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

However, making the urban center more affordable for inhabitants is an expensive government task, and numerous financial experts and elected officials to Mamdani’s conservative side say he faces numerous hurdles to effectively follow through on his signature ideas.

Further complicating matters is the national government, which will almost certainly pull funding for New York in an attempt to sabotage Mamdani and open up funding gaps that make it more difficult to pay for new priorities.

Additionally, New York City must get state government approval to adjust several income sources. One expert cited the state assembly blocking the municipality from raising dog licensing fees in 2014 due to a disagreement between the incumbent at the time and a state representative.

“A striking way of stating the issue is New York City cannot increase dog licensing fees without state legislature approval, and that held true previously, and it remains the case today,” the expert noted.

However, he and other experts highlight favorable conditions: Mamdani’s ideas are widely supported and would solve basic problems. Democrats now hold significant control in the legislature, and some see financial and political pathways to making the plans a success.

How could Mamdani finance his ambitious program? We broke it down by revenue source and proposal.

Raising Income

The Mamdani campaign projects it could raise about $10bn by increasing the business tax, levies on the affluent, and current government revenues.

Critics claim companies and the wealthy will move away, but this is disputed by credible research. Moreover, the business levy is on earnings made in the state no matter where a company is based, rendering the point at least partially moot.

Business Levy Hike

The mayor-elect calculates a rise in state taxes between seven point two five percent and eleven point five percent on corporate profits would produce around $5bn, a large portion of which would be directed to New York City. The legislature and governor would have to approve the proposal. State lawmakers have previously backed comparable ideas, but the state executive is against increasing levies.

However, the state leader supports childcare for all, a very popular proposal because child services is widely viewed as cost-prohibitive, stated an expert. It would be challenging for centrist lawmakers to “oppose passing a historical program”, he added. “Nobody argues ‘We shouldn’t do anything to reduce childcare costs.’”

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

Increasing Taxes on the Affluent

Mamdani’s plan calls for raising four billion dollars with a two percent increase on those earning above one million dollars each year. Though it’s a municipal levy, the state legislature must authorize the increase, and the proposal is typically resisted by moderate Democrats.

However there is a political pathway, he noted. Raising revenue on the wealthy is broadly popular and, similar to the business tax hike, using the funds to fund favored initiatives makes it easier to promote in the state capital.

Halt on Rent Increases

Regarding expense, a pause on rent hikes on rent-controlled apartments is the simplest to implement – it’s nearly free. However, a halt must be approved by the rent guidelines board, and there might not exist enough support on it before Mamdani appoints members with his preferred candidates.

Free and Fast Transit

The plan estimates free buses will cost a minimum of seven hundred million dollars, which factors in an fare-dodging percentage of 48%. Observers say Mamdani could likely cover the cost by streamlining or cutting other programs in the city’s $116bn city budget.

City-Owned Grocery Stores

A pilot program for five public food markets that would be built in neglected “food deserts” is estimated at $60m and could additionally be paid for by shifting focus in the $116bn budget.

Constructing Low-Cost Homes Properties

Many commentators to the right of Mamdani have dismissed the plan to invest approximately one hundred billion dollars developing two hundred thousand low-income homes over 10 years, largely because it would necessitate massive debt. He clarified those opposing this point mostly miss that the plan is not to take on $100bn at once – the debt would be accrued and repaid in tranches over several government terms.

He emphasized the proposal is not for no-cost homes, but cost-effective residences that would generate revenue to reduce debt. Moreover, the projects could in part be funded by private investment.

“That’s the way the proposal is feasible,” he concluded.

Universal Childcare

Implementing universal childcare would cost between $2.5bn and $12bn by many projections, depending on whether it is a municipal or state initiative and other factors. Funding is the major uncertainty – can the corporate and wealth taxes pass Albany? An expert said he expected negotiated adjustments, as is typical with big proposals.

“Proposals that Mamdani promised will likely get a haircut,” the expert said. “Furthermore the governor’s expressed resistance to revenue hikes could confront practical limits – she likely cannot achieve the objectives she wants on the spending side without compromise on the tax side.”