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Ambitious promises to transform the city more affordable for residents propelled progressive candidate Zohran Mamdani to his unlikely win on Tuesday. Among them are free buses, childcare for all, and a large-scale expansion in affordable homes.

However, making the city more affordable for residents is an costly public undertaking, and many economists and politicians to Mamdani’s conservative side say he faces too many obstacles to meaningfully deliver on his key proposals.

Adding complexity to the situation is the national government, which will almost certainly withhold financial support for New York in an attempt to undermine Mamdani and create budget holes that complicate efforts to fund fresh initiatives.

Additionally, the city must secure state government approval to modify many revenue streams. One expert cited the state assembly blocking the municipality from increasing pet registration costs in a prior year due to a dispute between the then mayor and a state representative.

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

Nonetheless, analysts highlight favorable conditions: Mamdani’s proposals are widely supported and would address fundamental issues. Democrats now hold significant control in the state government, and several see financial and viable routes to implementing the plans a success.

How might Mamdani pay for his bold agenda? We broke it down by revenue source and proposal.

Raising Revenue

His team estimates it could raise approximately $10bn by raising the corporate tax rate, taxes on the wealthy, and existing fee and tax collections.

Detractors say companies and the wealthy will move away, but this is disputed by credible research. Moreover, the business levy is on earnings made in the state no matter where a company is located, rendering the argument largely moot.

Business Levy Hike

Mamdani calculates a rise in state taxes between seven point two five percent and 11.5% on business earnings would generate around five billion dollars, a large portion of which would be directed to New York City. The legislature and governor would have to approve the plan. State lawmakers have previously backed similar proposals, but the governor is against raising taxes.

Yet, the state leader supports childcare for all, a very popular initiative because child services is commonly seen as too expensive, stated an expert. It would be difficult for moderate Democrats to “resist enacting a historical program”, he added. “Nobody says ‘Nothing should be done to reduce childcare costs.’”

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

Raising Levies on the Wealthy

Mamdani’s plan aims to generating four billion dollars with a 2% hike on those making above one million dollars annually. Though it’s a city tax, the state government must approve the increase, and the idea is typically resisted by centrist Democrats.

But there is a feasible route, the expert said. Raising taxes on the rich is widely accepted and, as with the corporate tax increase, allocating the proceeds to support favored initiatives helps to sell in Albany.

Halt on Rent Increases

In terms of expense, a pause on rent hikes on regulated housing is the easiest to implement – it’s nearly free. But, a halt must be authorized by the rent guidelines board, and there may not be sufficient backing on it before Mamdani appoints members with his own appointments.

Fare-Free and Efficient Buses

Mamdani projects free buses will cost at least $700m, which includes an fare-dodging percentage of forty-eight percent. Analysts say Mamdani could probably pay for the expense by streamlining or cutting other programs in the city’s one hundred sixteen billion dollar annual spending plan.

City-Owned Grocery Stores

A pilot program for five public food markets that would be built in underserved “food deserts” is estimated at sixty million dollars and could additionally be paid for by adjusting focus in the $116bn spending plan.

Building Low-Cost Homes Properties

Many people to the conservative side of Mamdani have dismissed the plan to invest approximately $100bn building 200,000 affordable units over a decade, largely because it would require massive borrowing. He clarified those arguing against this aspect mostly overlook that the plan is not to borrow one hundred billion dollars at once – the liability would be accumulated and repaid in tranches over several government terms.

He emphasized the proposal does not call for free housing, but cost-effective residences that would produce income to reduce debt. Furthermore, the developments could partially be privately financed.

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

Universal Childcare

Implementing universal childcare would cost from $2.5bn and $12bn by most estimates, based on whether it is a municipal or state initiative and additional variables. Funding is the major uncertainty – will the corporate and wealth taxes be approved in Albany? One analyst said he anticipated negotiated adjustments, as often happens with big proposals.

“Proposals that Mamdani pledged will likely get a haircut,” he remarked. “And the state leader’s stated resistance to revenue hikes could face reality – she probably cannot achieve the things she wants on the spending side without some flexibility on the tax side.”