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Bold pledges to make the metropolis less expensive for New Yorkers propelled progressive candidate Zohran Mamdani to his unlikely win on Tuesday. Included are fare-free transit, childcare for all, and a large-scale increase in low-cost housing.

However, turning the city more affordable for residents is an expensive public undertaking, and many financial experts and politicians to Mamdani’s right say he faces too many obstacles to effectively follow through on his signature ideas.

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

Additionally, the city must secure state legislature authorization to modify several revenue streams. An analyst cited the state assembly blocking the city from increasing dog licensing fees in 2014 due to a dispute between the then mayor and a lawmaker.

“A striking way of putting it is the City cannot increase pet permit charges without state legislature approval, and it was true then, and it’s true now,” the expert noted.

However, he and other experts highlight favorable conditions: Mamdani’s ideas are widely supported and would solve fundamental issues. Democrats now hold significant control in the legislature, and some identify financial and viable routes to making the proposals a success.

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

Generating Revenue

The Mamdani campaign projects it could generate about $10bn by raising the corporate tax rate, taxes on the affluent, and existing fee and tax collections.

Detractors say companies and the high-earners will relocate, but this is disputed by credible research. Moreover, the business levy is on profits made in the region regardless of where a business is based, rendering the point at least partially moot.

Corporate Tax Increase

The mayor-elect calculates a rise in state taxes between 7.25% and eleven point five percent on corporate profits would generate around five billion dollars, a large portion of which would be directed to the city. State leaders would have to authorize the proposal. State lawmakers have in the past supported similar proposals, but the state executive opposes increasing levies.

However, the state leader supports childcare for all, a very popular initiative because child services is commonly seen as too expensive, stated one policy director. It would be challenging for centrist lawmakers to “oppose enacting a historical program”, he continued. “Nobody argues ‘We shouldn’t do anything to reduce childcare costs.’”

The missing element, the expert said, has been a figure like Mamdani who declares: “Yeah, it requires funding, and we will raise taxes to make it happen.”

Increasing Levies on the Affluent

The proposal aims to generating $4bn with a two percent hike on those earning above $1m annually. Although it’s a city tax, the state legislature must authorize the rise, and the idea is generally opposed by centrist lawmakers.

However there is a feasible route, the expert noted. Increasing taxes on the wealthy is broadly popular and, similar to the business tax hike, using the funds to fund popular programs helps to promote in the state capital.

Rent Freeze

Regarding expense, a rent freeze on regulated housing is the simplest to implement – it’s minimally costly. However, a freeze must be approved by the housing panel, and there may not be enough support on it until Mamdani fills it with his own appointments.

Fare-Free and Efficient Buses

Mamdani projects fare-free transit will cost a minimum of seven hundred million dollars, which factors in an evasion rate of forty-eight percent. Observers suggest Mamdani could probably pay for the expense by optimizing or cutting other programs in the city’s one hundred sixteen billion dollar annual spending plan.

City-Owned Food Markets

A pilot program for several city-owned grocery stores that would be built in underserved “areas lacking food access” is estimated at $60m and could also be funded by shifting priorities in the $116bn budget.

Building Low-Cost Homes Units

Numerous commentators to the right of Mamdani have written off the plan to invest approximately $100bn building two hundred thousand low-income homes over 10 years, mainly because it would necessitate massive borrowing. He said those arguing against this aspect mostly overlook that the initiative is not to borrow $100bn immediately – the debt would be accumulated and repaid in phases over several government terms.

He also stressed the proposal is not for free housing, but affordable housing that would produce income to reduce loans. Furthermore, the projects could in part be funded by private investment.

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

Universal Childcare

Establishing childcare access for all would require between two point five billion dollars and $12bn by most estimates, based on whether it is a municipal or state initiative and other factors. Funding is the big question mark – can the corporate and wealth taxes be approved in the state capital? One analyst said he expected negotiated adjustments, as is typical with large-scale plans.

“Proposals that Mamdani promised will likely be scaled back,” the expert said. “And the governor’s expressed resistance to tax increases could confront practical limits – she probably can’t get the objectives she desires on the expenditure front without some flexibility on the revenue side.”