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Bold promises to make the city more affordable for residents propelled democratic socialist Zohran Mamdani to his surprising win on Tuesday. Included are fare-free transit, universal childcare, and a massive increase in affordable homes.

However, making the city cost-effective for residents is an expensive government task, and numerous financial experts and politicians to Mamdani’s right say he confronts too many obstacles to meaningfully deliver on his key proposals.

Adding complexity to the situation is the federal administration, which will almost certainly pull funding for the city in an effort to sabotage Mamdani and create funding gaps that complicate efforts to pay for new priorities.

Additionally, the city must get state government approval to modify many revenue streams. An analyst pointed to the state assembly blocking the city from increasing pet registration costs in 2014 due to a dispute between the incumbent at the time and a state representative.

“A striking example of stating the issue is the City cannot increase dog licensing fees without state approval, and it was true then, and it’s true now,” he said.

Nonetheless, analysts point to favorable conditions: Mamdani’s ideas are widely supported and would address fundamental issues. The Democratic party now hold large majorities in the legislature, and several identify financial and political pathways to making the proposals a success.

How could Mamdani pay for his ambitious program? Here’s a detailed look by funding method and initiative.

Raising Revenue

His team estimates it could raise approximately $10bn by raising the corporate tax rate, levies on the wealthy, and current government revenues.

Detractors say companies and the high-earners will relocate, but that is disputed by credible research. Additionally, the corporate tax is on profits made in the region no matter where a business is based, making the argument at least partially moot.

Corporate Tax Increase

Mamdani calculates a rise in state taxes from 7.25% and eleven point five percent on business earnings would generate around five billion dollars, much of which would be directed to New York City. The legislature and governor would have to authorize the plan. State lawmakers have in the past supported comparable ideas, but the governor opposes increasing levies.

Yet, the state leader backs universal childcare, a highly favored initiative because childcare is commonly seen as cost-prohibitive, said one policy director. It would be challenging for moderate Democrats to “oppose enacting a landmark program”, he continued. “Nobody argues ‘We shouldn’t do anything to make childcare cheaper.’”

The missing element, the expert explained, has been a leader like Mamdani who declares: “Yes, it costs money, and we’re gonna increase revenue to get it done.”

Raising Taxes on the Affluent

Mamdani’s plan calls for raising $4bn with a 2% hike on those earning more than one million dollars each year. Though it’s a municipal levy, the state government must authorize the rise, and the proposal is typically resisted by moderate Democrats.

However there is a feasible route, he noted. Increasing revenue on the wealthy is widely accepted and, similar to the business tax hike, allocating the proceeds to fund popular programs makes it easier to promote in Albany.

Rent Freeze

In terms of cost, a pause on rent hikes on regulated housing is the simplest to enforce – it’s minimally costly. However, a freeze must be approved by the housing panel, and there might not exist enough support on it until Mamdani fills it with his own appointments.

Free and Fast Buses

Mamdani projects free buses will cost at least seven hundred million dollars, which factors in an fare-dodging percentage of 48%. Observers suggest Mamdani could likely cover the cost by optimizing or cutting additional services in the municipal one hundred sixteen billion dollar city budget.

Publicly Run Grocery Stores

A pilot program for five public food markets that would be built in underserved “areas lacking food access” is estimated at $60m and could additionally be paid for by shifting focus in the one hundred sixteen billion dollar budget.

Building Low-Cost Homes Units

Numerous commentators to the right of Mamdani have dismissed the plan to spend approximately $100bn building two hundred thousand low-income homes over 10 years, mainly because it would necessitate massive debt. He said those opposing this aspect mostly miss that the plan is not to take on $100bn immediately – the liability would be accrued and repaid in tranches over several government terms.

He emphasized the plan is not for no-cost homes, but cost-effective residences that would generate revenue to pay down loans. Furthermore, the developments could in part be funded by private investment.

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

Universal Childcare

Implementing universal childcare would require from $2.5bn and $12bn 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 the state capital? An expert said he expected negotiated adjustments, as often happens with big proposals.

“Proposals that Mamdani promised will probably get a haircut,” the expert said. “Furthermore the governor’s expressed resistance to tax increases may just confront practical limits – she probably can’t get the objectives she wants on the spending side without some flexibility on the tax side.”