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Ambitious promises to make the metropolis less expensive for residents catapulted progressive candidate Zohran Mamdani to his unlikely win on election day. Among them are fare-free transit, childcare for all, and a massive expansion in low-cost housing.

However, making the city more affordable for residents is an costly government task, and many economists and elected officials to Mamdani’s conservative side argue he faces numerous hurdles 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 attempt to undermine Mamdani and open up funding gaps that make it more difficult to pay for fresh initiatives.

Additionally, New York City must secure state legislature approval to adjust several revenue streams. One expert pointed to the state assembly blocking the municipality from raising pet registration costs in a prior year due to a dispute between the then mayor and a lawmaker.

“The dramatic example of putting it is the City can’t raise dog licensing fees without state legislature approval, and it was true then, and it remains the case today,” he noted.

Nonetheless, analysts point to favorable conditions: Mamdani’s ideas are widely supported and would solve basic problems. Democrats now hold large majorities in the legislature, and some identify economic and political pathways to making the proposals a success.

In what ways could Mamdani finance his ambitious agenda? Here’s a detailed look by revenue source and initiative.

Generating Income

His team estimates it could generate about $10bn by raising the business tax, levies on the wealthy, and existing fee and tax collections.

Detractors say companies and the wealthy will move away, but that is contradicted by credible research. Moreover, the corporate tax is on earnings made in the state no matter where a company is based, making the point largely moot.

Corporate Tax Increase

The mayor-elect calculates a state tax increase between 7.25% and eleven point five percent on business earnings would produce around five billion dollars, a large portion of which would be directed 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 opposes raising taxes.

Yet, the state leader supports childcare for all, a highly favored initiative because childcare is widely viewed as too expensive, said an expert. It would be challenging for centrist lawmakers to “oppose passing a landmark program”, he continued. “Nobody says ‘Nothing should be done to make childcare cheaper.’”

What’s been lacking, he explained, has been a figure like Mamdani who says: “Yes, it requires funding, and we will increase revenue to make it happen.”

Raising Levies on the Wealthy

The proposal calls for generating four billion dollars with a two percent increase on those making more than $1m each year. Although it’s a municipal levy, the state legislature must approve the increase, and the idea is generally resisted by centrist lawmakers.

But there is a political pathway, the expert said. Increasing revenue on the rich is widely accepted and, as with the corporate tax increase, allocating the funds to fund favored initiatives makes it easier to promote in Albany.

Rent Freeze

Regarding expense, a rent freeze on rent-controlled apartments is the simplest to implement – it’s minimally costly. But, a halt must be approved by the rent guidelines board, and there might not exist enough support on it before Mamdani fills it with his preferred candidates.

Free and Fast Transit

The plan projects fare-free transit will require a minimum of seven hundred million dollars, which includes an fare-dodging percentage of forty-eight percent. Observers say Mamdani could probably pay for the cost by optimizing or reducing other programs in the municipal $116bn city budget.

City-Owned Food Markets

A pilot program for several public food markets that would be established in neglected “areas lacking food access” is projected at $60m and could also be funded by shifting priorities in the one hundred sixteen billion dollar spending plan.

Building Affordable Housing Units

Numerous people to the right of Mamdani have dismissed the proposal to invest about $100bn building two hundred thousand affordable units over a decade, mainly because it would require substantial debt. The expert said those opposing this point mostly overlook that the plan is does not involve to take on one hundred billion dollars at once – the liability would be accrued and repaid in tranches over several government terms.

He also stressed the plan is not for free housing, but cost-effective residences that would produce income to pay down debt. Moreover, the developments could in part be privately financed.

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

Universal Childcare

Implementing universal childcare would cost from $2.5bn and twelve billion dollars by many projections, depending on whether it is a city or state program and additional variables. Funding is the major uncertainty – will the business and high-earner levies pass Albany? An expert said he expected negotiated adjustments, as often happens with large-scale plans.

“Proposals that Mamdani promised will likely get a haircut,” he said. “And the state leader’s expressed opposition to revenue hikes could confront practical limits – she probably can’t get the objectives she wants on the spending side without compromise on the tax side.”