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Bold pledges to make the city more affordable for New Yorkers catapulted progressive candidate Zohran Mamdani to his surprising win on election day. Included are fare-free transit, universal childcare, and a large-scale expansion in low-cost housing.

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

Adding complexity to the situation is the federal administration, which will almost certainly withhold financial support for New York in an attempt to sabotage Mamdani and open up funding gaps that make it more difficult to fund new priorities.

Additionally, the city must get state legislature approval to modify several income sources. An analyst pointed to the state assembly blocking the city from raising dog licensing fees in a prior year due to a dispute between the then mayor and a state representative.

“The dramatic way of stating the issue is the City cannot increase pet permit charges without state legislature approval, and that held true previously, and it remains the case today,” he said.

However, analysts highlight favorable conditions: Mamdani’s ideas are very popular and would address basic problems. Democrats now hold large majorities in the state government, and several see economic and political pathways to making the plans reality.

In what ways could Mamdani finance his bold agenda? Here’s a detailed look by funding method and initiative.

Generating Income

His team estimates it could raise approximately $10bn by increasing the business tax, levies on the wealthy, and current government revenues.

Critics claim companies and the wealthy will move away, but this is disputed by credible research. Additionally, the business levy is on profits made in the state no matter where a business is located, rendering the point at least partially irrelevant.

Corporate Tax Hike

Mamdani estimates a state tax increase from seven point two five percent and 11.5% on corporate profits would produce about $5bn, much of which would be directed to the city. The legislature and governor would have to approve the plan. Legislative leaders have previously backed similar proposals, but the state executive opposes increasing levies.

However, the governor supports childcare for all, a very popular initiative because child services is commonly seen as too expensive, said one policy director. It would be difficult for moderate Democrats to “resist passing a historical initiative”, he added. “No one argues ‘We shouldn’t do anything to make childcare cheaper.’”

The missing element, he said, has been a figure like Mamdani who says: “Yeah, it costs money, and we’re gonna raise taxes to get it done.”

Increasing Levies on the Wealthy

The proposal aims to raising four billion dollars with a 2% increase on those making more than one million dollars each year. Although it’s a municipal levy, the state legislature must authorize the increase, and the idea is typically resisted by moderate lawmakers.

But there is a feasible route, the expert said. Raising taxes on the wealthy is broadly popular and, as with the corporate tax increase, allocating the proceeds to support favored initiatives makes it easier to promote in Albany.

Rent Freeze

In terms of expense, a pause on rent hikes on regulated housing is the simplest to enforce – it’s minimally costly. But, a halt must be authorized by the housing panel, and there may not be enough support on it before Mamdani fills it with his preferred candidates.

Free and Fast Transit

The plan estimates fare-free transit will cost a minimum of $700m, which includes an evasion rate of forty-eight percent. Observers suggest Mamdani could likely cover the expense by streamlining or cutting additional services in the city’s $116bn city budget.

City-Owned Food Markets

A trial initiative for several city-owned grocery stores that would be built in underserved “food deserts” is estimated at $60m and could also be paid for by shifting priorities in the one hundred sixteen billion dollar budget.

Constructing Low-Cost Homes Properties

Numerous commentators to the conservative side of Mamdani have written off the proposal to spend about one hundred billion dollars developing two hundred thousand low-income homes over 10 years, mainly because it would necessitate substantial borrowing. The expert clarified those opposing this point mostly miss that the initiative is does not involve to take on $100bn immediately – the liability would be accrued and paid down in tranches over several government terms.

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

“This is how the proposal is feasible,” he concluded.

Childcare for All

Implementing childcare access for all would require between $2.5bn and $12bn by most estimates, depending on whether it is a municipal or state initiative and other factors. Financing is the big question mark – will the business and high-earner levies be approved in Albany? An expert said he expected negotiated adjustments, as often happens with big proposals.

“The things that Mamdani pledged will probably be scaled back,” he remarked. “Furthermore the state leader’s stated opposition to revenue hikes could face reality – she probably can’t get the things she desires on the spending side without some flexibility on the revenue side.”