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Ambitious pledges to transform the metropolis less expensive for New Yorkers catapulted progressive candidate Zohran Mamdani to his unlikely victory on Tuesday. Among them are fare-free transit, universal childcare, and a large-scale expansion in affordable homes.

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

Adding complexity to matters is the federal administration, which will likely withhold financial support for New York in an attempt to undermine Mamdani and create funding gaps that make it more difficult to fund new priorities.

Additionally, New York City must get state legislature authorization to modify many income sources. One expert pointed to the state assembly blocking the municipality from raising pet registration costs in 2014 due to a dispute between the incumbent at the time and a state representative.

“The dramatic way of stating the issue is the City cannot increase dog licensing fees without state legislature approval, and that held true previously, and it remains the case today,” the expert noted.

However, he and other experts point to tailwinds: Mamdani’s proposals are very popular and would address fundamental issues. Democrats now hold significant control in the legislature, and several identify economic and political pathways to making the plans reality.

In what ways could Mamdani finance his bold agenda? We broke it down by revenue source and proposal.

Generating Income

The Mamdani campaign projects it could raise about ten billion dollars by raising the business tax, taxes on the wealthy, and current government revenues.

Critics claim companies and the high-earners will relocate, but that is contradicted by credible research. Moreover, the business levy is on profits made in the region no matter where a company is based, making the point at least partially moot.

Business Levy Hike

Mamdani estimates a rise in state taxes between 7.25% and eleven point five percent on corporate profits would produce around five billion dollars, a large portion of which would be directed to New York City. The legislature and governor would have to approve the plan. Legislative leaders have in the past supported comparable ideas, but the governor opposes raising taxes.

Yet, the governor backs universal childcare, a very popular initiative because child services is commonly seen as cost-prohibitive, said an expert. It would be difficult for centrist lawmakers to “oppose passing a historical program”, he added. “No one says ‘We shouldn’t do anything to reduce childcare costs.’”

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

Raising Levies on the Wealthy

The proposal aims to raising $4bn with a 2% hike on those earning above $1m each year. Although it’s a municipal levy, the state legislature must authorize the rise, and the idea is typically resisted by centrist Democrats.

But there is a feasible route, the expert noted. Raising revenue on the rich is widely accepted and, similar to the business tax hike, allocating the funds to fund favored initiatives helps to sell in Albany.

Rent Freeze

In terms of cost, a rent freeze on regulated housing is the simplest to enforce – it’s nearly free. However, a freeze must be approved by the housing panel, and there might not exist sufficient backing on it before Mamdani fills it with his own appointments.

Fare-Free and Efficient Transit

The plan projects fare-free transit will require a minimum of seven hundred million dollars, which factors in an evasion rate of forty-eight percent. Observers suggest Mamdani could likely pay for the expense by streamlining or cutting additional services in the city’s $116bn city budget.

City-Owned Food Markets

A pilot program for five public food markets that would be established in neglected “food deserts” is projected at sixty million dollars and could additionally be paid for by shifting priorities in the one hundred sixteen billion dollar spending plan.

Building Low-Cost Homes Properties

Many commentators to the conservative side of Mamdani have dismissed the proposal to invest about $100bn developing two hundred thousand low-income homes over a decade, largely because it would require massive borrowing. The expert said those opposing this aspect mostly overlook that the initiative is does not involve to take on $100bn immediately – the debt would be accrued and repaid in tranches over multiple administrations.

He also stressed the plan does not call for no-cost homes, but affordable housing that would generate revenue to reduce loans. Moreover, the developments could in part be funded by private investment.

“That’s the way the proposal is feasible,” he concluded.

Universal Childcare

Establishing childcare access for all would cost between $2.5bn and $12bn by most estimates, depending 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 expected negotiated adjustments, as is typical with big proposals.

“The things that Mamdani promised will likely be scaled back,” the expert remarked. “And the governor’s stated resistance to revenue hikes may just confront practical limits – she probably can’t get the objectives she desires on the spending side without some flexibility on the tax side.”