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Bold pledges to make the city less expensive for New Yorkers catapulted progressive candidate Zohran Mamdani to his surprising win on election day. Among them are fare-free transit, childcare for all, and a large-scale expansion in affordable homes.

However, turning the city more affordable for residents is an expensive public undertaking, and many financial experts and elected officials to Mamdani’s conservative side argue he confronts too many hurdles 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 undermine Mamdani and open up budget holes that complicate efforts to pay for fresh initiatives.

Additionally, the city must secure state government authorization to modify several revenue streams. One expert pointed to the state legislature blocking the municipality from increasing pet registration costs in 2014 due to a dispute between the then mayor and a state representative.

“The dramatic example of stating the issue is New York City cannot increase dog licensing fees without state legislature 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 basic problems. Democrats now have significant control in the legislature, and several identify economic and political pathways to making the proposals reality.

In what ways could Mamdani finance his ambitious program? We broke it down by revenue source and initiative.

Raising Revenue

His team projects it could generate about $10bn by raising the corporate tax rate, levies on the wealthy, and existing fee and tax collections.

Detractors say companies and the high-earners will move away, but this is contradicted by credible research. Additionally, the corporate tax is on earnings made in the region no matter where a company is based, making the argument largely irrelevant.

Corporate Tax Hike

The mayor-elect estimates a state tax increase from 7.25% and eleven point five percent on corporate profits would produce around $5bn, much of which would be directed to the city. The legislature and governor would have to authorize the proposal. Legislative leaders have previously backed similar proposals, but the governor is against increasing levies.

Yet, the state leader supports universal childcare, a highly favored proposal because childcare is widely viewed as too expensive, stated an expert. It would be difficult for moderate Democrats to “oppose passing a historical initiative”, he added. “Nobody says ‘Nothing should be done to make childcare cheaper.’”

What’s been lacking, the expert explained, has been a figure like Mamdani who declares: “Yeah, it requires funding, and we will raise taxes to make it happen.”

Raising Levies on the Affluent

Mamdani’s plan aims to generating four billion dollars with a 2% hike on those making more than $1m each year. Though it’s a city tax, the state legislature must authorize the increase, and the proposal is generally opposed by centrist lawmakers.

But there is a political pathway, the expert noted. Raising revenue on the wealthy is broadly popular and, as with the business tax hike, using the funds to support favored initiatives makes it easier to sell in Albany.

Rent Freeze

In terms of cost, a rent freeze on rent-controlled apartments is the simplest to enforce – it’s minimally costly. But, a halt must be authorized by the housing panel, and there might not exist sufficient backing on it until Mamdani fills it with his own appointments.

Free and Fast Transit

The plan projects free buses will cost at least seven hundred million dollars, which factors in an fare-dodging percentage of 48%. Analysts say Mamdani could probably cover the cost by streamlining or cutting other programs in the city’s $116bn annual spending plan.

Publicly Run Grocery Stores

A trial initiative for several city-owned grocery stores that would be established in underserved “food deserts” is projected at $60m and could additionally be paid for by adjusting focus in the $116bn budget.

Constructing Affordable Housing Properties

Many commentators to the right of Mamdani have dismissed the proposal to invest about $100bn developing 200,000 affordable units over 10 years, mainly because it would necessitate substantial debt. The expert clarified those arguing against this point mostly overlook that the plan is not to borrow $100bn immediately – the debt would be accrued and paid down in phases over multiple administrations.

He also stressed the plan does not call for free housing, but affordable housing that would generate revenue to pay down debt. Furthermore, the developments could partially be funded by private investment.

“That’s the way the plan adds up,” he concluded.

Childcare for All

Establishing childcare access for all would require from $2.5bn and twelve billion dollars by most estimates, depending on whether it is a city or state program and additional variables. Funding is the big question mark – can the corporate and wealth taxes be approved in Albany? One analyst said he anticipated some compromise, as often happens with big proposals.

“The things that Mamdani promised will likely get a haircut,” he said. “And the state leader’s expressed opposition to tax increases could face reality – she likely cannot achieve the things she wants on the spending side without some flexibility on the tax side.”