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Ambitious pledges to make the city less expensive for residents catapulted democratic socialist Zohran Mamdani to his unlikely victory on election day. Included are fare-free transit, childcare for all, and a massive increase in low-cost housing.

However, making the city more affordable for residents is an expensive government task, and many financial experts and elected officials to Mamdani’s right say he confronts too many hurdles to meaningfully deliver on his key proposals.

Further complicating the situation is the federal administration, which will likely pull funding for New York in an effort to sabotage Mamdani and open up funding gaps that complicate efforts to fund new priorities.

Additionally, the city must get state legislature approval to modify several revenue streams. One expert cited the state legislature blocking the city from raising pet registration costs in 2014 due to a dispute between the incumbent at the time and a lawmaker.

“A striking example of stating the issue is New York City can’t raise dog licensing fees without state legislature approval, and it was true then, and it remains the case today,” he said.

However, he and other experts point to tailwinds: Mamdani’s ideas are very popular and would address basic problems. The Democratic party now have significant control in the state government, and several see economic and political pathways to implementing the plans a success.

How might Mamdani finance his ambitious program? Here’s a detailed look by revenue source and initiative.

Generating Income

The Mamdani campaign projects it could raise about $10bn by raising the business tax, levies on the affluent, and current government revenues.

Detractors claim businesses and the high-earners will relocate, but this is disputed by reliable studies. Additionally, the corporate tax is on earnings made in the region regardless of where a company is based, making the argument largely moot.

Business Levy Increase

The mayor-elect estimates a rise in state taxes from 7.25% and 11.5% on corporate profits would produce about $5bn, a large portion of which would be funneled to New York City. State leaders would have to authorize the proposal. Legislative leaders have previously backed comparable ideas, but the governor opposes increasing levies.

However, the governor supports universal childcare, a highly favored initiative because child services is commonly seen as too expensive, said one policy director. It would be challenging for moderate Democrats to “oppose passing a landmark initiative”, he continued. “No one argues ‘We shouldn’t do anything to make childcare cheaper.’”

The missing element, he said, has been a figure like Mamdani who declares: “Yeah, it costs money, and we’re gonna increase revenue to get it done.”

Raising Levies on the Wealthy

Mamdani’s plan calls for generating four billion dollars with a 2% hike on those earning more than one million dollars each year. Though it’s a city tax, the state legislature must approve the rise, and the proposal is typically opposed by centrist lawmakers.

But there is a political pathway, he noted. Raising taxes on the rich is widely accepted and, as with the corporate tax increase, using the funds to fund favored initiatives helps to promote in Albany.

Rent Freeze

Regarding expense, a pause on rent hikes on rent-controlled apartments is the simplest to enforce – it’s nearly free. But, a freeze must be authorized by the rent guidelines board, and there may not be sufficient backing on it before Mamdani appoints members with his preferred candidates.

Fare-Free and Efficient Buses

Mamdani projects free buses will require at least $700m, which includes an fare-dodging percentage of forty-eight percent. Observers suggest Mamdani could likely pay for the expense by optimizing or reducing additional services in the municipal one hundred sixteen billion dollar annual spending plan.

City-Owned Grocery Stores

A trial initiative for five public food markets that would be established in neglected “areas lacking food access” is estimated at $60m and could additionally be paid for by adjusting focus in the one hundred sixteen billion dollar spending plan.

Building Low-Cost Homes Properties

Many people to the conservative side of Mamdani have written off the plan to invest about $100bn developing two hundred thousand affordable units over a decade, largely because it would necessitate substantial debt. The expert clarified those opposing this point largely overlook that the plan is not to take on one hundred billion dollars at once – the liability would be accumulated and paid down in phases over multiple administrations.

He also stressed the plan is not for no-cost homes, but cost-effective residences that would produce income to reduce loans. Moreover, the developments could in part be privately financed.

“This is how the plan is feasible,” the expert concluded.

Universal Childcare

Implementing universal childcare would require from $2.5bn and twelve billion dollars by many projections, based on whether it is a city or state program and other factors. Financing is the big question mark – will the corporate and wealth taxes be approved in the state capital? An expert commented he anticipated negotiated adjustments, as often happens with large-scale plans.

“Proposals that Mamdani promised will likely be scaled back,” the expert remarked. “Furthermore the governor’s expressed resistance to tax increases may just face reality – she probably cannot achieve the things she desires on the expenditure front without some flexibility on the revenue side.”