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Ambitious promises to make the metropolis more affordable for residents catapulted democratic socialist Zohran Mamdani to his unlikely win on Tuesday. Included are fare-free transit, universal childcare, and a massive increase in low-cost housing.

However, making the city cost-effective for residents is an costly government task, and many economists and elected officials to Mamdani’s conservative side say he faces too many obstacles to effectively follow through on his signature ideas.

Further complicating matters is the national government, which will likely pull funding for the city in an effort to sabotage Mamdani and create budget holes that complicate efforts to pay for new priorities.

Additionally, the city must secure state legislature authorization to modify many revenue streams. An analyst cited the state assembly stopping the city from increasing pet registration costs in 2014 due to a dispute between the then mayor and a lawmaker.

“The dramatic example of putting it is New York City cannot increase pet permit charges without state legislature approval, and it was true then, and it’s true now,” the expert noted.

Nonetheless, he and other experts highlight favorable conditions: Mamdani’s proposals are widely supported and would address basic problems. Democrats now have large majorities in the state government, and some identify financial and political pathways to making the plans reality.

How might Mamdani finance his ambitious agenda? We broke it down by funding method and initiative.

Raising Income

The Mamdani campaign projects it could generate about ten billion dollars by raising the corporate tax rate, taxes on the affluent, and existing fee and tax collections.

Critics claim companies and the high-earners will move away, but that is contradicted by reliable studies. Moreover, the business levy is on profits made in the state regardless of where a business is based, rendering the argument largely moot.

Corporate Tax Hike

The mayor-elect calculates a rise in state taxes between seven point two five percent and 11.5% on corporate profits would produce around $5bn, much of which would be funneled to the city. The legislature and governor would have to approve the proposal. State lawmakers have in the past supported similar proposals, but the state executive opposes raising taxes.

However, the governor supports universal childcare, a very popular proposal because childcare is widely viewed as cost-prohibitive, said an expert. It would be challenging for centrist lawmakers to “oppose passing a historical program”, he added. “No one argues ‘Nothing should be done to make childcare cheaper.’”

What’s been lacking, the expert explained, has been a figure like Mamdani who says: “Yes, it costs money, and we’re gonna increase revenue to make it happen.”

Increasing Taxes on the Wealthy

The proposal aims to generating $4bn with a 2% hike on those earning above one million dollars annually. Although it’s a city tax, the state government must authorize the increase, and the idea is generally resisted by moderate lawmakers.

However there is a feasible route, he noted. Increasing revenue on the rich is broadly popular and, similar to the business tax hike, allocating the funds to support favored initiatives helps to sell in Albany.

Rent Freeze

Regarding cost, a pause on rent hikes on rent-controlled apartments is the easiest to enforce – it’s nearly free. But, a freeze must be approved by the housing panel, and there may not be enough support on it before Mamdani fills it with his preferred candidates.

Free and Fast Buses

The plan projects fare-free transit will cost a minimum of $700m, which factors in an fare-dodging percentage of 48%. Observers say Mamdani could probably cover the expense by optimizing or cutting additional services in the municipal $116bn city budget.

City-Owned Food Markets

A pilot program for several city-owned grocery stores that would be built in underserved “areas lacking food access” is projected at $60m and could additionally be paid for by shifting priorities in the $116bn budget.

Building Low-Cost Homes Properties

Numerous commentators to the right of Mamdani have dismissed the proposal to spend about one hundred billion dollars developing two hundred thousand affordable units over 10 years, largely because it would require massive borrowing. He said those arguing against this aspect largely overlook that the initiative is not to borrow $100bn at once – the debt would be accrued and paid down in tranches over several government terms.

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

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

Childcare for All

Establishing universal childcare would require from 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 – can the business and high-earner levies be approved in the state capital? An expert commented he anticipated some compromise, as is typical with large-scale plans.

“Proposals that Mamdani promised will probably get a haircut,” he remarked. “And the state leader’s expressed resistance to tax increases could confront practical limits – she probably cannot achieve the objectives she desires on the spending side without some flexibility on the tax side.”