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Ambitious promises to make the metropolis more affordable for residents catapulted progressive candidate Zohran Mamdani to his surprising victory on election day. Among them are fare-free transit, childcare for all, and a large-scale expansion in low-cost housing.

However, making the urban center more affordable for residents is an costly government task, and many financial experts and politicians to Mamdani’s conservative side say he confronts numerous obstacles to effectively follow through on his key proposals.

Adding complexity to the situation is the federal administration, which will almost certainly pull funding for the city in an attempt to undermine Mamdani and open up funding gaps that complicate efforts to pay for new priorities.

Additionally, New York City must get state government approval to modify several revenue streams. An analyst pointed to the state assembly blocking the city from raising dog licensing fees in 2014 due to a dispute between the then mayor and a state representative.

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

Nonetheless, he and other experts highlight tailwinds: Mamdani’s proposals are very popular and would solve fundamental issues. The Democratic party now have large majorities in the legislature, and some identify financial and viable routes to making the plans reality.

How could Mamdani pay for his ambitious program? We broke it down by revenue source and initiative.

Raising Revenue

The Mamdani campaign estimates it could raise approximately $10bn by raising the corporate tax rate, levies on the affluent, and existing fee and tax collections.

Critics say companies and the high-earners will relocate, but that is contradicted by reliable studies. Moreover, the corporate tax is on profits made in the region regardless of where a company is based, making the argument largely moot.

Business Levy Increase

Mamdani estimates a rise in state taxes from seven point two five percent and 11.5% on business earnings would produce about five billion dollars, a large portion of which would be funneled to New York City. The legislature and governor would have to approve the plan. State lawmakers have in the past backed comparable ideas, but the governor is against raising taxes.

However, the governor backs universal childcare, a highly favored initiative because childcare is widely viewed as cost-prohibitive, stated an expert. It would be difficult for moderate Democrats to “oppose enacting a historical initiative”, he added. “No one argues ‘Nothing should be done to make childcare cheaper.’”

What’s been lacking, he explained, has been a leader like Mamdani who says: “Yeah, it requires funding, and we’re gonna raise taxes to get it done.”

Increasing Taxes on the Affluent

Mamdani’s plan calls for generating four billion dollars with a two percent hike on those earning above one million dollars each year. Although it’s a municipal levy, the state legislature must authorize the rise, and the proposal is generally opposed by centrist lawmakers.

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

Halt on Rent Increases

In terms of expense, a pause on rent hikes on rent-controlled apartments is the simplest to enforce – it’s nearly free. 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 own appointments.

Free and Fast Transit

Mamdani projects free buses will require at least $700m, which includes an evasion rate of 48%. Observers say Mamdani could probably cover the cost by streamlining or cutting other programs in the city’s $116bn city budget.

Publicly Run Grocery Stores

A pilot program for several city-owned grocery stores that would be established in underserved “areas lacking food access” is estimated at sixty million dollars and could also be paid for by adjusting focus in the one hundred sixteen billion dollar budget.

Building Affordable Housing Units

Numerous commentators to the right of Mamdani have written off the proposal to spend approximately one hundred billion dollars building 200,000 low-income homes over 10 years, largely because it would require substantial borrowing. He clarified those opposing this point mostly miss that the initiative is does not involve to take on $100bn at once – the debt would be accumulated and repaid in phases over several government terms.

He also stressed the plan is not for free housing, but affordable housing that would produce income to reduce debt. Furthermore, the projects could in part be privately financed.

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

Universal Childcare

Implementing childcare access for all would cost between two point five billion dollars and twelve billion dollars by most estimates, based on whether it is a municipal or state initiative and additional variables. Funding is the major uncertainty – will the business and high-earner levies pass the state capital? An expert said he anticipated some compromise, as often happens with large-scale plans.

“The things that Mamdani promised will probably get a haircut,” he said. “Furthermore 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 tax side.”