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Bold promises to transform the city more affordable for residents catapulted progressive candidate Zohran Mamdani to his surprising win on Tuesday. Among them are fare-free transit, childcare for all, and a massive increase in low-cost housing.

However, turning the city more affordable for inhabitants is an expensive government task, and many economists and politicians to Mamdani’s conservative side say he faces too many hurdles to effectively follow through on his signature ideas.

Adding complexity to matters is the national government, which will almost certainly withhold financial support for New York in an effort to sabotage Mamdani and create budget holes that complicate efforts to pay for fresh initiatives.

Additionally, New York City must secure state legislature authorization to modify several income sources. One expert pointed to the state assembly stopping the city from raising dog licensing fees in 2014 due to a disagreement between the incumbent at the time and a state representative.

“The dramatic way of putting it is the City can’t raise dog licensing fees without state approval, and it was true then, and it’s true now,” he said.

However, analysts highlight favorable conditions: Mamdani’s proposals are widely supported and would address fundamental issues. Democrats now have large majorities in the state government, and some see economic and viable routes to implementing the plans reality.

How might Mamdani pay for his ambitious program? We broke it down by revenue source and initiative.

Generating Revenue

The Mamdani campaign projects it could raise about $10bn by raising the corporate tax rate, taxes on the affluent, and current government revenues.

Detractors say companies and the high-earners will move away, but this is disputed by reliable studies. Additionally, the corporate tax is on earnings made in the state no matter where a business is based, making the argument at least partially moot.

Business Levy Hike

Mamdani calculates a rise in state taxes from 7.25% and eleven point five percent on business earnings would generate about $5bn, much of which would be funneled to the city. State leaders would have to approve the proposal. State lawmakers have in the past backed similar proposals, but the governor opposes increasing levies.

Yet, the governor supports childcare for all, a very popular proposal because childcare is widely viewed as cost-prohibitive, said an expert. It would be challenging for moderate Democrats to “oppose enacting a historical initiative”, he continued. “Nobody argues ‘Nothing should be done to reduce childcare costs.’”

The missing element, the expert explained, has been a leader like Mamdani who says: “Yeah, it costs money, and we will raise taxes to get it done.”

Increasing Levies on the Affluent

Mamdani’s plan calls for generating four billion dollars with a 2% hike on those making more than one million dollars annually. Though it’s a city tax, the state government must authorize the rise, and the proposal is generally resisted by centrist Democrats.

However there is a feasible route, the expert said. Increasing revenue on the wealthy is broadly popular and, similar to the business tax hike, using the funds to support favored initiatives makes it easier to sell in Albany.

Halt on Rent Increases

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

Fare-Free and Efficient Buses

Mamdani projects free buses will require a minimum of seven hundred million dollars, which includes an fare-dodging percentage of forty-eight percent. Analysts say Mamdani could probably cover the expense by streamlining or reducing other programs in the city’s $116bn annual spending plan.

Publicly Run Grocery Stores

A trial initiative for five public food markets that would be established in neglected “areas lacking food access” is projected at $60m and could additionally be paid for by shifting focus in the $116bn spending plan.

Building Low-Cost Homes Units

Many commentators to the right of Mamdani have dismissed the plan to spend approximately one hundred billion dollars building two hundred thousand affordable units over a decade, largely because it would require substantial borrowing. The expert said those opposing this point largely overlook that the initiative is does not involve to take on $100bn immediately – the liability would be accrued and paid down in phases over multiple administrations.

He also stressed the plan does not call for free housing, but affordable housing that would produce income to pay down loans. Furthermore, the projects could partially be funded by private investment.

“This is how the plan is feasible,” the expert concluded.

Universal Childcare

Implementing childcare access for all would cost from $2.5bn and twelve billion dollars by many projections, based on whether it is a municipal or state initiative and other factors. Funding is the major uncertainty – will the corporate and wealth taxes pass Albany? An expert commented he anticipated negotiated adjustments, as is typical with big proposals.

“The things that Mamdani pledged will probably get a haircut,” the expert said. “Furthermore the governor’s stated opposition to revenue hikes may just face reality – she probably can’t get the things she desires on the spending side without some flexibility on the revenue side.”