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Bold promises to transform the city less expensive for residents propelled progressive candidate Zohran Mamdani to his unlikely victory on Tuesday. Among them are free buses, childcare for all, and a massive expansion in affordable homes.

However, turning the city cost-effective for residents is an expensive public undertaking, and many economists and politicians to Mamdani’s right argue he confronts numerous hurdles to meaningfully deliver on his key proposals.

Further complicating matters is the federal administration, which will almost certainly withhold financial support for New York in an attempt to sabotage Mamdani and create budget holes that make it more difficult to pay for new priorities.

Additionally, the city must secure state government authorization to adjust many revenue streams. An analyst cited the state legislature blocking the city from raising pet registration costs in 2014 due to a dispute between the incumbent at the time and a lawmaker.

“A striking example of putting it is the 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.

Nonetheless, he and other experts point to tailwinds: Mamdani’s ideas are very popular and would address basic problems. Democrats now have significant control in the legislature, and several see financial and political pathways to implementing the proposals reality.

How could Mamdani pay for his ambitious program? Here’s a detailed look by funding method and proposal.

Generating Revenue

His team estimates it could raise about $10bn by raising the business tax, taxes on the wealthy, and current government revenues.

Critics claim businesses and the high-earners will relocate, but this is contradicted by reliable studies. Moreover, the corporate tax is on earnings made in the region no matter where a company is based, rendering the point at least partially irrelevant.

Corporate Tax Increase

Mamdani calculates a state tax increase from 7.25% and eleven point five percent on corporate profits would generate around five billion dollars, much of which would be directed to the city. The legislature and governor would have to approve the proposal. State lawmakers have in the past backed similar proposals, but the governor is against raising taxes.

Yet, the state leader backs universal childcare, a highly favored initiative because childcare is commonly seen as too expensive, said one policy director. It would be difficult for centrist lawmakers to “resist enacting a historical program”, he continued. “No one says ‘We shouldn’t do anything to reduce childcare costs.’”

The missing element, the expert explained, has been a leader like Mamdani who says: “Yeah, it requires funding, and we’re gonna raise taxes to get it done.”

Increasing Taxes on the Wealthy

The proposal aims to raising $4bn with a two percent increase on those earning above one million dollars each year. Though it’s a city tax, the state government must authorize the rise, and the idea is typically resisted by moderate Democrats.

However there is a political pathway, the expert noted. Increasing revenue on the rich is widely accepted and, similar to the corporate tax increase, allocating the funds to support favored initiatives makes it easier to sell in Albany.

Rent Freeze

Regarding cost, 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 might not exist enough support on it before Mamdani appoints members with his own appointments.

Free and Fast Transit

The plan projects fare-free transit will cost at least $700m, which includes an fare-dodging percentage of 48%. Observers say Mamdani could likely cover the expense by optimizing or cutting other programs in the municipal one hundred sixteen billion dollar annual spending plan.

Publicly Run Food Markets

A trial initiative for five city-owned grocery stores that would be built in underserved “areas lacking food access” is estimated at $60m and could also be funded by adjusting focus in the one hundred sixteen billion dollar spending plan.

Constructing Low-Cost Homes Units

Numerous commentators to the conservative side of Mamdani have written off the proposal to spend approximately $100bn building two hundred thousand low-income homes over 10 years, mainly because it would require substantial borrowing. He clarified those opposing this point largely miss that the plan is not to borrow $100bn at once – the debt would be accrued and paid down in tranches over multiple administrations.

He emphasized the plan is not for free housing, but cost-effective residences that would generate revenue to reduce loans. Furthermore, the projects could in part be privately financed.

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

Universal Childcare

Implementing universal childcare would require from two point five billion dollars and twelve billion dollars by many projections, depending on whether it is a municipal or state initiative and additional variables. Funding is the big question mark – will the business and high-earner levies be approved in the state capital? One analyst said he anticipated some compromise, as is typical with big proposals.

“The things that Mamdani pledged will likely get a haircut,” he said. “And the governor’s stated opposition to revenue hikes could face reality – she probably can’t get the things she desires on the expenditure front without compromise on the tax side.”