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Bold pledges to make the city more affordable for residents catapulted democratic socialist Zohran Mamdani to his unlikely win on Tuesday. Included are fare-free transit, universal childcare, and a massive increase in affordable homes.

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

Further complicating the situation is the federal administration, which will likely pull funding for the city in an attempt to sabotage Mamdani and open up budget holes that complicate efforts to fund fresh initiatives.

Additionally, New York City must get state government authorization to adjust several income sources. One expert cited the state assembly stopping the city from increasing pet registration costs in a prior year due to a dispute between the incumbent at the time and a lawmaker.

“The dramatic way of stating the issue is the City cannot increase dog licensing fees without state approval, and it was true then, and it’s true now,” he said.

However, analysts highlight tailwinds: Mamdani’s proposals are widely supported and would solve fundamental issues. Democrats now hold large majorities in the legislature, and some identify financial and viable routes to implementing the proposals a success.

In what ways might Mamdani finance his bold program? We broke it down by funding method and initiative.

Raising Revenue

The Mamdani campaign projects it could raise approximately $10bn by raising the business tax, levies on the wealthy, and existing fee and tax collections.

Critics claim companies and the wealthy will relocate, but this is disputed by credible research. Additionally, the corporate tax is on profits made in the region no matter where a business is located, making the point at least partially irrelevant.

Corporate Tax Hike

Mamdani calculates a rise in state taxes from seven point two five percent and eleven point five percent on corporate profits would generate about $5bn, a large portion of which would be funneled to New York City. State leaders would have to authorize the plan. State lawmakers have in the past backed similar proposals, but the state executive is against increasing levies.

Yet, the state leader backs childcare for all, a very popular initiative because child services is commonly seen as cost-prohibitive, stated an expert. It would be challenging for centrist lawmakers to “resist enacting a landmark program”, he added. “Nobody argues ‘We shouldn’t do anything to make childcare cheaper.’”

The missing element, he explained, has been a figure like Mamdani who says: “Yes, it requires funding, and we will increase revenue to make it happen.”

Increasing Levies on the Wealthy

The proposal calls for generating $4bn with a 2% hike on those making more than one million dollars annually. Though it’s a city tax, the state legislature must authorize the increase, and the idea is generally resisted by centrist lawmakers.

However there is a political pathway, he noted. Raising revenue on the wealthy is broadly popular and, as with the business tax hike, allocating the funds to support favored initiatives makes it easier to sell in the state capital.

Rent Freeze

Regarding cost, a pause on rent hikes on rent-controlled apartments is the easiest to enforce – it’s nearly free. But, a freeze must be approved by the rent guidelines board, and there may not be sufficient backing on it until Mamdani appoints members with his preferred candidates.

Free and Fast Transit

Mamdani projects fare-free transit will require a minimum of $700m, which factors in an fare-dodging percentage of forty-eight percent. Observers suggest Mamdani could likely pay for the cost by streamlining or reducing other programs in the municipal one hundred sixteen billion dollar annual spending plan.

Publicly Run Grocery Stores

A trial initiative for several public food markets that would be established in underserved “areas lacking food access” is projected at $60m and could also be paid for by adjusting focus in the one hundred sixteen billion dollar spending plan.

Building Low-Cost Homes Properties

Numerous commentators to the right of Mamdani have written off the plan to invest about one hundred billion dollars developing 200,000 low-income homes over 10 years, largely because it would require substantial borrowing. He clarified those opposing this point mostly miss that the plan is does not involve to take on $100bn immediately – the debt would be accumulated and paid down in tranches over multiple administrations.

He also stressed the plan does not call for no-cost homes, but cost-effective residences that would produce income to pay down loans. Moreover, the developments could partially be privately financed.

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

Universal Childcare

Implementing universal childcare would cost from two point five billion dollars and twelve billion dollars by many projections, based 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 pass the state capital? An expert commented he anticipated negotiated adjustments, as is typical with large-scale plans.

“The things that Mamdani pledged will probably get a haircut,” the expert said. “Furthermore the governor’s stated resistance to tax increases could confront practical limits – she probably cannot achieve the things she desires on the expenditure front without some flexibility on the tax side.”