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Bold pledges to make the metropolis more affordable for residents catapulted progressive candidate Zohran Mamdani to his unlikely win on Tuesday. Among them are free buses, universal childcare, and a massive expansion in low-cost housing.

However, turning the city cost-effective for inhabitants is an expensive public undertaking, and many economists and elected officials to Mamdani’s right say he faces numerous obstacles to effectively follow through on his key proposals.

Adding complexity to the situation is the federal administration, which will likely pull funding for the city in an attempt to sabotage Mamdani and create budget holes that complicate efforts to pay for new priorities.

Additionally, the city must get state government authorization to adjust several income sources. An analyst pointed to the state assembly stopping the city from raising dog licensing fees in 2014 due to a dispute between the incumbent at the time and a state representative.

“A striking example of putting it is New York City can’t raise dog licensing fees without state legislature approval, and that held true previously, and it remains the case today,” the expert noted.

Nonetheless, analysts point to tailwinds: Mamdani’s proposals are widely supported and would solve fundamental issues. The Democratic party now have large majorities in the legislature, and several identify financial and political pathways to implementing the proposals a success.

In what ways might Mamdani pay for his ambitious agenda? Here’s a detailed look by funding method and initiative.

Generating Income

The Mamdani campaign estimates it could raise about $10bn by increasing the corporate tax rate, levies on the affluent, and existing fee and tax collections.

Critics say companies and the wealthy will relocate, but this is disputed by credible research. Additionally, the corporate tax is on earnings made in the region no matter where a company is based, rendering the point at least partially moot.

Business Levy Increase

Mamdani estimates a state tax increase from seven point two five percent and eleven point five percent on business earnings would produce about $5bn, a large portion of which would be directed to New York City. The legislature and governor would have to approve the proposal. Legislative leaders have in the past backed comparable ideas, but the state executive opposes raising taxes.

However, the governor supports childcare for all, a highly favored proposal because child services is commonly seen as cost-prohibitive, stated one policy director. It would be difficult for centrist lawmakers to “resist passing a landmark program”, he added. “Nobody says ‘Nothing should be done to reduce childcare costs.’”

What’s been lacking, he explained, has been a leader like Mamdani who declares: “Yes, it requires funding, and we’re gonna increase revenue to make it happen.”

Raising Levies on the Wealthy

The proposal aims to raising $4bn with a two percent increase on those making more than one million dollars annually. Though it’s a city tax, the state legislature must authorize the increase, and the idea is typically resisted by centrist lawmakers.

However there is a political pathway, he noted. Raising revenue on the wealthy is widely accepted and, similar to the business tax hike, using the funds to fund popular programs makes it easier to promote in Albany.

Halt on Rent Increases

In terms of cost, a pause on rent hikes on regulated housing is the easiest to implement – 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

Mamdani projects fare-free transit will cost a minimum of seven hundred million dollars, which includes an fare-dodging percentage of 48%. Observers say Mamdani could probably pay for the expense by streamlining or reducing additional services in the municipal one hundred sixteen billion dollar city budget.

Publicly Run Grocery Stores

A pilot program for several city-owned grocery stores that would be built in underserved “food deserts” is projected at sixty million dollars and could also be funded by adjusting priorities in the $116bn spending plan.

Constructing Low-Cost Homes Properties

Many commentators to the conservative side of Mamdani have written off the proposal to spend about $100bn building 200,000 affordable units over 10 years, largely because it would necessitate substantial borrowing. The expert said those arguing against this aspect largely overlook that the plan is not to take on $100bn at once – the liability would be accrued and repaid in phases over multiple administrations.

He emphasized the proposal is not for free housing, but cost-effective residences that would produce income to reduce loans. Furthermore, the projects could partially be funded by private investment.

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

Childcare for All

Establishing universal childcare would cost between two point five billion dollars and twelve billion dollars by many projections, based on whether it is a city or state program and additional variables. Financing is the big question mark – can the corporate and wealth taxes be approved in the state capital? An expert said he expected some compromise, as often happens with big proposals.

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