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Ambitious promises to make the city more affordable for New Yorkers catapulted progressive candidate Zohran Mamdani to his surprising win on election day. Included are fare-free transit, childcare for all, and a massive expansion in low-cost housing.

However, making the city cost-effective for residents is an expensive public undertaking, and numerous economists and politicians to Mamdani’s conservative side argue he faces numerous obstacles to effectively follow through on his key proposals.

Further complicating the situation is the national government, which will likely pull funding for the city in an attempt to sabotage Mamdani and create budget holes that make it more difficult to fund new priorities.

Additionally, the city must get state government approval to adjust several income sources. One expert pointed to the state assembly stopping the municipality from increasing pet registration costs in a prior year 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 cannot increase dog licensing fees without state legislature approval, and that held true previously, and it’s true now,” he noted.

Nonetheless, he and other experts highlight tailwinds: Mamdani’s ideas are widely supported and would solve fundamental issues. The Democratic party now have significant control in the state government, and several see financial and political pathways to making the proposals a success.

In what ways could Mamdani finance his bold program? Here’s a detailed look by revenue source and initiative.

Raising Revenue

The Mamdani campaign estimates it could generate approximately $10bn by increasing the business tax, levies on the affluent, and current government revenues.

Detractors claim companies and the wealthy will move away, but that is contradicted by reliable studies. Moreover, the business levy is on profits made in the region no matter where a company is located, making the argument largely irrelevant.

Corporate Tax Increase

The mayor-elect calculates a rise in state taxes from 7.25% and eleven point five percent on business earnings would generate about five billion dollars, a large portion of which would be directed to New York City. The legislature and governor would have to approve the proposal. State lawmakers have in the past supported comparable ideas, but the state executive is against raising taxes.

However, the governor supports universal childcare, a highly favored initiative because child services is commonly seen as cost-prohibitive, stated an expert. It would be challenging for centrist lawmakers to “oppose passing a historical initiative”, he continued. “No one says ‘Nothing should be done to reduce childcare costs.’”

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

Raising Levies on the Wealthy

The proposal calls for raising $4bn with a two percent hike on those earning above one million dollars annually. Although it’s a municipal levy, the state legislature must approve the increase, and the idea is generally resisted by moderate Democrats.

However there is a political pathway, he said. Increasing taxes on the rich is widely accepted and, as with the business tax hike, using the proceeds to support popular programs makes it easier to sell in the state capital.

Halt on Rent Increases

Regarding expense, a pause on rent hikes on rent-controlled apartments is the easiest to enforce – it’s nearly free. However, a freeze must be approved by the rent guidelines board, and there might not exist enough support on it until Mamdani fills it with his preferred candidates.

Fare-Free and Efficient Buses

The plan projects free buses will cost a minimum of seven hundred million dollars, which includes an fare-dodging percentage of 48%. Observers suggest Mamdani could likely pay for the cost by optimizing or reducing other programs in the city’s $116bn annual spending plan.

Publicly Run Food Markets

A trial initiative for several public food markets that would be built in underserved “areas lacking food access” is projected at $60m and could also be funded by adjusting priorities in the one hundred sixteen billion dollar budget.

Building Affordable Housing Properties

Numerous people to the right of Mamdani have written off the plan to invest about $100bn building two hundred thousand affordable units over 10 years, largely because it would require substantial debt. He clarified those opposing this aspect mostly overlook that the initiative is does not involve to take on $100bn immediately – the liability would be accumulated and repaid in tranches over multiple administrations.

He also stressed the plan does not call for free housing, but cost-effective residences that would produce income to reduce loans. Moreover, the projects could partially be funded by private investment.

“That’s the way the proposal adds up,” the expert concluded.

Universal Childcare

Establishing universal childcare would require between two point five billion dollars and $12bn by most estimates, depending on whether it is a city or state program and additional variables. Funding is the major uncertainty – can the corporate and wealth taxes pass the state capital? An expert commented he expected some compromise, as is typical with large-scale plans.

“Proposals that Mamdani pledged will likely be scaled back,” the expert remarked. “Furthermore the governor’s expressed resistance to tax increases may just confront practical limits – she probably cannot achieve the things she wants on the spending side without compromise on the revenue side.”