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Bold promises to make the metropolis more affordable for residents propelled democratic socialist Zohran Mamdani to his unlikely win on Tuesday. Among them are fare-free transit, childcare for all, and a large-scale expansion in low-cost housing.

However, turning the urban center more affordable for residents is an expensive government task, and numerous economists and elected officials to Mamdani’s right argue he faces too many hurdles to meaningfully deliver on his key proposals.

Adding complexity to matters is the federal administration, which will likely pull funding for New York in an attempt to undermine Mamdani and open up funding gaps that make it more difficult to fund new priorities.

Additionally, New York City must secure state government authorization to modify several revenue streams. An analyst cited the state legislature blocking the city from increasing pet registration costs in 2014 due to a disagreement between the incumbent at the time and a state representative.

“A striking example of stating the issue is the City cannot increase dog licensing fees without state approval, and it was true then, and it remains the case today,” he said.

However, analysts highlight favorable conditions: Mamdani’s ideas are very popular and would solve basic problems. The Democratic party now hold large majorities in the legislature, and several see financial and political pathways to making the plans a success.

In what ways could Mamdani finance his ambitious agenda? We broke it down by revenue source and initiative.

Raising Revenue

His team projects it could generate approximately $10bn by raising the business tax, taxes on the affluent, and current government revenues.

Critics say companies and the wealthy will relocate, but that is disputed by reliable studies. Additionally, the corporate tax is on earnings made in the region no matter where a company is located, rendering the point largely irrelevant.

Corporate Tax Hike

Mamdani calculates a rise in state taxes from seven point two five percent and eleven point five percent on corporate profits would produce about $5bn, much of which would be directed to the city. The legislature and governor would have to authorize the plan. State lawmakers have in the past supported comparable ideas, but the state executive is against increasing levies.

Yet, the governor supports universal childcare, a highly favored proposal because childcare is widely viewed as too expensive, said one policy director. It would be challenging for centrist lawmakers to “oppose enacting a landmark initiative”, he continued. “No one says ‘We shouldn’t do anything to reduce childcare costs.’”

What’s been lacking, the expert explained, has been a leader like Mamdani who says: “Yeah, it requires funding, and we will increase revenue to make it happen.”

Raising Taxes on the Wealthy

Mamdani’s plan calls for raising $4bn with a 2% increase on those making above one million dollars each year. Though it’s a municipal levy, the state government must approve the increase, and the proposal is typically opposed by moderate Democrats.

But there is a political pathway, he said. Raising taxes on the wealthy is widely accepted and, similar to the business tax hike, allocating the proceeds to support favored initiatives helps to sell in the state capital.

Rent Freeze

In terms of cost, a rent freeze on rent-controlled apartments is the easiest to implement – it’s minimally costly. However, a freeze must be authorized by the rent guidelines board, and there might not exist enough support on it before Mamdani fills it with his own appointments.

Fare-Free and Efficient Buses

The plan estimates fare-free transit will cost a minimum of $700m, which factors in an fare-dodging percentage of forty-eight percent. Observers say Mamdani could likely cover the expense by optimizing or reducing other programs in the city’s one hundred sixteen billion dollar annual spending plan.

Publicly Run Grocery Stores

A trial initiative for five city-owned grocery stores that would be established in underserved “food deserts” is projected at $60m and could also be paid for by shifting priorities in the $116bn spending plan.

Building Low-Cost Homes Properties

Many commentators to the conservative side of Mamdani have written off the plan to spend approximately $100bn building 200,000 low-income homes over a decade, mainly because it would require massive borrowing. The expert said those arguing against this point largely miss that the initiative is not to take on $100bn at once – the liability would be accrued and repaid in phases over several government terms.

He also stressed the plan is not for no-cost homes, but cost-effective residences that would generate revenue to reduce debt. Furthermore, the projects could partially be funded by private investment.

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

Childcare for All

Establishing universal childcare would require between $2.5bn and twelve billion dollars by most estimates, depending on whether it is a municipal or state initiative and other factors. Funding is the major uncertainty – can the business and high-earner levies pass Albany? One analyst said he anticipated some compromise, as is typical with large-scale plans.

“The things that Mamdani pledged will probably get a haircut,” the expert said. “And the governor’s stated resistance to revenue hikes may just confront practical limits – she probably can’t get the objectives she desires on the expenditure front without some flexibility on the tax side.”