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Bold pledges to make the city more affordable for residents catapulted progressive candidate Zohran Mamdani to his unlikely victory on election day. Among them are free buses, universal childcare, and a massive expansion in low-cost housing.

However, turning the city cost-effective for residents is an expensive public undertaking, and numerous economists and elected officials to Mamdani’s conservative side argue he faces numerous obstacles to meaningfully deliver on his key proposals.

Adding complexity to the situation is the national government, which will likely withhold financial support for New York in an attempt to sabotage Mamdani and open up budget holes that make it more difficult to pay for fresh initiatives.

Additionally, the city must secure state legislature approval to modify many revenue streams. One expert pointed to the state legislature stopping the municipality from raising dog licensing fees in 2014 due to a disagreement between the incumbent at the time and a lawmaker.

“The dramatic way of putting it is New York City can’t raise pet permit charges without state legislature approval, and it was true then, and it remains the case today,” the expert noted.

However, he and other experts point to favorable conditions: Mamdani’s proposals are very popular and would solve basic problems. Democrats now have significant control in the state government, and several identify financial and political pathways to implementing the proposals reality.

In what ways could Mamdani finance his ambitious agenda? We broke it down by funding method and proposal.

Raising Revenue

The Mamdani campaign projects it could raise approximately $10bn by raising the business tax, levies on the wealthy, and existing fee and tax collections.

Critics claim companies and the wealthy will move away, but this is disputed by reliable studies. Moreover, the corporate tax is on earnings made in the state no matter where a company is based, rendering the point at least partially moot.

Business Levy Hike

The mayor-elect estimates a state tax increase between seven point two five percent and 11.5% on corporate profits would generate around $5bn, a large portion of which would be directed to the city. State leaders would have to authorize the plan. State lawmakers have previously backed comparable ideas, but the governor is against raising taxes.

However, the state leader backs universal childcare, a highly favored proposal because childcare is widely viewed as cost-prohibitive, stated one policy director. It would be difficult for moderate Democrats to “resist passing a historical initiative”, he continued. “No one says ‘We shouldn’t do anything to make childcare cheaper.’”

What’s been lacking, he explained, has been a figure like Mamdani who declares: “Yeah, it requires funding, and we will increase revenue to get it done.”

Increasing Levies on the Affluent

Mamdani’s plan aims to generating four billion dollars with a two percent increase on those making above one million dollars each year. Though it’s a municipal levy, the state government must authorize the rise, and the idea is generally opposed by centrist lawmakers.

However there is a feasible route, he said. Increasing taxes on the rich is broadly popular and, as with the business tax hike, using the funds to support favored initiatives helps to sell in Albany.

Rent Freeze

In terms of expense, a rent freeze on rent-controlled apartments is the simplest to implement – it’s nearly free. But, a halt must be authorized by the housing panel, and there may not be enough support on it until Mamdani fills it with his own appointments.

Fare-Free and Efficient Buses

The plan projects fare-free transit will require at least $700m, which factors in an fare-dodging percentage of 48%. Analysts say Mamdani could probably cover the cost by optimizing or cutting other programs in the city’s one hundred sixteen billion dollar city budget.

City-Owned Grocery Stores

A pilot program for several public food markets that would be established in neglected “food deserts” is estimated at $60m and could additionally be funded by adjusting priorities in the $116bn spending plan.

Building Affordable Housing Units

Numerous commentators to the conservative side of Mamdani have dismissed the plan to spend approximately $100bn building 200,000 affordable units over a decade, largely because it would require massive debt. He clarified those arguing against this point largely miss that the plan is does not involve to borrow $100bn at once – the debt would be accrued and repaid in tranches over multiple administrations.

He also stressed the proposal is not for no-cost homes, but affordable housing that would generate revenue to reduce debt. Furthermore, the developments could partially be privately financed.

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

Universal Childcare

Establishing childcare access for all would require between $2.5bn and twelve billion dollars by many projections, depending on whether it is a city or state program and other factors. Funding is the major uncertainty – will the business and high-earner levies pass Albany? One analyst said he expected some compromise, as often happens with large-scale plans.

“The things that Mamdani pledged will probably be scaled back,” the expert said. “And the state leader’s stated resistance to revenue hikes could face reality – she probably can’t get the things she wants on the expenditure front without compromise on the tax side.”