenue on the rich is widely accepted and, similar to the corporate tax increase, using the proceeds to fund favored initiatives helps to promote in Albany.

Halt on Rent Increases

In terms of cost, a pause on rent hikes on rent-controlled apartments is the simplest to implement – it’s nearly free. However, a freeze must be authorized by the housing panel, and there might not exist sufficient backing on it until Mamdani fills it with his preferred candidates.

Free and Fast Transit

Mamdani projects fare-free transit will cost at least $700m, which factors in an fare-dodging percentage of forty-eight percent. Observers suggest Mamdani could probably pay for the expense by optimizing or cutting other programs in the city’s one hundred sixteen billion dollar annual spending plan.

City-Owned Food Markets

A pilot program for several city-owned grocery stores that would be built in underserved “food deserts” is estimated at $60m and could additionally be funded by shifting focus in the $116bn spending plan.

Building Low-Cost Homes Properties

Many commentators to the conservative side of Mamdani have dismissed the proposal to invest approximately one hundred billion dollars developing two hundred thousand low-income homes over a decade, mainly because it would require substantial borrowing. He clarified those arguing against this aspect mostly miss that the plan is not to borrow $100bn immediately – the liability would be accumulated and repaid in tranches over several government terms.

He also stressed the proposal does not call for free housing, but cost-effective residences that would generate revenue to pay down debt. Furthermore, the projects could partially be funded by private investment.

“That’s the way the proposal is feasible,” he concluded.

Universal Childcare

Establishing universal childcare would cost between two point five billion dollars and twelve billion dollars by many projections, based on whether it is a city or state program and other factors. Funding is the big question mark – will the business and high-earner levies be approved in Albany? One analyst said he anticipated negotiated adjustments, as often happens with large-scale plans.

“Proposals that Mamdani pledged will likely be scaled back,” he said. “Furthermore the state leader’s stated opposition to revenue hikes could confront practical limits – she likely cannot achieve the objectives she wants on the expenditure front without some flexibility on the tax side.”