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Bold pledges to transform the city less expensive for New Yorkers propelled progressive candidate Zohran Mamdani to his surprising victory on election day. Included are free buses, universal childcare, and a large-scale increase in low-cost housing.

However, turning the city cost-effective for residents is an expensive government task, and many financial experts and elected officials to Mamdani’s right say he confronts too many obstacles to effectively follow through on his signature ideas.

Further complicating matters is the federal administration, which will likely pull funding for the city in an effort to sabotage Mamdani and create budget holes that complicate efforts to fund new priorities.

Additionally, New York City must get state legislature approval to adjust many revenue streams. One expert cited the state legislature stopping the municipality from raising dog licensing fees in 2014 due to a disagreement between the then mayor and a lawmaker.

“The dramatic way of putting it is the City cannot increase pet permit charges without state approval, and it was true then, and it’s true now,” the expert noted.

However, he and other experts highlight tailwinds: Mamdani’s proposals are very popular and would address fundamental issues. The Democratic party now hold large majorities in the state government, and some identify economic and viable routes to implementing the plans reality.

In what ways could Mamdani pay for his ambitious agenda? We broke it down by funding method and initiative.

Raising Income

The Mamdani campaign projects it could generate approximately $10bn by increasing the business tax, levies on the wealthy, and existing fee and tax collections.

Detractors say businesses and the wealthy will relocate, but that is contradicted by reliable studies. Additionally, the corporate tax is on profits made in the state no matter where a company is based, rendering the argument largely irrelevant.

Corporate Tax Hike

Mamdani estimates a state tax increase between 7.25% and 11.5% on corporate profits would generate around $5bn, a large portion of which would be funneled to the city. State leaders would have to authorize the plan. Legislative leaders have in the past backed comparable ideas, but the governor is against increasing levies.

Yet, the governor supports universal childcare, a highly favored proposal because childcare is widely viewed as cost-prohibitive, said one policy director. It would be difficult for centrist lawmakers to “resist passing a historical initiative”, he continued. “No one says ‘Nothing should be done to make childcare cheaper.’”

The missing element, he said, has been a leader like Mamdani who says: “Yes, it costs money, and we’re gonna raise taxes to get it done.”

Increasing Taxes on the Affluent

The proposal aims to generating $4bn with a 2% increase on those earning above $1m annually. Although it’s a city tax, the state legislature must authorize the rise, and the proposal is typically resisted by centrist Democrats.

But there is a political pathway, the expert noted. Increasing revenue on the rich is broadly popular and, similar to the corporate tax increase, using the funds to support popular programs makes it easier to promote in Albany.

Rent Freeze

Regarding expense, a pause on rent hikes on rent-controlled apartments is the simplest to enforce – it’s nearly free. But, a freeze must be approved by the rent guidelines board, and there might not exist enough support on it until Mamdani appoints members with his own appointments.

Free and Fast Buses

The plan estimates free buses will require at least $700m, which includes an evasion rate of forty-eight percent. Observers suggest Mamdani could likely pay for the expense by optimizing or reducing other programs in the city’s $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 sixty million dollars and could also be funded by adjusting priorities in the one hundred sixteen billion dollar budget.

Building Affordable Housing Units

Many people to the conservative side of Mamdani have dismissed the plan to spend about one hundred billion dollars building 200,000 affordable units over a decade, mainly because it would require massive borrowing. He said those arguing against this aspect mostly miss that the plan is does not involve to take on $100bn at once – the debt would be accumulated and repaid in tranches over multiple administrations.

He also stressed the plan is not for no-cost homes, but cost-effective residences that would generate revenue to reduce loans. Furthermore, the projects could in part be privately financed.

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

Childcare for All

Implementing childcare access for all would require between two point five billion dollars and $12bn by most estimates, depending on whether it is a municipal or state initiative and other factors. Financing is the major uncertainty – will the business and high-earner levies be approved in the state capital? An expert said he expected negotiated adjustments, as often happens with large-scale plans.

“Proposals that Mamdani pledged will likely get a haircut,” the expert said. “And the state leader’s expressed resistance to tax increases may just confront practical limits – she likely cannot achieve the objectives she desires on the expenditure front without some flexibility on the tax side.”