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Ambitious promises to transform the city less expensive for New Yorkers propelled progressive candidate Zohran Mamdani to his surprising win on election day. Included are free buses, childcare for all, and a large-scale expansion in affordable homes.

However, turning the city more affordable for inhabitants is an costly government task, and numerous financial experts and elected officials to Mamdani’s conservative side argue he faces too many hurdles to meaningfully deliver on his key proposals.

Adding complexity to the situation is the national government, which will likely pull funding for New York in an effort to undermine Mamdani and open up budget holes that make it more difficult to pay for new priorities.

Additionally, the city must secure state government approval to adjust several income sources. An analyst pointed to the state legislature blocking the city from raising dog licensing fees in 2014 due to a disagreement between the incumbent at the time and a lawmaker.

“The dramatic example of stating the issue is New York City cannot increase 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 ideas are widely supported and would address basic problems. The Democratic party now hold large majorities in the state government, and some identify financial and viable routes to making the proposals reality.

How could Mamdani finance his ambitious program? We broke it down by funding method and proposal.

Raising Income

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

Critics claim businesses and the high-earners will relocate, but that is disputed by credible research. Moreover, the business levy is on profits made in the state no matter where a business is based, rendering the point at least partially moot.

Corporate Tax Increase

Mamdani estimates a rise in state taxes between 7.25% and 11.5% on business earnings would generate about five billion dollars, much of which would be directed to New York City. State leaders would have to authorize the proposal. Legislative leaders have previously supported similar proposals, but the state executive is against increasing levies.

Yet, the governor backs universal childcare, a very popular initiative because child services is commonly seen as too expensive, stated one policy director. It would be difficult for moderate Democrats to “oppose enacting a landmark initiative”, he added. “Nobody argues ‘We shouldn’t do anything to reduce childcare costs.’”

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

Raising Levies on the Affluent

Mamdani’s plan aims to generating $4bn with a 2% hike on those earning more than one million dollars annually. Though it’s a municipal levy, the state government must approve the rise, and the idea is typically opposed by centrist lawmakers.

But there is a feasible route, the expert noted. Increasing revenue on the wealthy is broadly popular and, similar to the corporate tax increase, using the funds to fund popular programs makes it easier to promote in Albany.

Halt on Rent Increases

Regarding cost, a pause on rent hikes on regulated housing is the simplest to implement – it’s minimally costly. However, a halt must be authorized by the rent guidelines board, and there might not exist sufficient backing on it until Mamdani fills it with his preferred candidates.

Fare-Free and Efficient Transit

Mamdani projects fare-free transit will cost at least $700m, which factors in an evasion rate of forty-eight percent. Observers say Mamdani could probably cover the cost by optimizing or cutting other programs in the city’s $116bn city budget.

City-Owned Food Markets

A trial initiative for several city-owned grocery stores that would be established in underserved “areas lacking food access” is estimated at $60m and could also be paid for by shifting focus in the one hundred sixteen billion dollar budget.

Constructing Affordable Housing Properties

Many commentators to the right of Mamdani have dismissed the proposal to invest about $100bn building two hundred thousand low-income homes over 10 years, mainly because it would require substantial debt. The expert said those opposing this aspect mostly overlook that the plan is does not involve to take on $100bn at once – the liability would be accrued and repaid in tranches over several government terms.

He emphasized the proposal is not for free housing, but affordable housing that would generate revenue to reduce loans. Furthermore, the projects could partially be privately financed.

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

Childcare for All

Implementing universal childcare would require from $2.5bn and twelve billion dollars by many projections, based on whether it is a city or state program and other factors. Funding is the major uncertainty – will the business and high-earner levies pass Albany? An expert said he anticipated negotiated adjustments, as is typical with big proposals.

“Proposals that Mamdani promised will probably get a haircut,” he remarked. “Furthermore the governor’s expressed opposition to tax increases may just confront practical limits – she likely cannot achieve the things she wants on the spending side without some flexibility on the tax side.”