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Bold pledges to make the city less expensive for New Yorkers propelled progressive candidate Zohran Mamdani to his surprising victory on Tuesday. Included are fare-free transit, universal childcare, and a massive increase in affordable homes.

However, turning the city more affordable for inhabitants is an expensive government task, and many economists and politicians to Mamdani’s conservative side argue he confronts numerous hurdles to effectively follow through on his key proposals.

Adding complexity to the situation is the federal administration, which will likely withhold financial support for the city in an attempt to undermine Mamdani and create funding gaps that make it more difficult to pay for new priorities.

Additionally, the city must get state legislature approval to adjust many income sources. An analyst cited the state assembly blocking the municipality from raising pet registration costs in a prior year due to a disagreement between the then mayor and a state representative.

“The dramatic 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,” he said.

However, he and other experts highlight tailwinds: Mamdani’s proposals are very popular and would solve fundamental issues. Democrats now have significant control in the legislature, and several see economic and viable routes to making the proposals reality.

In what ways might Mamdani finance his ambitious program? Here’s a detailed look by funding method and proposal.

Generating Revenue

The Mamdani campaign projects it could raise about ten billion dollars by raising the business tax, taxes on the wealthy, and current government revenues.

Critics claim businesses and the wealthy will move away, but this is disputed by credible research. Additionally, the business levy is on profits made in the state regardless of where a business is located, rendering the argument largely irrelevant.

Corporate Tax Hike

The mayor-elect calculates a state tax increase from 7.25% and eleven point five percent on business earnings would generate about $5bn, much of which would be funneled to the city. The legislature and governor would have to authorize the plan. Legislative leaders have in the past backed similar proposals, but the state executive is against increasing levies.

However, the state leader backs universal childcare, a very popular proposal because childcare is widely viewed as too expensive, said an expert. It would be difficult for centrist lawmakers to “resist passing a landmark program”, he added. “Nobody argues ‘We shouldn’t do anything to make childcare cheaper.’”

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

Increasing Taxes on the Affluent

Mamdani’s plan calls for generating $4bn with a 2% increase on those earning more than $1m each year. Although it’s a city tax, the state legislature must approve the increase, and the idea is typically opposed by centrist Democrats.

But there is a political pathway, he noted. Raising revenue on the wealthy is widely accepted and, as with the business tax hike, using the proceeds to support popular programs helps to sell in Albany.

Rent Freeze

Regarding cost, a rent freeze on rent-controlled apartments is the simplest to implement – it’s nearly free. But, a halt must be approved by the housing panel, and there might not exist sufficient backing on it until Mamdani fills it with his preferred candidates.

Fare-Free and Efficient Buses

The plan projects fare-free transit will cost at least seven hundred million dollars, which factors in an fare-dodging percentage of 48%. Observers suggest Mamdani could likely pay for the expense by optimizing or reducing additional services in the city’s $116bn city budget.

Publicly Run Food Markets

A trial initiative for several public food markets that would be established in underserved “food deserts” is estimated at sixty million dollars and could additionally be paid for by adjusting priorities in the $116bn spending plan.

Constructing Affordable Housing Properties

Many commentators to the conservative side of Mamdani have written off the plan to invest approximately one hundred billion dollars developing 200,000 affordable units over a decade, mainly because it would necessitate substantial debt. He clarified those opposing this point largely overlook that the plan is does not involve to borrow $100bn at once – the debt would be accumulated and paid down in tranches over multiple administrations.

He emphasized the plan does not call for no-cost homes, but affordable housing that would produce income to reduce debt. Furthermore, the developments could partially be privately financed.

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

Universal Childcare

Implementing childcare access for all would cost from $2.5bn and twelve billion dollars by most estimates, based on whether it is a city or state program and other factors. Financing is the big question mark – will the corporate and wealth taxes be approved in the state capital? An expert commented he expected some compromise, as is typical with large-scale plans.

“The things that Mamdani promised will likely get a haircut,” he remarked. “Furthermore the state leader’s expressed resistance to revenue hikes may just face reality – she probably can’t get the objectives she wants on the spending side without compromise on the tax side.”