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Ambitious promises to transform the city more affordable for New Yorkers propelled progressive candidate Zohran Mamdani to his surprising win on Tuesday. Among them are fare-free transit, childcare for all, and a large-scale expansion in low-cost housing.

However, making the urban center more affordable for residents is an costly government task, and numerous financial experts and politicians to Mamdani’s conservative side say he faces too many obstacles to meaningfully deliver on his signature ideas.

Further complicating matters is the federal administration, which will almost certainly withhold financial support for the city in an attempt to undermine Mamdani and create budget holes that make it more difficult to fund new priorities.

Additionally, New York City must secure state legislature authorization to adjust many revenue streams. One expert pointed to the state legislature blocking the municipality from increasing dog licensing fees in 2014 due to a disagreement between the then mayor and a state representative.

“A striking example of putting it is the City cannot increase dog licensing fees without state legislature approval, and it was true then, and it remains the case today,” the expert said.

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

How could Mamdani finance his ambitious program? Here’s a detailed look by revenue source and initiative.

Raising Income

His team estimates it could generate approximately ten billion dollars by raising the corporate tax rate, taxes on the wealthy, and existing fee and tax collections.

Detractors claim companies and the wealthy will relocate, but that is contradicted by reliable studies. Additionally, the corporate tax is on profits made in the state no matter where a business is located, rendering the point at least partially moot.

Business Levy Increase

Mamdani calculates a state tax increase between 7.25% and 11.5% on corporate profits would produce around $5bn, a large portion 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.

However, the governor backs childcare for all, a highly favored initiative because childcare is commonly seen as cost-prohibitive, stated an expert. It would be challenging for centrist lawmakers to “oppose enacting a historical initiative”, he continued. “No one says ‘Nothing should be done to make childcare cheaper.’”

What’s been lacking, the expert explained, has been a figure like Mamdani who says: “Yeah, it costs money, and we’re gonna increase revenue to get it done.”

Raising Levies on the Wealthy

Mamdani’s plan calls for raising $4bn with a two percent increase on those making above one million dollars each year. Although it’s a municipal levy, the state government must approve the rise, and the proposal is typically resisted by centrist Democrats.

But there is a political pathway, the expert noted. Raising taxes on the wealthy is broadly popular and, as with the corporate tax increase, allocating the proceeds to fund favored initiatives helps to sell in Albany.

Halt on Rent Increases

In terms of cost, a pause on rent hikes on regulated housing is the simplest to implement – it’s nearly free. But, a freeze must be authorized by the rent guidelines board, and there might not exist enough support on it until Mamdani fills it with his own appointments.

Free and Fast Transit

The plan projects fare-free transit will require a minimum of seven hundred million dollars, which factors in an fare-dodging percentage of 48%. Analysts say Mamdani could probably pay for the cost by streamlining or reducing other programs in the city’s $116bn city budget.

Publicly Run Food Markets

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

Constructing Low-Cost Homes Units

Numerous commentators to the right of Mamdani have written off the plan to invest about one hundred billion dollars building 200,000 affordable units over 10 years, largely because it would necessitate massive debt. He said those arguing against this aspect largely overlook that the plan is does not involve to borrow $100bn immediately – the liability would be accrued and paid down in tranches over multiple administrations.

He also stressed the proposal is not for no-cost homes, but affordable housing that would produce income to reduce debt. Moreover, the developments could in part be funded by private investment.

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

Childcare for All

Implementing childcare access for all would cost between two point five billion dollars and twelve billion dollars by many projections, based on whether it is a city or state program and additional variables. Financing is the major uncertainty – will the corporate and wealth taxes pass the state capital? One analyst commented he anticipated some compromise, as is typical with big proposals.

“The things that Mamdani promised will likely get a haircut,” the expert said. “Furthermore the state leader’s stated resistance to revenue hikes may just confront practical limits – she likely can’t get the objectives she wants on the spending side without some flexibility on the tax side.”