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

However, turning the city more affordable for residents is an costly public undertaking, and many economists and politicians to Mamdani’s right say he faces too many hurdles to effectively follow through on his key proposals.

Further complicating the situation is the federal administration, which will likely withhold financial support for New York in an attempt to sabotage Mamdani and create budget holes that complicate efforts to pay for new priorities.

Additionally, New York City must secure state government approval to adjust many revenue streams. One expert cited the state assembly blocking the municipality from raising pet registration costs in a prior year due to a disagreement between the then mayor and a state representative.

“A striking example of stating the issue is New York City can’t raise dog licensing fees without state approval, and it was true then, and it remains the case today,” the expert noted.

However, analysts point to favorable conditions: Mamdani’s proposals are very popular and would address fundamental issues. Democrats now hold large majorities in the legislature, and some see economic and viable routes to implementing the plans reality.

How could Mamdani finance his ambitious program? Here’s a detailed look by funding method and proposal.

Raising Revenue

His team projects it could raise approximately $10bn by raising the corporate tax rate, levies on the affluent, and existing fee and tax collections.

Critics claim companies and the wealthy will relocate, but this is disputed by reliable studies. Moreover, the corporate tax is on profits made in the state no matter where a business is located, rendering the point at least partially moot.

Corporate Tax Increase

The mayor-elect calculates a rise in state taxes from 7.25% and 11.5% on business earnings would generate about five billion dollars, much of which would be funneled to New York City. The legislature and governor would have to authorize the proposal. Legislative leaders have previously backed comparable ideas, but the state executive is against increasing levies.

Yet, the state leader supports universal childcare, a highly favored proposal because child services is widely viewed as too expensive, said one policy director. It would be challenging for centrist lawmakers to “oppose enacting a landmark program”, he continued. “No one argues ‘Nothing should be done to make childcare cheaper.’”

What’s been lacking, he explained, has been a figure like Mamdani who says: “Yeah, it costs money, and we will increase revenue to make it happen.”

Raising Taxes on the Wealthy

The proposal aims to generating $4bn with a two percent increase on those making more than $1m annually. Though it’s a city tax, the state government must authorize the rise, and the proposal is typically opposed by centrist Democrats.

But there is a political pathway, he noted. Increasing taxes on the wealthy is widely accepted and, as with the corporate tax increase, allocating the proceeds to support favored initiatives makes it easier to sell in Albany.

Halt on Rent Increases

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 approved by the housing panel, and there may not be enough support on it before Mamdani fills it with his preferred candidates.

Free and Fast Buses

The plan projects fare-free transit will cost a minimum of seven hundred million dollars, which factors in an fare-dodging percentage of 48%. Analysts suggest Mamdani could likely pay for the expense by streamlining or reducing other programs in the city’s $116bn city budget.

Publicly Run Grocery Stores

A pilot program for five city-owned grocery stores that would be established in neglected “food deserts” is projected at sixty million dollars and could additionally be paid for by shifting focus in the $116bn budget.

Constructing Affordable Housing Properties

Numerous commentators to the conservative side of Mamdani have written off the proposal to spend about one hundred billion dollars developing two hundred thousand low-income homes over 10 years, largely because it would necessitate massive debt. The expert clarified those opposing this point largely miss that the initiative is not to borrow $100bn immediately – the debt would be accumulated and paid down in phases over several government terms.

He also stressed the proposal is not for free housing, but cost-effective residences that would produce income to pay down loans. Moreover, the developments could partially be funded by private investment.

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

Universal Childcare

Establishing universal childcare would cost from two point five billion dollars and $12bn by most estimates, depending on whether it is a municipal or state initiative and additional variables. Funding is the big question mark – will the business and high-earner levies be approved in the state capital? An expert said he expected negotiated adjustments, as is typical with big proposals.

“The things that Mamdani promised will likely be scaled back,” the expert remarked. “Furthermore the state leader’s stated resistance to tax increases may just confront practical limits – she likely cannot achieve the objectives she wants on the spending side without compromise on the revenue side.”