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Ambitious promises to transform the city more affordable for residents catapulted democratic socialist Zohran Mamdani to his surprising win 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 cost-effective for residents is an costly public undertaking, and many economists and politicians to Mamdani’s conservative side argue he faces too many hurdles to effectively follow through on his signature ideas.

Adding complexity to the situation is the federal administration, which will likely pull funding for the city in an attempt to sabotage Mamdani and create budget holes that complicate efforts to pay for new priorities.

Additionally, the city must get state government authorization to adjust many revenue streams. An analyst cited the state legislature stopping the city from increasing dog licensing fees in 2014 due to a dispute between the incumbent at the time and a lawmaker.

“A striking way 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 noted.

However, he and other experts point to favorable conditions: Mamdani’s proposals are very popular and would address basic problems. Democrats now hold large majorities in the legislature, and some see financial and political pathways to implementing the proposals reality.

In what ways might Mamdani pay for his ambitious program? We broke it down by revenue source and proposal.

Raising Income

His team projects it could raise approximately $10bn by raising the corporate tax rate, taxes on the affluent, and current government revenues.

Critics say companies and the wealthy will move away, but this is disputed by reliable studies. Additionally, the corporate tax is on earnings made in the region no matter where a company is located, making the argument largely moot.

Business Levy Hike

The mayor-elect calculates a state tax increase from seven point two five percent and eleven point five percent on business earnings would produce about $5bn, a large portion of which would be funneled to the city. State leaders would have to authorize the plan. State lawmakers have previously supported comparable ideas, but the governor is against raising taxes.

Yet, the governor supports childcare for all, a very popular initiative because child services is commonly seen as cost-prohibitive, said an expert. It would be difficult for centrist lawmakers to “resist enacting a historical initiative”, he continued. “No one says ‘Nothing should be done to make childcare cheaper.’”

The missing element, he explained, has been a figure like Mamdani who says: “Yes, it costs money, and we will increase revenue to get it done.”

Raising Levies on the Affluent

Mamdani’s plan calls for generating four billion dollars with a 2% increase on those making more than $1m each year. Though it’s a city tax, the state government must approve the increase, and the proposal is generally opposed by moderate Democrats.

But there is a feasible route, he noted. Increasing taxes on the rich is widely accepted and, similar to the business tax hike, allocating the proceeds to fund favored initiatives makes it easier to promote in the state capital.

Rent Freeze

Regarding expense, a rent freeze on regulated housing is the easiest to implement – it’s nearly free. But, a halt must be approved by the housing panel, and there might not exist enough support on it before Mamdani appoints members with his preferred candidates.

Fare-Free and Efficient Transit

Mamdani projects free buses will cost a minimum of seven hundred million dollars, which includes an evasion rate of 48%. Observers say Mamdani could probably cover the expense by streamlining or cutting additional services in the municipal $116bn annual spending plan.

City-Owned Grocery Stores

A pilot program for five city-owned grocery stores that would be established in neglected “areas lacking food access” is projected at sixty million dollars and could additionally be paid for by shifting focus in the $116bn budget.

Building Affordable Housing Properties

Many commentators to the right of Mamdani have dismissed the proposal to invest approximately one hundred billion dollars building 200,000 low-income homes over a decade, mainly because it would necessitate massive borrowing. He clarified those opposing this point largely overlook that the plan is not to take on $100bn at once – the debt would be accrued and repaid in tranches over several government terms.

He also stressed the plan is not for no-cost homes, but affordable housing that would produce income to reduce loans. Moreover, the developments could in part be funded by private investment.

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

Childcare for All

Implementing universal childcare would cost between $2.5bn and $12bn by many projections, depending on whether it is a municipal or state initiative and additional variables. Financing is the big question mark – can the corporate and wealth taxes pass Albany? One analyst said he expected negotiated adjustments, as is typical with large-scale plans.

“Proposals that Mamdani promised will likely be scaled back,” the expert remarked. “Furthermore the state leader’s stated opposition to revenue hikes may just face reality – she likely cannot achieve the objectives she wants on the spending side without compromise on the tax side.”