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Ambitious promises to transform the city less expensive for residents propelled democratic socialist Zohran Mamdani to his surprising victory on election day. Among them are fare-free transit, childcare for all, and a large-scale increase in affordable homes.

However, turning the urban center more affordable for residents is an costly government task, and numerous economists and politicians to Mamdani’s right say he faces too many hurdles to effectively follow through on his key proposals.

Further complicating matters is the federal administration, which will likely withhold financial support for the city in an attempt to sabotage Mamdani and create budget holes that make it more difficult to fund fresh initiatives.

Additionally, New York City must get state government authorization to modify many revenue streams. One expert pointed to the state assembly blocking the municipality from increasing dog licensing fees in 2014 due to a disagreement between the then mayor and a state representative.

“A striking example of putting it is New York City cannot increase dog licensing fees without state approval, and that held true previously, and it’s true now,” the expert said.

Nonetheless, he and other experts highlight favorable conditions: Mamdani’s proposals are very popular and would address basic problems. Democrats now have significant control in the legislature, and several see economic and political pathways to implementing the plans a success.

In what ways could Mamdani pay for his ambitious agenda? We broke it down by funding method and initiative.

Raising Revenue

His team estimates it could raise approximately ten billion dollars by increasing the business tax, taxes on the affluent, and current government revenues.

Critics say businesses and the high-earners will relocate, but this is contradicted by reliable studies. Moreover, the corporate tax is on earnings made in the region no matter where a company is based, rendering the argument at least partially irrelevant.

Corporate Tax Increase

Mamdani estimates a state tax increase from seven point two five percent and eleven point five percent on business earnings would generate about five billion dollars, a large portion of which would be directed to the city. State leaders would have to authorize the proposal. State lawmakers have in the past backed similar proposals, but the state executive opposes raising taxes.

However, the state leader backs universal childcare, a highly favored initiative because childcare is widely viewed as too expensive, said one policy director. It would be difficult for moderate Democrats to “resist enacting a landmark initiative”, he added. “Nobody says ‘Nothing should be done to make childcare cheaper.’”

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

Increasing Levies on the Affluent

The proposal aims to generating $4bn with a 2% increase on those making above one million dollars each year. Although it’s a city tax, the state legislature must authorize the rise, and the idea is typically opposed by moderate lawmakers.

But there is a feasible route, the expert said. Increasing revenue on the wealthy is broadly popular and, similar to the business tax hike, allocating the proceeds to support popular programs makes it easier to sell in Albany.

Halt on Rent Increases

In terms of cost, a rent freeze on rent-controlled apartments is the simplest to enforce – it’s minimally costly. But, a freeze must be approved by the rent guidelines board, and there may not be sufficient backing on it until Mamdani fills it with his preferred candidates.

Fare-Free and Efficient Buses

The plan estimates free buses will cost at least seven hundred million dollars, which includes an evasion rate of forty-eight percent. Observers suggest Mamdani could probably cover the cost by optimizing or cutting additional services in the municipal one hundred sixteen billion dollar city budget.

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 sixty million dollars and could additionally be paid for by shifting priorities in the one hundred sixteen billion dollar spending plan.

Building Affordable Housing Units

Numerous commentators to the conservative side of Mamdani have dismissed the plan to spend about one hundred billion dollars building 200,000 affordable units over a decade, largely because it would necessitate massive borrowing. He clarified those arguing against this point largely miss that the initiative is not to borrow one hundred billion dollars immediately – the liability would be accumulated and repaid in tranches over multiple administrations.

He emphasized the plan is not for free housing, but affordable housing that would produce income to reduce debt. Furthermore, the developments could in part be funded by private investment.

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

Childcare for All

Implementing childcare access for all would require from $2.5bn and $12bn by many projections, depending on whether it is a city or state program and other factors. Funding is the major uncertainty – will the business and high-earner levies be approved in the state capital? An expert commented he expected some compromise, as often happens with large-scale plans.

“Proposals that Mamdani promised will probably be scaled back,” he remarked. “And the state leader’s stated opposition to tax increases may just face reality – she likely can’t get the things she wants on the expenditure front without some flexibility on the tax side.”