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Bold pledges to make the city more affordable for New Yorkers propelled democratic socialist Zohran Mamdani to his unlikely victory on election day. Included are free buses, universal childcare, and a massive expansion in low-cost housing.

However, making the urban center more affordable for inhabitants is an costly government task, and many economists and politicians to Mamdani’s right argue he faces numerous obstacles to meaningfully deliver on his signature ideas.

Adding complexity to the situation is the national government, which will almost certainly withhold financial support for the city in an attempt to sabotage Mamdani and create funding gaps that make it more difficult to fund new priorities.

Additionally, New York City must secure state government authorization to adjust many revenue streams. One expert pointed to the state legislature stopping the municipality from increasing pet registration costs in 2014 due to a disagreement between the incumbent at the time and a lawmaker.

“The dramatic way of putting it is New York City can’t raise pet permit charges without state approval, and that held true previously, and it remains the case today,” he noted.

However, he and other experts highlight tailwinds: Mamdani’s ideas are very popular and would solve fundamental issues. The Democratic party now hold large majorities in the legislature, and some see economic and viable routes to making the plans reality.

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

Raising Income

The Mamdani campaign projects it could generate approximately $10bn by raising the corporate tax rate, levies on the affluent, and current government revenues.

Critics say companies and the high-earners will move away, but this is contradicted by credible research. Moreover, the corporate tax is on profits made in the region regardless of where a business is located, rendering the point largely irrelevant.

Business Levy Increase

Mamdani calculates a state tax increase from seven point two five percent and 11.5% on business earnings would generate about $5bn, much of which would be directed to New York City. State leaders would have to approve the plan. Legislative leaders have previously backed similar proposals, but the governor is against raising taxes.

However, the state leader backs universal childcare, a very popular initiative because child services is commonly seen as cost-prohibitive, stated an expert. It would be difficult for centrist lawmakers to “resist passing a landmark initiative”, he added. “Nobody argues ‘We shouldn’t do anything to reduce childcare costs.’”

The missing element, the expert explained, 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 Wealthy

Mamdani’s plan aims to generating $4bn with a 2% hike on those making above $1m annually. Though it’s a municipal levy, the state government must authorize the increase, and the proposal is typically opposed by centrist Democrats.

However there is a feasible route, he said. Increasing taxes on the wealthy is widely accepted and, similar to the business tax hike, using the proceeds to support popular programs helps to promote in the state capital.

Rent Freeze

Regarding expense, a pause on rent hikes on rent-controlled apartments is the easiest to enforce – it’s nearly free. But, a halt must be authorized by the rent guidelines board, and there may not be sufficient backing on it before Mamdani appoints members with his own appointments.

Fare-Free and Efficient Buses

The plan estimates fare-free transit will cost at least seven hundred million dollars, which includes an fare-dodging percentage of forty-eight percent. Observers suggest Mamdani could likely pay for the expense by streamlining or reducing other programs in the municipal one hundred sixteen billion dollar annual spending plan.

City-Owned Grocery Stores

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 one hundred sixteen billion dollar spending plan.

Constructing Affordable Housing Properties

Many commentators to the conservative side of Mamdani have written off the plan to spend about $100bn developing 200,000 affordable units over a decade, largely because it would necessitate massive borrowing. He clarified those arguing against this aspect mostly overlook that the plan is does not involve to borrow $100bn at once – the debt would be accumulated and paid down in phases over multiple administrations.

He emphasized the plan is not for free housing, but cost-effective residences that would produce income to pay down loans. Moreover, the projects could in part be funded by private investment.

“That’s the way the proposal adds up,” he said.

Universal Childcare

Establishing childcare access for all would require from two point five billion dollars and twelve billion dollars by most estimates, based on whether it is a city or state program and other factors. Financing is the big question mark – can the business and high-earner levies be approved in the state capital? An expert said he expected negotiated adjustments, as often happens with large-scale plans.

“Proposals that Mamdani promised will probably get a haircut,” the expert remarked. “Furthermore the governor’s expressed opposition to revenue hikes could face reality – she likely can’t get the things she wants on the expenditure front without some flexibility on the revenue side.”