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Ambitious promises to make the metropolis more affordable for New Yorkers catapulted progressive candidate Zohran Mamdani to his surprising victory on Tuesday. Among them are fare-free transit, childcare for all, and a large-scale expansion in low-cost housing.

However, making the urban center more affordable for residents is an costly government task, and numerous financial experts and elected officials to Mamdani’s conservative side argue he confronts too many hurdles to effectively follow through on his key proposals.

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 open up budget holes that complicate efforts to pay for fresh initiatives.

Additionally, the city must get state government authorization to modify many income sources. One expert pointed to the state legislature blocking the city from raising pet registration costs in 2014 due to a disagreement between the incumbent at the time and a lawmaker.

“A striking way of putting it is the City cannot increase pet permit charges without state approval, and that held true previously, and it’s true now,” he said.

However, he and other experts highlight tailwinds: Mamdani’s proposals are very popular and would solve fundamental issues. Democrats now hold large majorities in the legislature, and some identify financial and viable routes to making the plans reality.

How might Mamdani finance his ambitious agenda? We broke it down by revenue source and proposal.

Generating Revenue

His team projects it could raise about $10bn by increasing the corporate tax rate, taxes on the wealthy, and existing fee and tax collections.

Detractors say companies and the wealthy will relocate, but this is contradicted by credible research. Moreover, the business levy is on earnings made in the state regardless of where a business is based, rendering the point largely moot.

Corporate Tax Hike

The mayor-elect calculates a rise in state taxes from seven point two five percent and 11.5% on business earnings would generate about $5bn, a large portion of which would be directed to the city. State leaders would have to approve the plan. Legislative leaders have previously supported comparable ideas, but the governor opposes raising taxes.

Yet, the governor supports childcare for all, a highly favored initiative because childcare is commonly seen as too expensive, said an expert. It would be difficult for moderate Democrats to “resist passing a landmark initiative”, he added. “Nobody says ‘We shouldn’t do anything to reduce childcare costs.’”

What’s been lacking, the expert explained, 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 Affluent

The proposal calls for generating $4bn with a 2% increase on those making above one million dollars annually. Although it’s a municipal levy, the state legislature must authorize the increase, and the proposal is generally opposed by centrist Democrats.

But there is a political pathway, he noted. Increasing revenue on the wealthy is widely accepted and, similar to the business tax hike, using the proceeds to support favored initiatives makes it easier to sell in Albany.

Rent Freeze

In terms of expense, a pause on rent hikes on rent-controlled apartments is the easiest to enforce – it’s minimally costly. However, a freeze must be approved by the rent guidelines board, and there might not exist sufficient backing on it until Mamdani appoints members with his own appointments.

Free and Fast Transit

Mamdani estimates free buses will cost at least seven hundred million dollars, which includes an evasion rate of 48%. Observers suggest Mamdani could likely cover the expense by optimizing or cutting additional services in the city’s $116bn annual spending plan.

Publicly Run Grocery Stores

A trial initiative for five city-owned grocery stores that would be built in neglected “areas lacking food access” is estimated at sixty million dollars and could additionally be paid for by shifting focus in the $116bn spending plan.

Constructing Low-Cost Homes Units

Numerous people to the right of Mamdani have written off the proposal to invest about $100bn developing two hundred thousand low-income homes over a decade, largely because it would necessitate massive borrowing. He said those opposing this aspect largely miss that the plan is does not involve to take on $100bn at once – the debt would be accrued and repaid in phases over multiple administrations.

He also stressed the plan is not for no-cost homes, but affordable housing that would generate revenue to reduce debt. Moreover, the projects could partially be funded by private investment.

“This is how the proposal is feasible,” he concluded.

Universal Childcare

Implementing universal childcare would require between two point five billion dollars and $12bn by many projections, depending on whether it is a municipal or state initiative and other factors. Financing is the major uncertainty – can the corporate and wealth taxes pass the state capital? One analyst said he anticipated negotiated adjustments, as is typical with big proposals.

“The things that Mamdani promised will probably be scaled back,” the expert remarked. “And the state leader’s stated resistance to tax increases could face reality – she probably cannot achieve the things she wants on the spending side without compromise on the revenue side.”