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Ambitious promises to transform the city more affordable for New Yorkers catapulted democratic socialist Zohran Mamdani to his unlikely win on election day. Included are free buses, childcare for all, and a large-scale increase in low-cost housing.

However, making the city more affordable for inhabitants is an expensive public undertaking, and many financial experts and elected officials to Mamdani’s conservative side say he confronts numerous obstacles to effectively follow through on his signature ideas.

Adding complexity to matters is the national government, which will almost certainly pull funding for New York in an effort to sabotage Mamdani and open up budget holes that make it more difficult to fund new priorities.

Additionally, the city must secure state legislature approval to adjust many income sources. One expert pointed to the state assembly stopping the city from increasing pet registration costs in 2014 due to a disagreement between the incumbent at the time and a lawmaker.

“The dramatic way of stating the issue is New York City cannot increase pet permit charges without state legislature approval, and it was true then, and it remains the case today,” he noted.

However, analysts highlight favorable conditions: Mamdani’s proposals are widely supported and would address fundamental issues. Democrats now have significant control in the state government, and some identify financial and political pathways to implementing the proposals a success.

How might Mamdani pay for his bold agenda? Here’s a detailed look by funding method and proposal.

Raising Revenue

His team projects it could raise approximately $10bn by increasing the corporate tax rate, levies on the wealthy, and current government revenues.

Detractors say businesses and the high-earners will relocate, but that is disputed by reliable studies. Additionally, the corporate tax is on earnings made in the state regardless of where a company is based, making the argument largely irrelevant.

Corporate Tax Increase

Mamdani calculates a rise in state taxes between 7.25% and eleven point five percent on corporate profits would produce about five billion dollars, much of which would be directed to New York City. The legislature and governor would have to approve the proposal. State lawmakers have previously backed comparable ideas, but the governor is against increasing levies.

Yet, the governor backs childcare for all, a highly favored initiative because childcare is commonly seen as cost-prohibitive, said one policy director. It would be difficult for moderate Democrats to “oppose passing a landmark program”, he added. “No one says ‘Nothing should be done to reduce childcare costs.’”

What’s been lacking, the expert said, has been a figure like Mamdani who declares: “Yeah, it requires funding, and we will raise taxes to get it done.”

Increasing Taxes on the Affluent

The proposal aims to generating four billion dollars with a 2% increase on those making above $1m each year. Although it’s a city tax, the state legislature must approve the rise, and the proposal is typically opposed by centrist lawmakers.

But there is a feasible route, he said. Increasing revenue on the rich is broadly popular and, as with the corporate tax increase, allocating the proceeds to support popular programs helps to promote in Albany.

Rent Freeze

In terms of cost, a pause on rent hikes on rent-controlled apartments is the easiest to implement – it’s nearly free. But, a freeze must be authorized by the rent guidelines board, and there may not be enough support on it until Mamdani appoints members with his preferred candidates.

Free and Fast Transit

Mamdani projects fare-free transit will require at least $700m, which factors in an fare-dodging percentage of forty-eight percent. Observers suggest Mamdani could probably pay for the cost by optimizing or reducing additional services in the city’s $116bn annual spending plan.

City-Owned Grocery Stores

A trial initiative for five city-owned grocery stores that would be built in underserved “food deserts” is projected at $60m and could also be paid for by shifting focus in the one hundred sixteen billion dollar spending plan.

Building Affordable Housing Units

Many people to the right of Mamdani have dismissed the plan to invest about $100bn building two hundred thousand low-income homes over a decade, largely because it would require substantial borrowing. The expert clarified those opposing this point mostly overlook that the plan is not to borrow $100bn at once – the debt would be accrued and repaid in phases over several government terms.

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

“That’s the way the plan adds up,” the expert concluded.

Universal Childcare

Establishing universal childcare would require between two point five billion dollars and $12bn by most estimates, based on whether it is a city or state program and other factors. Funding is the major uncertainty – will the corporate and wealth taxes pass Albany? An expert commented he expected negotiated adjustments, as is typical with big proposals.

“The things that Mamdani promised will likely be scaled back,” he remarked. “And the state leader’s stated resistance to revenue hikes could confront practical limits – she likely cannot achieve the things she wants on the expenditure front without compromise on the tax side.”