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Ambitious promises to make the city more affordable for New Yorkers catapulted progressive candidate Zohran Mamdani to his unlikely win on election day. Included are fare-free transit, childcare for all, and a large-scale increase in low-cost housing.

However, making the urban center cost-effective for inhabitants is an costly government task, and numerous economists and elected officials to Mamdani’s right argue he faces numerous obstacles to effectively follow through on his key proposals.

Adding complexity to matters is the national government, which will likely pull funding for the city in an effort to sabotage Mamdani and create funding gaps that complicate efforts to pay for fresh initiatives.

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

“A striking way of stating the issue is the 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 ideas are very popular and would solve basic problems. The Democratic party now have large majorities in the legislature, and several identify economic and political pathways to implementing the plans reality.

How could Mamdani finance his bold program? Here’s a detailed look by revenue source and initiative.

Raising Revenue

The Mamdani campaign projects it could generate about $10bn by increasing the business tax, levies on the wealthy, and existing fee and tax collections.

Critics say businesses and the wealthy will relocate, but this is contradicted by credible research. Additionally, the business levy is on earnings made in the state no matter where a company is located, rendering the point largely moot.

Corporate Tax Hike

The mayor-elect calculates a state tax increase from 7.25% and 11.5% on business earnings would generate around $5bn, much of which would be funneled to the city. State leaders would have to approve the proposal. State lawmakers have previously supported comparable ideas, but the governor opposes raising taxes.

Yet, the state leader backs childcare for all, a very popular initiative because childcare is widely viewed as too expensive, stated an expert. It would be difficult for centrist lawmakers to “oppose passing a landmark program”, he continued. “Nobody says ‘We shouldn’t do anything to reduce childcare costs.’”

What’s been lacking, the expert explained, has been a leader like Mamdani who says: “Yes, it requires funding, and we’re gonna increase revenue to get it done.”

Increasing Levies on the Wealthy

The proposal calls for generating $4bn with a 2% hike on those earning above $1m annually. Although it’s a municipal levy, the state government must authorize the rise, and the proposal is generally resisted by centrist lawmakers.

However there is a feasible route, the expert noted. Raising revenue on the wealthy is broadly popular and, as with the corporate tax increase, using the funds to fund favored initiatives helps to promote in Albany.

Halt on Rent Increases

In terms of expense, a pause on rent hikes on rent-controlled apartments is the simplest to enforce – it’s nearly free. However, a freeze must be approved by the rent guidelines board, and there might not exist sufficient backing on it before Mamdani fills it with his preferred candidates.

Fare-Free and Efficient Buses

Mamdani estimates fare-free transit will cost a minimum of seven hundred million dollars, which includes an evasion rate of 48%. Observers say Mamdani could likely pay for the expense by streamlining or reducing other programs in the municipal $116bn annual spending plan.

City-Owned Grocery Stores

A pilot program for five city-owned grocery stores that would be built in neglected “food deserts” is estimated at sixty million dollars and could also be paid for by adjusting priorities in the one hundred sixteen billion dollar budget.

Constructing Low-Cost Homes Properties

Many commentators to the right of Mamdani have dismissed the plan to spend about $100bn building 200,000 affordable units over 10 years, mainly because it would require massive borrowing. The expert clarified those arguing against this aspect mostly overlook that the initiative is not to borrow $100bn immediately – the liability would be accrued and paid down in tranches over multiple administrations.

He also stressed the plan does not call for free housing, but cost-effective residences that would generate revenue to reduce loans. Furthermore, the projects could in part be privately financed.

“This is how the plan adds up,” he said.

Universal Childcare

Establishing childcare access for all would require from $2.5bn and twelve billion dollars by most estimates, based on whether it is a city or state program and other factors. Funding is the big question mark – can the business and high-earner levies be approved in the state capital? An expert said he anticipated negotiated adjustments, as often happens with large-scale plans.

“The things that Mamdani promised will probably get a haircut,” he said. “Furthermore the governor’s stated resistance to revenue hikes could confront practical limits – she probably can’t get the things she desires on the expenditure front without some flexibility on the tax side.”