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Ambitious pledges to make the city more affordable for residents propelled progressive candidate Zohran Mamdani to his unlikely victory on election day. Among them are fare-free transit, childcare for all, and a large-scale expansion in low-cost housing.

However, making the urban center cost-effective for residents is an costly public undertaking, and numerous economists and elected officials to Mamdani’s conservative side say he faces too many hurdles to meaningfully deliver on his signature ideas.

Adding complexity to the situation is the national government, which will likely withhold financial support for the city in an attempt to sabotage Mamdani and create funding gaps that complicate efforts to fund fresh initiatives.

Additionally, the city must secure state legislature authorization to adjust many revenue streams. An analyst cited the state assembly blocking the municipality from raising dog licensing fees in a prior year due to a disagreement between the incumbent at the time and a state representative.

“A striking way of putting it is New York City cannot increase pet permit charges without state approval, and that held true previously, and it remains the case today,” the expert noted.

Nonetheless, analysts point to tailwinds: Mamdani’s ideas are widely supported and would address basic problems. Democrats now have significant control in the legislature, and some identify financial and viable routes to implementing the proposals a success.

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

Raising Revenue

The Mamdani campaign projects it could generate about $10bn by increasing the corporate tax rate, levies on the affluent, and current government revenues.

Detractors claim businesses and the wealthy will relocate, but this is contradicted by credible research. Additionally, the business levy is on earnings made in the state no matter where a business is located, rendering the argument at least partially irrelevant.

Corporate Tax Increase

Mamdani calculates a rise in state taxes between 7.25% and eleven point five percent on business earnings would produce around $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 governor is against increasing levies.

Yet, the governor backs childcare for all, a very popular proposal because childcare is commonly seen as too expensive, stated an expert. It would be difficult for moderate Democrats to “resist enacting a historical initiative”, he continued. “No one argues ‘Nothing should be done to make childcare cheaper.’”

The missing element, he explained, has been a leader like Mamdani who says: “Yes, it requires funding, and we’re gonna increase revenue to make it happen.”

Raising Levies on the Affluent

The proposal calls for generating $4bn with a 2% hike on those making more than $1m each year. Although it’s a city tax, the state legislature must approve the increase, and the proposal is typically opposed by moderate lawmakers.

But there is a political pathway, the expert said. Raising revenue on the wealthy is widely accepted and, similar to the business tax hike, allocating the proceeds to support favored initiatives makes it easier to sell in Albany.

Rent Freeze

Regarding cost, a rent freeze on regulated housing is the simplest to enforce – it’s nearly free. However, a halt must be authorized by the housing panel, and there might not exist sufficient backing on it until Mamdani fills it with his preferred candidates.

Fare-Free and Efficient Buses

Mamdani projects fare-free transit will cost a minimum of seven hundred million dollars, which includes an evasion rate of 48%. Analysts suggest Mamdani could probably cover the cost by optimizing or reducing additional services in the city’s $116bn city budget.

City-Owned Grocery Stores

A trial initiative for several public food markets that would be established in neglected “food deserts” is estimated at $60m and could also be paid for by shifting priorities in the $116bn spending plan.

Building Low-Cost Homes Units

Many commentators to the right of Mamdani have dismissed the plan to invest about $100bn developing 200,000 low-income homes over 10 years, largely because it would necessitate substantial borrowing. He clarified those arguing against this point mostly miss that the initiative is not to borrow one hundred billion dollars at once – the debt would be accumulated and repaid in phases over several government terms.

He emphasized the plan is not for free housing, but affordable housing that would generate revenue to pay down debt. Moreover, the projects could in part be funded by private investment.

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

Universal Childcare

Establishing universal childcare would require between two point five billion dollars and twelve billion dollars by most estimates, based on whether it is a city or state program and additional variables. Financing is the big question mark – can the business and high-earner levies be approved in the state capital? One analyst said he expected some compromise, as is typical with large-scale plans.

“The things that Mamdani promised will probably be scaled back,” the expert said. “Furthermore the governor’s stated resistance to revenue hikes could confront practical limits – she likely can’t get the things she desires on the spending side without some flexibility on the revenue side.”