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Ambitious promises to make the metropolis more affordable for New Yorkers catapulted democratic socialist Zohran Mamdani to his unlikely victory on Tuesday. Among them are free buses, childcare for all, and a large-scale increase in affordable homes.

However, making the city cost-effective for residents is an expensive public undertaking, and numerous financial experts and elected officials to Mamdani’s right argue he confronts too many obstacles to meaningfully deliver on his key proposals.

Further complicating the situation is the national government, which will likely pull funding for New York in an effort to sabotage Mamdani and create funding gaps that complicate efforts to pay for new priorities.

Additionally, the city must secure state government authorization to adjust many income sources. An analyst cited the state legislature blocking the city from raising dog licensing fees in 2014 due to a disagreement between the incumbent at the time and a lawmaker.

“The dramatic example of stating the issue is New York City can’t raise dog licensing fees without state legislature approval, and that held true previously, and it remains the case today,” he said.

Nonetheless, he and other experts point to favorable conditions: Mamdani’s ideas are widely supported and would address basic problems. The Democratic party now have large majorities in the state government, and some identify financial and viable routes to making the proposals a success.

In what ways might Mamdani finance his bold agenda? We broke it down by revenue source and initiative.

Raising Revenue

His team projects it could generate about ten billion dollars by raising the corporate tax rate, taxes on the affluent, and current government revenues.

Detractors say companies and the high-earners will relocate, but this is contradicted by reliable studies. Additionally, the corporate tax is on earnings made in the region no matter where a company is located, making the argument largely irrelevant.

Corporate Tax Hike

The mayor-elect calculates a rise in state taxes from seven point two five percent and 11.5% on corporate profits would produce about $5bn, a large portion of which would be funneled to New York City. State leaders would have to approve the proposal. State lawmakers have in the past backed comparable ideas, but the governor opposes increasing levies.

However, the governor supports childcare for all, a very popular proposal because childcare is widely viewed as cost-prohibitive, said an expert. It would be difficult for centrist lawmakers to “oppose passing a historical program”, he added. “No one argues ‘We shouldn’t do anything to make childcare cheaper.’”

The missing element, he said, has been a leader like Mamdani who says: “Yes, it costs money, and we’re gonna raise taxes to make it happen.”

Increasing Taxes on the Wealthy

The proposal calls for generating $4bn with a 2% increase on those earning above one million dollars annually. Although it’s a city tax, the state government must approve the increase, and the idea is generally opposed by moderate Democrats.

But there is a political pathway, he said. Increasing taxes on the wealthy is broadly popular and, as with the corporate tax increase, using the proceeds to fund favored initiatives helps to promote in the state capital.

Rent Freeze

Regarding expense, a rent freeze on regulated housing is the easiest to enforce – it’s nearly free. But, a halt must be approved by the housing panel, and there might not exist enough support on it until Mamdani appoints members with his own appointments.

Fare-Free and Efficient Transit

The plan estimates free buses will require at least $700m, which factors in an fare-dodging percentage of forty-eight percent. Observers suggest Mamdani could likely cover the cost by optimizing or reducing additional services in the city’s one hundred sixteen billion dollar city budget.

Publicly Run Food Markets

A trial initiative for several city-owned grocery stores that would be established in neglected “food deserts” is projected at $60m and could also be funded by adjusting focus in the one hundred sixteen billion dollar spending plan.

Building Affordable Housing Units

Numerous people to the right of Mamdani have written off the proposal to invest approximately $100bn building two hundred thousand affordable units over a decade, largely because it would necessitate substantial borrowing. He said those opposing this aspect largely overlook that the initiative is not to take on one hundred billion dollars immediately – the liability would be accumulated and paid down in tranches over multiple administrations.

He emphasized the proposal does not call for no-cost homes, but affordable housing that would produce income to pay down loans. Moreover, the projects could partially be privately financed.

“This is how the proposal is feasible,” the expert 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 additional variables. Financing is the major uncertainty – will the corporate and wealth taxes pass Albany? An expert said he expected some compromise, as often happens with big proposals.

“The things that Mamdani promised will probably get a haircut,” the expert said. “Furthermore the governor’s stated opposition to tax increases may just confront practical limits – she likely cannot achieve the things she wants on the expenditure front without some flexibility on the revenue side.”