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Ambitious pledges to make the city more affordable for New Yorkers propelled progressive candidate Zohran Mamdani to his surprising victory on Tuesday. Among them are fare-free transit, universal childcare, and a massive increase in low-cost housing.

However, turning the urban center more affordable for inhabitants is an costly public undertaking, and many financial experts and politicians to Mamdani’s right say he faces too many obstacles to effectively follow through on his signature ideas.

Further complicating matters is the national government, which will almost certainly pull funding for New York in an effort to undermine Mamdani and open up funding gaps that complicate efforts to pay for fresh initiatives.

Additionally, the city must secure state legislature authorization to modify many revenue streams. An analyst pointed to the state legislature blocking the city from raising dog licensing fees in a prior year due to a disagreement between the then mayor and a state representative.

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

Nonetheless, analysts highlight favorable conditions: Mamdani’s proposals are very popular and would address basic problems. Democrats now have large majorities in the legislature, and some identify financial and political pathways to making the plans a success.

In what ways might Mamdani finance his ambitious program? We broke it down by revenue source and proposal.

Generating Revenue

His team projects it could raise approximately ten billion dollars by increasing the business tax, levies on the wealthy, and current government revenues.

Critics claim companies and the wealthy will relocate, but that is contradicted by credible research. Additionally, the business levy is on profits made in the region no matter where a business is located, rendering the argument largely irrelevant.

Corporate Tax Hike

Mamdani estimates a state tax increase between 7.25% and eleven point five percent on business earnings would produce around five billion dollars, much of which would be funneled to New York City. State leaders would have to approve the plan. State lawmakers have previously backed similar proposals, but the governor opposes raising taxes.

However, the governor supports childcare for all, a highly favored proposal because childcare is widely viewed as cost-prohibitive, said an expert. It would be challenging for moderate Democrats to “oppose passing a historical program”, he continued. “No one argues ‘We shouldn’t do anything to make childcare cheaper.’”

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

Increasing Levies on the Wealthy

Mamdani’s plan aims to generating $4bn with a 2% hike on those making above $1m annually. Though it’s a municipal levy, the state legislature must approve the rise, and the idea is generally resisted by centrist lawmakers.

But there is a political pathway, he said. Increasing taxes on the wealthy is widely accepted and, similar to the business tax hike, using the funds to support popular programs makes it easier to sell in Albany.

Halt on Rent Increases

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

Fare-Free and Efficient Transit

Mamdani projects fare-free transit will require at least seven hundred million dollars, which factors in an evasion rate of 48%. Observers say Mamdani could probably cover the cost by optimizing or reducing other programs in the city’s $116bn city budget.

Publicly Run Grocery Stores

A pilot program for several public food markets that would be built in underserved “food deserts” is estimated at sixty million dollars and could additionally be paid for by adjusting priorities in the one hundred sixteen billion dollar budget.

Building Affordable Housing Units

Numerous commentators to the right of Mamdani have dismissed the plan to spend about one hundred billion dollars developing 200,000 low-income homes over a decade, largely because it would necessitate substantial borrowing. The expert said those arguing against this aspect largely overlook that the initiative is does not involve to take on $100bn immediately – the debt would be accrued and paid down in tranches over multiple administrations.

He also stressed the proposal does not call for no-cost homes, but affordable housing that would produce income to reduce loans. Furthermore, the developments could partially be funded by private investment.

“That’s the way the proposal adds up,” he concluded.

Universal Childcare

Implementing childcare access for all would cost from two point five billion dollars and twelve billion dollars by many projections, based on whether it is a municipal or state initiative and other factors. Financing is the big question mark – can the business and high-earner levies be approved in the state capital? An expert said he anticipated some compromise, as is typical with large-scale plans.

“Proposals that Mamdani promised will likely be scaled back,” the expert said. “And the governor’s expressed opposition to tax increases could face reality – she likely cannot achieve the things she wants on the spending side without some flexibility on the revenue side.”