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Ambitious pledges to transform the city more affordable for residents propelled progressive candidate Zohran Mamdani to his unlikely win on Tuesday. Among them are fare-free transit, universal childcare, and a large-scale increase in affordable homes.

However, making the city more affordable for inhabitants is an expensive public undertaking, and numerous financial experts and elected officials to Mamdani’s conservative side say he confronts too many obstacles to effectively follow through on his signature ideas.

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

Additionally, New York City must secure state legislature approval to adjust several income sources. An analyst pointed to the state legislature blocking the city from raising dog licensing fees in 2014 due to a dispute between the then mayor and a state representative.

“The dramatic example of stating the issue is New York City can’t raise pet permit charges without state approval, and that held true previously, and it remains the case today,” he said.

Nonetheless, he and other experts point to tailwinds: Mamdani’s ideas are very popular and would address fundamental issues. Democrats now hold large majorities in the state government, and several identify economic and political pathways to making the plans reality.

How might Mamdani pay for his bold agenda? Here’s a detailed look by revenue source and initiative.

Generating Income

His team projects it could raise approximately $10bn by increasing the corporate tax rate, levies on the affluent, and current government revenues.

Critics say businesses and the wealthy will relocate, but that is contradicted by reliable studies. Moreover, the corporate tax is on profits made in the state no matter where a company is based, making the point at least partially moot.

Business Levy Hike

Mamdani calculates a rise in state taxes between seven point two five percent and 11.5% on corporate profits would produce around five billion dollars, much of which would be directed to the city. State leaders would have to approve the plan. Legislative leaders have previously backed comparable ideas, but the governor opposes increasing levies.

However, the state leader backs childcare for all, a very popular initiative because childcare is widely viewed as too expensive, stated an expert. It would be difficult for centrist lawmakers to “resist enacting a historical program”, he continued. “No one argues ‘Nothing should be done to reduce childcare costs.’”

What’s been lacking, the expert said, has been a figure like Mamdani who says: “Yeah, it requires funding, and we will raise taxes to make it happen.”

Increasing Levies on the Wealthy

Mamdani’s plan calls for generating $4bn with a 2% hike on those making more than $1m each year. Although it’s a municipal levy, the state government must approve the increase, and the idea is typically opposed by moderate lawmakers.

But there is a feasible route, the expert said. Increasing revenue on the rich is broadly popular and, similar to the business tax hike, allocating the funds to support favored initiatives makes it easier to sell in the state capital.

Rent Freeze

In terms of cost, a rent freeze on rent-controlled apartments is the simplest to implement – it’s minimally costly. However, a freeze must be authorized by the housing panel, and there might not exist sufficient backing on it before Mamdani appoints members with his preferred candidates.

Fare-Free and Efficient Transit

Mamdani estimates free buses will require a minimum of $700m, which includes an fare-dodging percentage of forty-eight percent. Analysts say Mamdani could probably pay for the expense by optimizing or reducing additional services 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 $60m and could also be paid for by shifting focus in the one hundred sixteen billion dollar budget.

Building Affordable Housing Units

Numerous commentators to the right of Mamdani have dismissed the plan to invest approximately $100bn developing 200,000 affordable units over a decade, largely because it would necessitate massive borrowing. He clarified those opposing this aspect largely overlook that the plan is does not involve to borrow $100bn immediately – the liability would be accrued and repaid in tranches over multiple administrations.

He also stressed the plan is not for free housing, but affordable housing that would produce income to pay down debt. Furthermore, the developments could partially be privately financed.

“This is how the plan adds up,” the expert said.

Universal Childcare

Establishing universal childcare would require between $2.5bn and twelve billion dollars by many projections, based on whether it is a city or state program and other factors. Financing is the big question mark – can the corporate and wealth taxes pass the state capital? One analyst said he anticipated some compromise, as often happens with large-scale plans.

“The things that Mamdani pledged will probably be scaled back,” the expert said. “Furthermore the state leader’s expressed resistance to revenue hikes may just face reality – she probably cannot achieve the objectives she wants on the expenditure front without some flexibility on the tax side.”