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Ambitious promises to make the metropolis more affordable for New Yorkers catapulted progressive candidate Zohran Mamdani to his unlikely win on election day. Among them are free buses, universal childcare, and a massive expansion in low-cost housing.

However, turning the city more affordable for residents is an costly government task, and numerous economists and elected officials to Mamdani’s right argue he faces too many obstacles to meaningfully deliver on his key proposals.

Adding complexity to the situation 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 pay for fresh initiatives.

Additionally, the city must get state government authorization to modify several income sources. One expert pointed to the state assembly stopping the city from raising pet registration costs in 2014 due to a dispute between the then mayor and a lawmaker.

“The dramatic way 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 said.

Nonetheless, he and other experts highlight tailwinds: Mamdani’s ideas are very popular and would solve fundamental issues. Democrats now have significant control in the legislature, and some identify economic and political pathways to implementing the proposals reality.

How might Mamdani pay for his ambitious program? Here’s a detailed look by funding method and proposal.

Raising Revenue

The Mamdani campaign estimates it could generate approximately ten billion dollars by increasing the corporate tax rate, taxes on the wealthy, and current government revenues.

Detractors claim businesses and the wealthy will move away, but that is disputed by credible research. Additionally, the corporate tax is on profits made in the state regardless of where a business is based, rendering the point largely moot.

Corporate Tax Increase

Mamdani estimates a state tax increase between seven point two five percent and eleven point five percent on corporate profits would generate around $5bn, a large portion of which would be funneled to New York City. The legislature and governor would have to approve the plan. Legislative leaders have previously supported similar proposals, but the state executive opposes raising taxes.

Yet, the governor supports childcare for all, a highly favored proposal because child services is widely viewed as cost-prohibitive, stated an expert. It would be difficult for moderate Democrats to “oppose enacting a historical program”, he continued. “Nobody says ‘Nothing should be done to reduce childcare costs.’”

What’s been lacking, he explained, has been a figure like Mamdani who declares: “Yeah, it costs money, and we will increase revenue to get it done.”

Increasing Levies on the Affluent

Mamdani’s plan aims to generating $4bn with a 2% hike on those earning more than one million dollars each year. Though it’s a city tax, the state government must authorize the increase, and the idea is generally resisted by moderate Democrats.

But there is a political pathway, he noted. Increasing taxes on the rich is widely accepted and, as with the business tax hike, using the proceeds to fund popular programs makes it easier to promote in the state capital.

Halt on Rent Increases

In terms of cost, a rent freeze on rent-controlled apartments is the easiest to enforce – it’s nearly free. However, a halt must be authorized by the rent guidelines board, and there might not exist sufficient backing on it until Mamdani fills it with his own appointments.

Free and Fast Buses

Mamdani estimates free buses will cost a minimum of seven hundred million dollars, which factors in an evasion rate of 48%. Observers suggest Mamdani could likely cover the expense by streamlining or cutting additional services in the city’s one hundred sixteen billion dollar city budget.

Publicly Run Grocery Stores

A pilot program for five city-owned grocery stores that would be built in neglected “food deserts” is estimated at sixty million dollars and could additionally be paid for by shifting priorities in the $116bn spending plan.

Building Low-Cost Homes Properties

Numerous commentators to the conservative side of Mamdani have dismissed the plan to invest about one hundred billion dollars developing two hundred thousand affordable units over 10 years, mainly because it would necessitate substantial debt. He clarified those arguing against this point mostly overlook that the plan is not to borrow one hundred billion dollars at once – the liability would be accumulated and repaid in phases over multiple administrations.

He also stressed the proposal is not for no-cost homes, but affordable housing that would generate revenue to pay down debt. Moreover, the projects could in part be funded by private investment.

“That’s the way the plan is feasible,” the expert concluded.

Universal Childcare

Implementing universal childcare would cost from two point five billion dollars and twelve billion dollars by most estimates, based on whether it is a city or state program and additional variables. Financing is the big question mark – will the business and high-earner levies be approved in Albany? One analyst commented he anticipated some compromise, as often happens with large-scale plans.

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