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Ambitious promises to transform the metropolis less expensive for New Yorkers catapulted progressive candidate Zohran Mamdani to his unlikely victory on Tuesday. Included are fare-free transit, universal childcare, and a large-scale expansion in low-cost housing.

However, making the urban center cost-effective for residents is an costly government task, and many economists and elected officials to Mamdani’s right argue he faces numerous obstacles to meaningfully deliver on his key proposals.

Further complicating matters is the national government, which will almost certainly withhold financial support for New York in an effort to sabotage Mamdani and open up budget holes that make it more difficult to fund fresh initiatives.

Additionally, New York City must get state government approval to adjust many income sources. An analyst pointed to the state assembly stopping the city from raising dog licensing fees in a prior year due to a disagreement between the then mayor and a state representative.

“The dramatic way of putting it 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 very popular and would address fundamental issues. The Democratic party now have large majorities in the legislature, and several identify financial and viable routes to implementing the proposals reality.

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

Generating Income

His team estimates it could generate approximately ten billion dollars by increasing the corporate tax rate, taxes on the affluent, and existing fee and tax collections.

Detractors say companies and the wealthy will move away, but that is disputed by reliable studies. Moreover, the corporate tax is on earnings made in the region no matter where a business is located, rendering the argument at least partially moot.

Corporate Tax Hike

Mamdani calculates a rise in state taxes from 7.25% and 11.5% on business earnings would generate about $5bn, a large portion of which would be funneled to the city. State leaders would have to authorize the proposal. Legislative leaders have in the past supported comparable ideas, but the state executive opposes raising taxes.

However, the state leader backs childcare for all, a very popular initiative because child services is commonly seen as cost-prohibitive, said one policy director. It would be difficult for moderate Democrats to “resist passing a historical initiative”, he added. “Nobody argues ‘We shouldn’t do anything to reduce childcare costs.’”

What’s been lacking, the expert said, has been a leader like Mamdani who says: “Yes, it costs money, and we’re gonna raise taxes to get it done.”

Raising Levies on the Affluent

The proposal aims to raising $4bn with a 2% hike on those making more than $1m annually. Though it’s a municipal levy, the state legislature must approve the rise, and the idea is generally opposed by moderate lawmakers.

But there is a feasible route, the expert said. Raising taxes on the rich is widely accepted and, similar to the corporate tax increase, using the proceeds to fund favored initiatives makes it easier to promote in Albany.

Rent Freeze

Regarding cost, a pause on rent hikes on rent-controlled apartments is the easiest to implement – it’s nearly free. But, a halt must be approved by the housing panel, and there may not be sufficient backing on it until Mamdani fills it with his preferred candidates.

Free and Fast Transit

Mamdani projects free buses will cost a minimum of $700m, which factors in an evasion rate of 48%. Analysts say Mamdani could likely cover the cost by optimizing or cutting other programs in the city’s $116bn city budget.

City-Owned Food Markets

A pilot program for several city-owned grocery stores that would be established in neglected “food deserts” is projected at $60m and could additionally be funded by shifting focus in the one hundred sixteen billion dollar budget.

Building Affordable Housing Properties

Many commentators to the right of Mamdani have dismissed the plan to invest about one hundred billion dollars developing 200,000 low-income homes over 10 years, largely because it would require massive debt. He clarified those opposing this aspect largely overlook that the initiative is not to take on one hundred billion dollars immediately – the debt would be accumulated and paid down in phases over multiple administrations.

He also stressed the plan does not call for no-cost homes, but affordable housing that would generate revenue to pay down loans. Moreover, the developments could in part be funded by private investment.

“That’s the way the plan is feasible,” he said.

Childcare for All

Implementing universal childcare would require between two point five billion dollars and $12bn by most estimates, depending on whether it is a municipal or state initiative and additional variables. Financing is the big question mark – will the corporate and wealth taxes be approved in the state capital? One analyst commented he anticipated negotiated adjustments, as often happens with big proposals.

“Proposals that Mamdani promised will likely be scaled back,” the expert said. “And the state leader’s stated resistance to revenue hikes could face reality – she probably cannot achieve the objectives she desires on the spending side without some flexibility on the revenue side.”