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Bold promises to make the city less expensive for residents catapulted democratic socialist Zohran Mamdani to his surprising victory on Tuesday. Included are free buses, childcare for all, and a large-scale increase in affordable homes.

However, turning the city more affordable for inhabitants is an costly public undertaking, and numerous financial experts and elected officials to Mamdani’s conservative side argue he faces too many hurdles to effectively follow through on his signature ideas.

Adding complexity to matters is the federal administration, which will likely pull funding for the city in an effort to sabotage Mamdani and create funding gaps that make it more difficult to fund new priorities.

Additionally, New York City must get state government authorization to adjust several revenue streams. An analyst pointed to the state assembly blocking 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.

“The dramatic way of putting it is New York City can’t raise pet permit charges without state approval, and that held true previously, and it remains the case today,” he said.

Nonetheless, analysts highlight favorable conditions: Mamdani’s proposals are very popular and would address fundamental issues. Democrats now hold large majorities in the state government, and several identify financial and political pathways to implementing the plans a success.

How might Mamdani finance his ambitious agenda? We broke it down by revenue source and initiative.

Raising Revenue

The Mamdani campaign projects it could generate approximately ten billion dollars by raising the business tax, levies on the affluent, and existing fee and tax collections.

Detractors say businesses and the high-earners will relocate, but this is disputed by reliable studies. Additionally, the corporate tax is on profits made in the state regardless of where a company is based, making the point largely irrelevant.

Corporate Tax Hike

The mayor-elect calculates a rise in state taxes from 7.25% and eleven point five percent on business earnings would generate about five billion dollars, a large portion of which would be directed to the city. State leaders would have to authorize the plan. State lawmakers have in the past backed similar proposals, but the state executive opposes raising taxes.

Yet, the state leader supports childcare for all, a highly favored initiative because child services is widely viewed as cost-prohibitive, stated one policy director. It would be difficult for moderate Democrats to “resist enacting a landmark initiative”, he added. “Nobody argues ‘We shouldn’t do anything to reduce childcare costs.’”

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

Raising Taxes on the Affluent

The proposal aims to generating $4bn with a 2% increase on those earning more than $1m each year. Though it’s a city tax, the state government must authorize the rise, and the proposal is generally opposed by moderate lawmakers.

But there is a feasible route, the expert noted. Raising revenue on the wealthy is widely accepted and, as with the corporate tax increase, using the funds to support favored initiatives helps to promote in Albany.

Halt on Rent Increases

Regarding expense, a rent freeze on regulated housing is the simplest to enforce – it’s minimally costly. However, a freeze must be authorized by the housing panel, and there might not exist enough support on it until Mamdani appoints members with his own appointments.

Fare-Free and Efficient Buses

Mamdani projects fare-free transit will cost a minimum of seven hundred million dollars, which includes an fare-dodging percentage of 48%. Observers suggest Mamdani could probably pay for the expense by streamlining or cutting other programs in the municipal $116bn annual spending plan.

City-Owned Food Markets

A trial initiative for five public food markets that would be built in neglected “food deserts” is estimated at $60m and could also be funded by shifting priorities in the one hundred sixteen billion dollar spending plan.

Constructing Affordable Housing Units

Numerous people to the right of Mamdani have written off the proposal to spend approximately one hundred billion dollars building two hundred thousand low-income homes over 10 years, largely because it would require massive borrowing. He clarified those opposing this aspect largely overlook that the plan is not to borrow $100bn at once – the debt would be accumulated and paid down in phases over multiple administrations.

He also stressed the proposal is not for free housing, but cost-effective residences that would produce income to reduce debt. Furthermore, the projects could partially be funded by private investment.

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

Childcare for All

Establishing childcare access for all would require between $2.5bn and $12bn by most estimates, depending on whether it is a city or state program and other factors. Funding is the big question mark – can the business and high-earner levies pass Albany? One analyst commented he expected negotiated adjustments, as is typical with big proposals.

“The things that Mamdani promised will probably be scaled back,” the expert said. “And the state leader’s stated resistance to revenue hikes could confront practical limits – she probably cannot achieve the objectives she wants on the spending side without some flexibility on the tax side.”