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Bold promises to make the metropolis less expensive for residents catapulted progressive candidate Zohran Mamdani to his unlikely win on election day. Included are fare-free transit, childcare for all, and a massive increase in low-cost housing.

However, turning the urban center more affordable for residents is an expensive public undertaking, and numerous economists and elected officials to Mamdani’s right say he confronts too many hurdles to meaningfully deliver on his signature ideas.

Adding complexity to matters is the federal administration, which will almost certainly withhold financial support for New York in an effort to undermine Mamdani and create budget holes that make it more difficult to fund fresh initiatives.

Additionally, the city must secure state government approval to modify many income sources. One expert cited the state assembly stopping the city from increasing pet registration costs in a prior year due to a disagreement between the then mayor and a lawmaker.

“The dramatic example of stating the issue is New York City cannot increase pet permit charges without state approval, and it was true then, and it remains the case today,” the expert said.

Nonetheless, he and other experts highlight favorable conditions: Mamdani’s ideas are very popular and would address fundamental issues. Democrats now have significant control in the legislature, and several see economic and viable routes to making the plans a success.

How might Mamdani pay for his bold agenda? We broke it down by funding method and proposal.

Raising Income

The Mamdani campaign projects it could raise approximately $10bn by increasing the corporate tax rate, taxes on the affluent, and existing fee and tax collections.

Detractors claim companies and the wealthy will relocate, but that is contradicted by credible research. Additionally, the business levy is on earnings made in the state regardless of where a company is located, making the point at least partially irrelevant.

Business Levy Hike

The mayor-elect calculates a rise in state taxes from seven point two five percent and eleven point five percent on corporate profits would generate about five billion dollars, much of which would be directed to New York City. The legislature and governor would have to authorize the proposal. Legislative leaders have previously supported similar proposals, but the governor opposes increasing levies.

However, the state leader supports universal childcare, a highly favored initiative because child services is commonly seen as too expensive, said one policy director. It would be difficult for centrist lawmakers to “oppose passing a landmark program”, he continued. “No one argues ‘We shouldn’t do anything to make childcare cheaper.’”

What’s been lacking, the expert said, has been a figure like Mamdani who says: “Yeah, it requires funding, and we will raise taxes to get it done.”

Raising Levies on the Wealthy

The proposal calls for generating $4bn with a two percent hike on those making more than $1m annually. Though it’s a city tax, the state legislature must approve the rise, and the proposal is generally opposed by centrist Democrats.

But there is a political pathway, the expert noted. Increasing taxes on the wealthy is broadly popular and, as with the business tax hike, allocating the proceeds to support favored initiatives helps to sell in Albany.

Rent Freeze

In terms of expense, a rent freeze on rent-controlled apartments is the easiest to implement – it’s minimally costly. But, a halt must be approved by the housing panel, and there may not be enough support on it before Mamdani fills it with his preferred candidates.

Free and Fast Buses

The plan projects free buses will cost at least $700m, which factors in an evasion rate of 48%. Observers say Mamdani could likely pay for the cost by streamlining or cutting additional services in the city’s $116bn annual spending plan.

City-Owned Grocery Stores

A pilot program for five public food markets that would be built in neglected “food deserts” is projected at sixty million dollars and could also be funded by shifting priorities in the one hundred sixteen billion dollar spending plan.

Building Affordable Housing Units

Many people to the right of Mamdani have dismissed the proposal to spend approximately $100bn building 200,000 low-income homes over a decade, largely because it would require massive borrowing. He said those arguing against this point mostly overlook that the plan is does not involve to borrow one hundred billion dollars immediately – the liability would be accumulated and repaid in phases over multiple administrations.

He also stressed the proposal does not call for no-cost homes, but affordable housing that would produce income to pay down debt. Furthermore, the developments could in part be funded by private investment.

“This is how the proposal adds up,” the expert said.

Universal Childcare

Establishing universal childcare would require between $2.5bn and $12bn by many projections, based on whether it is a city or state program and other factors. Funding is the major uncertainty – will the business and high-earner levies be approved in the state capital? One analyst commented he anticipated negotiated adjustments, as often happens with big proposals.

“Proposals that Mamdani promised will probably be scaled back,” the expert said. “Furthermore the state leader’s expressed resistance to tax increases may just confront practical limits – she probably can’t get the objectives she wants on the spending side without some flexibility on the revenue side.”