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Ambitious pledges to transform the city more affordable for residents propelled progressive candidate Zohran Mamdani to his surprising victory on election day. Included are fare-free transit, universal childcare, and a massive expansion in low-cost housing.

However, making the city more affordable for inhabitants is an expensive government task, and many financial experts and politicians to Mamdani’s right say he confronts too many hurdles to meaningfully deliver on his signature ideas.

Further complicating matters is the national government, which will likely withhold financial support for the city in an effort to sabotage Mamdani and open up funding gaps that complicate efforts to pay for fresh initiatives.

Additionally, New York City must secure state legislature approval to modify several income sources. One expert cited the state assembly stopping the municipality from raising pet registration costs in a prior year due to a dispute between the incumbent at the time and a lawmaker.

“A striking example of stating the issue is the City can’t raise pet permit charges without state legislature approval, and that held true previously, and it’s true now,” the expert said.

However, analysts point to tailwinds: Mamdani’s proposals are very popular and would solve basic problems. Democrats now have large majorities in the legislature, and several see economic and viable routes to implementing the proposals reality.

How might Mamdani pay for his bold program? We broke it down by funding method and proposal.

Raising Revenue

His team estimates it could raise approximately $10bn by increasing the business tax, taxes on the affluent, and existing fee and tax collections.

Critics claim companies and the wealthy will move away, but this is disputed by reliable studies. Additionally, the corporate tax is on earnings made in the state regardless of where a company is based, rendering the point at least partially irrelevant.

Corporate Tax Increase

The mayor-elect calculates a rise in state taxes from 7.25% and 11.5% on corporate profits would generate around $5bn, a large portion of which would be directed to New York City. The legislature and governor would have to authorize the proposal. State lawmakers have previously backed comparable ideas, but the state executive opposes increasing levies.

However, the state leader supports childcare for all, a highly favored proposal because child services is widely viewed as cost-prohibitive, said one policy director. It would be challenging for moderate Democrats to “resist enacting a landmark initiative”, he continued. “Nobody argues ‘We shouldn’t do anything to make childcare cheaper.’”

What’s been lacking, the expert explained, has been a leader like Mamdani who declares: “Yes, it costs money, and we’re gonna raise taxes to get it done.”

Raising Taxes on the Wealthy

The proposal calls for generating $4bn with a two percent hike on those making above one million dollars annually. Though it’s a municipal levy, the state government must approve the rise, and the idea is generally resisted by moderate lawmakers.

However there is a feasible route, the expert noted. Increasing taxes on the wealthy is broadly popular and, similar to the corporate tax increase, allocating the funds to support popular programs makes it easier to promote in Albany.

Halt on Rent Increases

Regarding cost, a rent freeze on regulated housing is the easiest to implement – it’s nearly free. However, a freeze must be approved by the housing panel, and there might not exist enough support on it until Mamdani appoints members with his preferred candidates.

Fare-Free and Efficient Buses

The plan projects fare-free transit will cost a minimum of $700m, which factors in an evasion rate of 48%. Analysts say Mamdani could probably cover the expense by streamlining or cutting other programs in the municipal $116bn annual spending plan.

City-Owned Grocery Stores

A trial initiative for several city-owned grocery stores that would be established in underserved “areas lacking food access” is projected at $60m and could also be paid for by shifting priorities in the $116bn spending plan.

Building Affordable Housing Units

Numerous commentators to the right of Mamdani have dismissed the proposal to spend about one hundred billion dollars building 200,000 affordable units over 10 years, largely because it would require massive borrowing. He clarified those opposing this aspect largely overlook that the initiative is not to borrow $100bn at once – the debt would be accumulated and repaid in tranches over multiple administrations.

He also stressed the proposal is not for free housing, but affordable housing that would produce income to reduce loans. Moreover, the projects could partially be funded by private investment.

“This is how the proposal is feasible,” the expert concluded.

Childcare for All

Establishing childcare access for all would cost from $2.5bn and $12bn by many projections, based on whether it is a municipal or state initiative and other factors. Funding is the major uncertainty – will the corporate and wealth taxes pass Albany? An expert commented he expected some compromise, as is typical with large-scale plans.

“The things that Mamdani pledged will probably be scaled back,” the expert remarked. “And the governor’s stated opposition to tax increases could confront practical limits – she likely can’t get the things she wants on the spending side without some flexibility on the tax side.”