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Ambitious promises to make the city more affordable for residents catapulted democratic socialist Zohran Mamdani to his unlikely win on Tuesday. Among them are free buses, universal childcare, and a large-scale increase in affordable homes.

However, turning the urban center more affordable for inhabitants is an costly government task, and numerous financial experts and politicians to Mamdani’s conservative side argue he faces too many obstacles to effectively follow through on his key proposals.

Adding complexity to the situation is the federal administration, which will almost certainly withhold financial support for the city in an attempt to undermine Mamdani and open up funding gaps that complicate efforts to fund fresh initiatives.

Additionally, the city must get state legislature authorization to modify several revenue streams. One expert cited the state assembly blocking the city from raising dog licensing fees in a prior year due to a dispute between the then mayor and a lawmaker.

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

However, he and other experts point to tailwinds: Mamdani’s proposals are widely supported and would address basic problems. Democrats now hold significant control in the state government, and several identify economic and viable routes to implementing the proposals a success.

In what ways might Mamdani finance his bold agenda? Here’s a detailed look by revenue source and proposal.

Raising Revenue

His team projects it could generate about $10bn by raising the corporate tax rate, taxes on the wealthy, and current government revenues.

Detractors say companies and the high-earners will relocate, but this is contradicted by reliable studies. Additionally, the business levy is on profits made in the region regardless of where a business is located, making the point at least partially moot.

Business Levy Hike

The mayor-elect calculates a rise in state taxes between 7.25% and eleven point five percent on corporate profits would generate around $5bn, much of which would be funneled to the city. State leaders would have to authorize the plan. State lawmakers have in the past backed similar proposals, but the state executive is against raising taxes.

However, the governor backs universal childcare, a highly favored initiative because childcare is widely viewed as too expensive, stated one policy director. It would be challenging for centrist lawmakers to “resist enacting a historical program”, he continued. “Nobody says ‘We shouldn’t do anything 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.”

Increasing Taxes on the Affluent

Mamdani’s plan calls for generating four billion dollars with a two percent hike on those earning more than $1m each year. Though it’s a municipal levy, the state legislature must authorize the rise, and the proposal is typically opposed by centrist Democrats.

However there is a feasible route, the expert noted. Raising revenue on the rich is widely accepted and, as with the corporate tax increase, using the funds to support favored initiatives makes it easier to promote in the state capital.

Rent Freeze

Regarding cost, a pause on rent hikes on rent-controlled apartments is the easiest to enforce – it’s minimally costly. However, a halt must be authorized by the housing panel, and there may not be sufficient backing on it until Mamdani fills it with his own appointments.

Free and Fast Buses

The plan projects free buses will require a minimum of seven hundred million dollars, which factors in an fare-dodging percentage of 48%. Observers say Mamdani could probably cover the cost by streamlining or reducing other programs in the city’s $116bn city budget.

Publicly Run Grocery Stores

A trial initiative for several public food markets that would be built in underserved “areas lacking food access” is estimated at sixty million dollars and could additionally be paid for by shifting priorities in the one hundred sixteen billion dollar budget.

Constructing Low-Cost Homes Units

Numerous people to the right of Mamdani have written off the plan to invest about one hundred billion dollars developing two hundred thousand low-income homes over a decade, largely because it would necessitate massive debt. He clarified those opposing this aspect largely overlook that the plan is does not involve to borrow $100bn immediately – the liability would be accumulated and repaid in tranches over multiple administrations.

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

“That’s the way the plan adds up,” he said.

Childcare for All

Implementing universal childcare would cost between $2.5bn and $12bn by many projections, depending on whether it is a city or state program and additional variables. Financing is the big question mark – will the business and high-earner levies be approved in Albany? An expert said he expected negotiated adjustments, as often happens with big proposals.

“Proposals that Mamdani promised will likely be scaled back,” the expert remarked. “And the governor’s stated resistance to revenue hikes may just face reality – she likely can’t get the things she desires on the spending side without compromise on the tax side.”