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Bold promises to make the metropolis less expensive for New Yorkers propelled progressive candidate Zohran Mamdani to his unlikely win on election day. Included are free buses, universal childcare, and a massive expansion in affordable homes.

However, making the city more affordable for residents is an expensive government task, and numerous economists and politicians to Mamdani’s right say he confronts numerous obstacles to effectively follow through on his key proposals.

Adding complexity to matters is the federal administration, which will likely withhold financial support for New York in an attempt to undermine Mamdani and create budget holes that make it more difficult to pay for fresh initiatives.

Additionally, the city must secure state government authorization to adjust several revenue streams. An analyst cited the state legislature blocking the municipality from increasing dog licensing fees in 2014 due to a disagreement between the incumbent at the time and a lawmaker.

“A striking way of stating the issue is New York City cannot increase pet permit charges without state approval, and that held true previously, and it remains the case today,” he said.

However, analysts point to tailwinds: Mamdani’s ideas are very popular and would address basic problems. The Democratic party now have significant control in the legislature, and several identify financial and political pathways to implementing the proposals a success.

How might Mamdani pay for his bold program? Here’s a detailed look by revenue source and proposal.

Generating Revenue

His team estimates it could generate approximately $10bn by raising the corporate tax rate, taxes on the affluent, and existing fee and tax collections.

Detractors claim businesses and the wealthy will relocate, but this is disputed by credible research. Additionally, the business levy is on profits made in the region regardless of where a business is located, making the argument largely irrelevant.

Corporate Tax Hike

The mayor-elect calculates a rise in state taxes from 7.25% and 11.5% on business earnings would produce around $5bn, much of which would be directed to New York City. The legislature and governor would have to approve the proposal. Legislative leaders have in the past backed comparable ideas, but the state executive opposes increasing levies.

Yet, the governor backs childcare for all, a very popular proposal because childcare is widely viewed as too expensive, stated an expert. It would be challenging for centrist lawmakers to “oppose enacting a historical initiative”, he continued. “No one argues ‘Nothing should be done to make childcare cheaper.’”

The missing element, the expert explained, has been a figure like Mamdani who says: “Yes, it costs money, and we will increase revenue to make it happen.”

Increasing Taxes on the Wealthy

Mamdani’s plan aims to generating $4bn with a two percent increase on those making more than one million dollars each year. Although it’s a municipal levy, the state legislature must authorize the increase, and the proposal is typically resisted by centrist Democrats.

But there is a political pathway, the expert noted. Increasing taxes on the rich is broadly popular and, similar to the business tax hike, using the funds to fund favored initiatives helps to sell in the state capital.

Rent Freeze

In terms of expense, a pause on rent hikes on regulated housing is the easiest to enforce – it’s minimally costly. However, a halt must be approved by the rent guidelines board, and there may not be sufficient backing on it before Mamdani fills it with his preferred candidates.

Free and Fast Transit

Mamdani projects fare-free transit will require a minimum of $700m, which includes an evasion rate of 48%. Observers suggest Mamdani could probably pay for the cost by streamlining or cutting additional services in the municipal $116bn city budget.

City-Owned Food Markets

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

Building Low-Cost Homes Properties

Many people to the right of Mamdani have written off the proposal to invest about one hundred billion dollars building two hundred thousand low-income homes over a decade, mainly because it would require massive debt. He said those arguing against this aspect largely overlook that the initiative is not to take on $100bn immediately – the debt would be accumulated and paid down in phases over multiple administrations.

He also stressed the proposal does not call for free housing, but cost-effective residences that would produce income to reduce loans. Furthermore, the developments could in part be funded by private investment.

“This is how the plan adds up,” he said.

Universal Childcare

Establishing universal childcare would cost between two point five billion dollars and twelve billion dollars 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 pass the state capital? One analyst said he expected negotiated adjustments, as is typical with big proposals.

“The things that Mamdani promised will probably get a haircut,” the expert said. “Furthermore the state leader’s expressed resistance to tax increases could confront practical limits – she probably can’t get the objectives she desires on the expenditure front without some flexibility on the tax side.”