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Bold pledges to transform the metropolis more affordable for New Yorkers catapulted democratic socialist Zohran Mamdani to his surprising win on election day. Included are fare-free transit, universal childcare, and a large-scale increase in low-cost housing.

However, making the city more affordable for residents is an expensive government task, and numerous economists and politicians to Mamdani’s right say he faces too many obstacles to effectively follow through on his key proposals.

Adding complexity to matters is the national government, 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 fresh initiatives.

Additionally, New York City must secure state legislature approval to adjust many revenue streams. An analyst pointed to the state legislature blocking the municipality from increasing dog licensing fees in a prior year due to a disagreement between the incumbent at the time and a lawmaker.

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

Nonetheless, he and other experts point to tailwinds: Mamdani’s ideas are very popular and would solve fundamental issues. The Democratic party now hold large majorities in the state government, and several see economic and viable routes to making the proposals reality.

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

Raising Revenue

The Mamdani campaign projects it could raise about $10bn by increasing the corporate tax rate, taxes on the wealthy, and current government revenues.

Critics claim businesses and the wealthy will move away, but this is disputed by credible research. Moreover, the corporate tax is on earnings made in the region regardless of where a business is based, making the argument largely moot.

Corporate Tax Hike

The mayor-elect calculates a state tax increase between 7.25% and 11.5% on business earnings would generate about $5bn, much of which would be funneled to the city. The legislature and governor would have to approve the proposal. Legislative leaders have in the past supported comparable ideas, but the governor is against raising taxes.

However, the state leader supports universal childcare, a very popular proposal because child services is widely viewed as cost-prohibitive, stated an expert. It would be challenging for centrist lawmakers to “resist passing a landmark initiative”, he continued. “No one says ‘We shouldn’t do anything to make childcare cheaper.’”

The missing element, he said, has been a figure like Mamdani who says: “Yes, it requires funding, and we’re gonna increase revenue to get it done.”

Increasing Levies on the Wealthy

The proposal aims to generating four billion dollars with a two percent increase on those earning above one million dollars each year. Although it’s a city tax, the state government must authorize the rise, and the proposal is generally resisted by moderate Democrats.

But there is a political pathway, the expert noted. Raising taxes on the rich is broadly popular and, as with the corporate tax increase, allocating the proceeds to support favored initiatives helps to sell in Albany.

Halt on Rent Increases

Regarding cost, a pause on rent hikes on rent-controlled apartments is the simplest 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.

Free and Fast Buses

The plan projects free buses 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 streamlining or reducing additional services in the city’s $116bn annual spending plan.

Publicly Run Food Markets

A trial initiative for five city-owned grocery stores that would be established in neglected “areas lacking food access” is projected at $60m and could additionally be paid for by shifting focus in the one hundred sixteen billion dollar spending plan.

Building Affordable Housing Units

Many commentators to the conservative side of Mamdani have written off the plan to spend about $100bn developing 200,000 low-income homes over a decade, mainly because it would necessitate massive borrowing. He said those arguing against this aspect largely overlook that the plan is not to borrow $100bn immediately – the liability would be accrued and paid down in tranches over multiple administrations.

He also stressed the plan does not call for free housing, but cost-effective residences that would generate revenue to reduce debt. Furthermore, the developments could in part be funded by private investment.

“This is how the plan adds up,” the expert concluded.

Childcare for All

Implementing universal childcare would cost between two point five billion dollars and $12bn by many projections, depending on whether it is a city or state program and other factors. Financing is the major uncertainty – can the business and high-earner levies pass Albany? An expert commented he expected negotiated adjustments, as often happens with big proposals.

“Proposals that Mamdani pledged will likely get a haircut,” the expert said. “And the governor’s expressed resistance to tax increases could face reality – she probably cannot achieve the things she wants on the expenditure front without some flexibility on the tax side.”