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Bold promises to transform the metropolis more affordable for New Yorkers catapulted progressive candidate Zohran Mamdani to his unlikely victory on election day. Among them are fare-free transit, childcare for all, and a large-scale expansion in affordable homes.

However, making the urban center cost-effective for residents is an costly government task, and many financial experts and politicians to Mamdani’s right argue he faces numerous hurdles to meaningfully deliver on his key proposals.

Adding complexity to matters is the federal administration, which will likely withhold financial support for the city in an attempt to sabotage Mamdani and open up budget holes that complicate efforts to fund new priorities.

Additionally, New York City must secure state government approval to adjust several income sources. An analyst pointed to the state assembly stopping the municipality from increasing dog licensing fees in a prior year due to a dispute between the incumbent at the time and a state representative.

“A striking way of putting it is New York City cannot increase dog licensing fees without state legislature approval, and it was true then, and it remains the case today,” he said.

Nonetheless, analysts highlight favorable conditions: Mamdani’s proposals are widely supported and would solve basic problems. Democrats now have large majorities in the legislature, and several identify economic and political pathways to making the plans a success.

How might Mamdani finance his ambitious agenda? Here’s a detailed look by revenue source and proposal.

Generating Revenue

His team projects it could generate about ten billion dollars by raising the corporate tax rate, levies on the wealthy, and current government revenues.

Critics claim businesses and the wealthy will move away, but this is disputed by credible research. Additionally, the corporate tax is on earnings made in the state no matter where a business is based, rendering the argument largely moot.

Business Levy Hike

Mamdani calculates a state tax increase 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. State lawmakers have previously supported comparable ideas, but the state executive opposes increasing levies.

Yet, the governor backs universal childcare, a highly favored initiative because child services is commonly seen as cost-prohibitive, stated an expert. It would be difficult for moderate Democrats to “resist passing a landmark program”, he continued. “No one argues ‘We shouldn’t do anything to reduce childcare costs.’”

The missing element, he said, has been a leader like Mamdani who declares: “Yeah, it costs money, and we will raise taxes to make it happen.”

Raising Levies on the Affluent

The proposal calls for generating $4bn with a 2% hike on those making above $1m each year. Although it’s a city tax, the state government must approve the rise, and the proposal is typically opposed by moderate lawmakers.

But there is a political pathway, the expert noted. Raising revenue on the rich is widely accepted and, similar to the corporate tax increase, using the proceeds to fund popular programs makes it easier to promote in Albany.

Rent Freeze

In terms of expense, a rent freeze on rent-controlled apartments is the simplest to implement – it’s nearly free. However, a freeze must be approved by the rent guidelines board, and there may not be enough support on it before Mamdani appoints members with his own appointments.

Fare-Free and Efficient Buses

Mamdani projects free buses will require a minimum of $700m, which factors in an evasion rate of 48%. Analysts say Mamdani could probably pay for the cost by optimizing or reducing additional services in the municipal $116bn annual spending plan.

City-Owned Grocery Stores

A trial initiative for several public food markets that would be established in neglected “food deserts” is estimated at $60m and could additionally be paid for by adjusting priorities in the one hundred sixteen billion dollar budget.

Constructing Affordable Housing Properties

Many people to the right of Mamdani have written off the plan to invest about one hundred billion dollars building 200,000 low-income homes over 10 years, largely because it would necessitate massive debt. The expert said those opposing this aspect mostly overlook that the plan is not to take on one hundred billion dollars immediately – the debt would be accrued and paid down in phases over multiple administrations.

He emphasized the proposal does not call for free housing, but affordable housing that would produce income to pay down debt. Furthermore, the projects could partially be privately financed.

“This is how the plan is feasible,” the expert said.

Childcare for All

Implementing childcare access for all would cost between two point five billion dollars and twelve billion dollars by most estimates, depending on whether it is a city or state program and additional variables. Financing is the major uncertainty – will the corporate and wealth taxes be approved in the state capital? One analyst said he expected some compromise, as often happens with big proposals.

“The things that Mamdani pledged will likely get a haircut,” he said. “And the state leader’s expressed opposition to tax increases could face reality – she probably cannot achieve the things she desires on the spending side without some flexibility on the revenue side.”