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Ambitious promises to transform the metropolis less expensive for residents propelled progressive candidate Zohran Mamdani to his surprising win on election day. Among them are free buses, childcare for all, and a massive increase in affordable homes.

However, turning the urban center cost-effective for residents is an expensive government task, and many financial experts and politicians to Mamdani’s right argue he faces too many obstacles to meaningfully deliver on his key proposals.

Adding complexity to the situation is the national government, which will likely pull funding for New York in an attempt to undermine Mamdani and open up funding gaps that complicate efforts to pay for fresh initiatives.

Additionally, New York City must secure state government approval to adjust many revenue streams. One expert cited the state assembly stopping the city from increasing pet registration costs in 2014 due to a disagreement between the incumbent at the time and a lawmaker.

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

Nonetheless, analysts point to favorable conditions: Mamdani’s proposals are very popular and would solve fundamental issues. Democrats now hold significant control in the legislature, and several see economic and political pathways to making the plans a success.

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

Raising Income

His team estimates it could generate approximately $10bn by increasing the corporate tax rate, taxes on the wealthy, and existing fee and tax collections.

Detractors claim businesses and the wealthy will relocate, but this is contradicted by credible research. Moreover, the corporate tax is on earnings made in the region no matter where a business is located, making the point at least partially moot.

Corporate Tax Hike

The mayor-elect calculates a state tax increase between seven point two five percent and eleven point five percent on business earnings would produce around five billion dollars, much of which would be funneled to New York City. The legislature and governor would have to authorize the proposal. State lawmakers have in the past backed comparable ideas, but the state executive is against raising taxes.

Yet, the state leader supports universal childcare, a highly favored initiative because child services is widely viewed as cost-prohibitive, said one policy director. It would be difficult for moderate Democrats to “oppose passing a historical program”, he added. “No one argues ‘Nothing should be done to reduce childcare costs.’”

What’s been lacking, the expert explained, has been a figure like Mamdani who declares: “Yes, it costs money, and we will raise taxes to make it happen.”

Raising Levies on the Wealthy

The proposal calls for generating $4bn with a 2% increase on those making above $1m each year. Although it’s a municipal levy, the state government must approve the increase, and the idea is generally opposed by centrist Democrats.

But there is a feasible route, he noted. Raising revenue on the rich is broadly popular and, as with the business tax hike, using the funds to fund popular programs helps to promote in the state capital.

Rent Freeze

Regarding cost, a pause on rent hikes on regulated housing is the simplest to implement – it’s nearly free. 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 own appointments.

Fare-Free and Efficient Buses

Mamdani projects fare-free transit will require at least seven hundred million dollars, which factors in an fare-dodging percentage of forty-eight percent. Observers suggest Mamdani could probably pay for the cost by optimizing or reducing other programs in the municipal one hundred sixteen billion dollar city budget.

Publicly Run Food Markets

A pilot program for several public food markets that would be built in underserved “areas lacking food access” is projected at sixty million dollars and could additionally be funded by shifting focus in the $116bn budget.

Building Low-Cost Homes Properties

Many people to the right of Mamdani have written off the plan to invest about one hundred billion dollars developing 200,000 low-income homes over 10 years, mainly because it would require substantial borrowing. He said those arguing against this point largely miss that the plan is does not involve to take on one hundred billion dollars immediately – the debt would be accrued and repaid in phases over multiple administrations.

He also stressed the plan does not call for no-cost homes, but cost-effective residences that would generate revenue to pay down debt. Furthermore, the developments could partially be funded by private investment.

“That’s the way the proposal is feasible,” the expert said.

Universal Childcare

Implementing universal childcare would cost from two point five billion dollars and twelve billion dollars by most estimates, based on whether it is a city or state program and additional variables. Financing is the major uncertainty – will the corporate and wealth taxes pass the state capital? An expert said he anticipated some compromise, as is typical with large-scale plans.

“Proposals that Mamdani promised will probably be scaled back,” the expert said. “Furthermore the state leader’s stated opposition to revenue hikes may just confront practical limits – she probably can’t get the objectives she wants on the expenditure front without some flexibility on the revenue side.”