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Bold promises to transform the city more affordable for residents catapulted progressive candidate Zohran Mamdani to his surprising victory on Tuesday. Included are fare-free transit, childcare for all, and a large-scale expansion in low-cost housing.

However, turning the city more affordable for residents is an costly public undertaking, and numerous economists and politicians to Mamdani’s conservative side say he confronts too many hurdles to meaningfully deliver on his signature ideas.

Further complicating the situation is the federal administration, which will likely withhold financial support for New York in an effort to sabotage Mamdani and create budget holes that complicate efforts to pay for new priorities.

Additionally, the city must secure 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 incumbent at the time and a state representative.

“A striking example of stating the issue is the City can’t raise dog licensing fees without state approval, and it was true then, and it remains the case today,” he noted.

However, analysts point to tailwinds: Mamdani’s ideas are widely supported and would address fundamental issues. The Democratic party now hold significant control in the state government, and several see financial and viable routes to making the proposals a success.

How could Mamdani finance his bold agenda? We broke it down by funding method and initiative.

Raising Income

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

Critics say companies and the high-earners will move away, 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 point at least partially moot.

Business Levy Increase

The mayor-elect estimates a state tax increase between 7.25% and eleven point five percent on business earnings would generate around five billion dollars, a large portion of which would be funneled to New York City. State leaders would have to authorize the proposal. Legislative leaders have in the past supported comparable ideas, but the state executive opposes increasing levies.

Yet, the state leader supports childcare for all, a highly favored initiative because childcare is widely viewed as cost-prohibitive, said an expert. It would be challenging for moderate Democrats to “resist passing a historical initiative”, he continued. “No one argues ‘Nothing should be done to reduce childcare costs.’”

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

Increasing Taxes on the Affluent

Mamdani’s plan calls for raising four billion dollars with a 2% hike on those earning above one million dollars each year. Though it’s a city tax, the state government must approve the increase, and the proposal is generally resisted by moderate Democrats.

But there is a political pathway, the expert noted. Raising taxes on the wealthy is broadly popular and, similar to the corporate tax increase, using the proceeds to support favored initiatives makes it easier to promote in Albany.

Rent Freeze

In terms of expense, a rent freeze 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 may not be sufficient backing on it before Mamdani fills it with his own appointments.

Fare-Free and Efficient Transit

Mamdani projects fare-free transit will require a minimum of seven hundred million dollars, which factors in an evasion rate of 48%. Analysts suggest Mamdani could probably pay for the expense by optimizing or cutting other programs in the municipal $116bn city budget.

City-Owned Food Markets

A trial initiative for several city-owned grocery stores that would be established in neglected “food deserts” is estimated at sixty million dollars and could additionally be funded by adjusting focus in the $116bn spending plan.

Constructing Low-Cost Homes Properties

Many commentators to the conservative side of Mamdani have dismissed the proposal to invest approximately one hundred billion dollars developing 200,000 affordable units over a decade, largely because it would require massive debt. He said those arguing against this aspect largely overlook that the initiative is does not involve to borrow $100bn at once – the liability would be accumulated and paid down in tranches over multiple administrations.

He emphasized the plan is not for free housing, but cost-effective residences that would produce income to reduce debt. Moreover, the developments could partially be privately financed.

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

Childcare for All

Establishing universal childcare would cost from two point five billion dollars and twelve billion dollars by most estimates, depending on whether it is a city or state program and additional variables. Funding is the major uncertainty – can the business and high-earner levies pass Albany? One analyst commented he anticipated some compromise, as often happens with large-scale plans.

“Proposals that Mamdani pledged will likely get a haircut,” the expert said. “Furthermore the governor’s stated opposition to tax increases could face reality – she probably can’t get the things she desires on the expenditure front without some flexibility on the tax side.”