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Bold pledges to transform the metropolis more affordable for residents catapulted progressive candidate Zohran Mamdani to his surprising victory on election day. Included are fare-free transit, universal childcare, and a massive increase in affordable homes.

However, making the city more affordable for residents is an expensive public undertaking, and many economists and politicians to Mamdani’s conservative side say he faces too many hurdles to effectively follow through on his signature ideas.

Adding complexity to matters is the national government, which will likely pull funding for the city in an effort to undermine Mamdani and create funding gaps that make it more difficult to pay for new priorities.

Additionally, the city must get state government authorization to modify many revenue streams. One expert pointed to the state legislature blocking the city from increasing pet registration costs in a prior year due to a dispute between the incumbent at the time and a state representative.

“A striking example of putting it is New York City can’t raise dog licensing fees without state legislature approval, and it was true then, and it’s true now,” the expert noted.

Nonetheless, analysts highlight tailwinds: Mamdani’s proposals are widely supported and would address basic problems. Democrats now hold large majorities in the legislature, and several see economic and political pathways to implementing the plans a success.

How might Mamdani finance his bold agenda? We broke it down by funding method and initiative.

Generating Income

The Mamdani campaign projects it could generate about ten billion dollars by increasing the business tax, levies on the wealthy, and current government revenues.

Critics claim businesses and the wealthy will relocate, but that is contradicted by credible research. Moreover, the corporate tax is on profits made in the state no matter where a company is based, rendering the argument at least partially moot.

Corporate Tax Increase

The mayor-elect estimates a state tax increase from seven point two five percent and 11.5% on business earnings would produce about $5bn, a large portion of which would be directed to New York City. The legislature and governor would have to authorize the plan. State lawmakers have previously backed similar proposals, but the governor opposes raising taxes.

Yet, the state leader backs universal childcare, a highly favored initiative because childcare is widely viewed as cost-prohibitive, said one policy director. It would be challenging for centrist lawmakers to “resist passing a landmark initiative”, he added. “Nobody argues ‘Nothing should be done to reduce childcare costs.’”

What’s been lacking, he said, has been a figure like Mamdani who declares: “Yeah, it costs money, and we will raise taxes to get it done.”

Increasing Taxes on the Affluent

The proposal aims to generating four billion dollars with a 2% increase on those making more than one million dollars annually. Though it’s a city tax, the state government must authorize the increase, and the idea is generally resisted by moderate Democrats.

However there is a feasible route, he noted. Raising revenue on the rich is widely accepted and, as with the corporate tax increase, allocating the proceeds to fund favored initiatives helps to promote in Albany.

Halt on Rent Increases

In terms of expense, a rent freeze on rent-controlled apartments is the easiest to implement – it’s minimally costly. But, a freeze must be authorized by the housing panel, and there may not be enough support on it before Mamdani appoints members with his preferred candidates.

Free and Fast Transit

Mamdani estimates free buses will cost a minimum of $700m, which includes an fare-dodging percentage of forty-eight percent. Analysts suggest Mamdani could likely cover the expense by streamlining or reducing other programs in the municipal $116bn city budget.

Publicly Run Food Markets

A trial initiative for five city-owned grocery stores that would be established in underserved “food deserts” is estimated at sixty million dollars and could additionally be paid for by shifting priorities in the $116bn budget.

Constructing Low-Cost Homes Properties

Numerous commentators to the right of Mamdani have dismissed the proposal to invest about one hundred billion dollars building two hundred thousand affordable units over a decade, mainly because it would require substantial debt. He said those opposing this point largely overlook that the initiative is not to borrow $100bn immediately – the debt would be accrued and repaid in phases over multiple administrations.

He also stressed the proposal does not call for free housing, but affordable housing that would generate revenue to reduce debt. Moreover, the developments could in part be funded by private investment.

“That’s the way the plan adds up,” the expert concluded.

Childcare for All

Implementing universal childcare would cost from $2.5bn and twelve billion dollars by most estimates, depending on whether it is a city or state program and other factors. Financing is the major uncertainty – can the corporate and wealth taxes pass Albany? An expert commented he anticipated some compromise, as is typical with big proposals.

“The things that Mamdani promised will likely be scaled back,” he said. “Furthermore the state leader’s expressed opposition to revenue hikes could confront practical limits – she likely can’t get the objectives she desires on the expenditure front without compromise on the revenue side.”