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Ambitious pledges to transform the city more affordable for residents catapulted progressive candidate Zohran Mamdani to his surprising victory on Tuesday. Included are fare-free transit, childcare for all, and a massive expansion in low-cost housing.

However, making the city more affordable for residents is an expensive government task, and many economists and elected officials to Mamdani’s conservative side argue he faces numerous obstacles to effectively follow through on his key proposals.

Adding complexity to the situation is the national government, which will almost certainly pull funding for the city in an attempt to sabotage Mamdani and open up budget holes that complicate efforts to fund new priorities.

Additionally, New York City must secure state legislature authorization to modify many revenue streams. An analyst pointed to the state legislature stopping the city from increasing dog licensing fees in 2014 due to a dispute between the then mayor and a state representative.

“A striking way of putting it is the City can’t raise pet permit charges without state approval, and it was true then, and it remains the case today,” he noted.

However, analysts point to favorable conditions: Mamdani’s ideas are widely supported and would solve basic problems. The Democratic party now hold significant control in the state government, and some identify economic and viable routes to making the proposals a success.

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

Raising Income

The Mamdani campaign estimates it could generate about ten billion dollars by increasing the business tax, taxes on the wealthy, and current government revenues.

Critics say businesses and the wealthy will relocate, but this is disputed by credible research. Moreover, the corporate tax is on profits made in the region no matter where a company is located, rendering the point largely irrelevant.

Corporate Tax Increase

The mayor-elect estimates a state tax increase from seven point two five percent and eleven point five percent on corporate profits would produce around five billion dollars, much of which would be funneled to New York City. State leaders would have to authorize the plan. State lawmakers have in the past backed similar proposals, but the state executive is against increasing levies.

Yet, the governor backs universal childcare, a very popular proposal because child services is widely viewed as cost-prohibitive, said one policy director. It would be challenging for moderate Democrats to “oppose passing a landmark program”, he continued. “No one says ‘Nothing should be done to make childcare cheaper.’”

The missing element, the expert said, has been a figure like Mamdani who declares: “Yes, it costs money, and we will increase revenue to make it happen.”

Raising Levies on the Affluent

The proposal aims to raising four billion dollars with a 2% increase on those making above one million dollars each year. Although it’s a city tax, the state government must approve the increase, and the idea is typically opposed by moderate Democrats.

However there is a feasible route, the expert said. Raising revenue on the wealthy is widely accepted and, as with the corporate tax increase, allocating the proceeds to fund favored initiatives helps to promote in the state capital.

Halt on Rent Increases

Regarding expense, a rent freeze on regulated housing is the easiest to implement – it’s minimally costly. But, a freeze must be authorized by the rent guidelines board, and there may not be sufficient backing on it before Mamdani appoints members with his preferred candidates.

Free and Fast Buses

The plan estimates free buses will require at least seven hundred million dollars, which factors in an evasion rate of forty-eight percent. Analysts suggest Mamdani could likely cover the expense by streamlining or reducing other programs in the municipal $116bn annual spending plan.

Publicly Run Grocery Stores

A pilot program for five city-owned grocery stores that would be built in underserved “areas lacking food access” is projected at sixty million dollars and could additionally be paid for by shifting priorities in the one hundred sixteen billion dollar spending plan.

Constructing Low-Cost Homes Properties

Many commentators to the right of Mamdani have dismissed the plan to spend approximately $100bn developing two hundred thousand affordable units over a decade, mainly because it would require massive debt. He said those opposing this aspect largely miss that the initiative is not to borrow $100bn at once – the debt would be accrued and repaid in phases over several government terms.

He emphasized the plan does not call for no-cost homes, but cost-effective residences that would generate revenue to pay down debt. Moreover, the projects could partially be funded by private investment.

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

Childcare for All

Establishing childcare access for all would require between $2.5bn and $12bn by many projections, depending on whether it is a municipal or state initiative and additional variables. Financing is the big question mark – can the business and high-earner levies pass Albany? One analyst said he expected some compromise, as often happens with large-scale plans.

“The things that Mamdani promised will likely get a haircut,” the expert said. “And the governor’s stated resistance to tax increases may just face reality – she likely can’t get the things she wants on the expenditure front without some flexibility on the revenue side.”