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Bold promises to make the city more affordable for New Yorkers propelled democratic socialist Zohran Mamdani to his unlikely victory on Tuesday. Included are free buses, universal childcare, and a large-scale increase in affordable homes.

However, making the urban center cost-effective for residents is an expensive government task, and numerous economists and politicians to Mamdani’s right say he confronts too many hurdles to meaningfully deliver on his signature ideas.

Further complicating matters is the national government, which will likely withhold financial support for the city in an effort to undermine Mamdani and open up funding gaps that complicate efforts to pay for new priorities.

Additionally, New York City must get state government authorization to modify many income sources. An analyst pointed to the state assembly stopping the municipality from raising dog licensing fees in 2014 due to a disagreement between the incumbent at the time and a state representative.

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

Nonetheless, he and other experts point to tailwinds: Mamdani’s ideas are very popular and would address basic problems. The Democratic party now hold large majorities in the legislature, and some identify economic and political pathways to implementing the proposals reality.

In what ways could Mamdani finance his bold program? We broke it down by funding method and initiative.

Generating Revenue

The Mamdani campaign projects it could raise approximately $10bn by increasing the business tax, taxes on the wealthy, and current government revenues.

Detractors claim companies and the high-earners will relocate, but this is contradicted by reliable studies. Moreover, the corporate tax is on profits made in the state no matter where a company is located, making the argument largely irrelevant.

Corporate Tax Hike

The mayor-elect calculates a rise in state taxes between seven point two five percent and eleven point five percent on business earnings would generate about five billion dollars, much of which would be directed to the city. The legislature and governor would have to approve the plan. Legislative leaders have previously backed comparable ideas, but the state executive is against increasing levies.

However, the governor supports universal childcare, a very popular proposal because childcare is commonly seen as too expensive, said an expert. It would be challenging for centrist lawmakers to “resist passing a historical program”, he added. “Nobody says ‘We shouldn’t do anything to reduce childcare costs.’”

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

Raising Levies on the Wealthy

Mamdani’s plan calls for raising four billion dollars with a 2% hike on those earning more than $1m each year. Though it’s a city tax, the state legislature must authorize the increase, and the proposal is typically resisted by centrist Democrats.

But there is a political pathway, he noted. Increasing taxes on the wealthy is broadly popular and, similar to the corporate tax increase, allocating the proceeds to fund popular programs makes it easier to sell in the state capital.

Halt on Rent Increases

Regarding cost, a rent freeze on regulated housing is the easiest to enforce – it’s nearly free. However, a halt must be authorized by the rent guidelines board, and there might not exist enough support on it until Mamdani appoints members with his preferred candidates.

Free and Fast Transit

Mamdani estimates fare-free transit will require at least $700m, which includes an evasion rate of 48%. Observers suggest Mamdani could probably cover the expense by optimizing or reducing other programs in the city’s $116bn city budget.

City-Owned Grocery Stores

A trial initiative for five city-owned grocery stores that would be established in underserved “areas lacking food access” is estimated at $60m and could also be funded by adjusting priorities in the $116bn budget.

Constructing Low-Cost Homes Properties

Numerous commentators to the conservative side of Mamdani have dismissed the plan to invest approximately one hundred billion dollars developing 200,000 affordable units over 10 years, largely because it would necessitate massive debt. The expert clarified those opposing this point mostly miss that the initiative is not to borrow one hundred billion dollars immediately – the liability would be accumulated and repaid in phases over several government terms.

He emphasized the plan does not call for free housing, but cost-effective residences that would produce income to pay down debt. Moreover, the developments could in part be privately financed.

“This is how the proposal is feasible,” he said.

Childcare for All

Establishing childcare access for all would require between two point five billion dollars and $12bn by most estimates, based on whether it is a municipal or state initiative and other factors. Funding is the major uncertainty – can the business and high-earner levies be approved in Albany? One analyst said he anticipated some compromise, as is typical with large-scale plans.

“The things that Mamdani promised will likely get a haircut,” he said. “And the state leader’s stated resistance to revenue hikes may just face reality – she likely can’t get the things she desires on the spending side without compromise on the revenue side.”