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Ambitious pledges to transform the city less expensive for New Yorkers catapulted progressive candidate Zohran Mamdani to his unlikely win on election day. Included are free buses, childcare for all, and a massive increase in affordable homes.

However, turning the city more affordable for residents is an costly public undertaking, and many economists and politicians to Mamdani’s right say he faces too many obstacles to effectively follow through on his signature ideas.

Adding complexity to matters is the federal administration, which will likely pull funding for New York in an attempt to sabotage Mamdani and create budget holes that make it more difficult to fund fresh initiatives.

Additionally, New York City must secure state government authorization to adjust many income sources. One expert pointed to the state assembly stopping the municipality from raising dog licensing fees in a prior year due to a dispute between the incumbent at the time and a state representative.

“A striking example of putting it is the City cannot increase pet permit charges without state approval, and it was true then, and it remains the case today,” he said.

Nonetheless, he and other experts highlight favorable conditions: Mamdani’s ideas are widely supported and would address basic problems. Democrats now have large majorities in the legislature, and some see financial and viable routes to making the plans a success.

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

Raising Income

The Mamdani campaign estimates it could raise approximately $10bn by increasing the business tax, levies on the affluent, and existing fee and tax collections.

Critics claim companies and the high-earners will move away, but this is disputed by reliable studies. Moreover, the corporate tax is on earnings made in the state regardless of where a business is based, making the argument at least partially irrelevant.

Corporate Tax Hike

The mayor-elect calculates a rise in state taxes between 7.25% 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 authorize the proposal. State lawmakers have previously backed similar proposals, but the state executive opposes raising taxes.

However, the state leader backs universal childcare, a very popular proposal because child services is commonly seen as cost-prohibitive, said an expert. It would be challenging for centrist lawmakers to “resist enacting a historical initiative”, he continued. “No one says ‘Nothing should be done to reduce childcare costs.’”

The missing element, the expert said, has been a leader like Mamdani who declares: “Yeah, it costs money, and we’re gonna raise taxes to make it happen.”

Raising Taxes on the Affluent

The proposal aims to generating $4bn with a two percent increase on those earning more than one million dollars annually. Though it’s a municipal levy, the state legislature must approve the rise, and the proposal is generally resisted by moderate Democrats.

However there is a political pathway, the expert said. Increasing revenue on the rich is broadly popular and, as with the corporate tax increase, allocating the funds to fund favored initiatives helps to sell in Albany.

Halt on Rent Increases

Regarding cost, a rent freeze on regulated housing is the easiest to enforce – it’s nearly free. But, a freeze must be approved by the rent guidelines board, and there may not be enough support on it until Mamdani appoints members with his own appointments.

Fare-Free and Efficient Transit

Mamdani projects free buses will cost at least $700m, which factors in an fare-dodging percentage of 48%. Analysts suggest Mamdani could probably pay for the cost by streamlining or cutting additional services in the city’s one hundred sixteen billion dollar city budget.

Publicly Run Food Markets

A trial initiative for five city-owned grocery stores that would be established in underserved “areas lacking food access” is estimated at sixty million dollars and could also be funded by adjusting priorities in the one hundred sixteen billion dollar spending plan.

Constructing Affordable Housing Properties

Many commentators to the right of Mamdani have written off the proposal to spend approximately one hundred billion dollars developing 200,000 affordable units over 10 years, largely because it would necessitate substantial debt. He said those arguing against this point largely overlook that the plan is not to take on one hundred billion dollars at once – the debt would be accumulated and paid down in phases over several government terms.

He emphasized the proposal is not for free housing, but cost-effective residences that would produce income to reduce loans. Furthermore, the projects could partially be funded by private investment.

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

Childcare for All

Establishing universal childcare would require between two point five billion dollars and $12bn by most estimates, based on whether it is a city or state program and other factors. Financing is the major uncertainty – will the business and high-earner levies be approved in the state capital? One analyst commented he expected negotiated adjustments, as is typical with big proposals.

“The things that Mamdani pledged will likely get a haircut,” the expert said. “Furthermore the state leader’s expressed opposition to revenue hikes could confront practical limits – she likely can’t get the things she wants on the spending side without compromise on the tax side.”