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Bold promises to make the metropolis less expensive for New Yorkers catapulted democratic socialist Zohran Mamdani to his unlikely win on election day. Included are free buses, childcare for all, and a massive increase in affordable homes.

However, turning the city more affordable for residents is an expensive government task, and many financial experts and elected officials to Mamdani’s right say he faces numerous obstacles to meaningfully deliver on his signature ideas.

Further complicating matters is the national government, which will almost certainly withhold financial support for New York in an attempt to undermine Mamdani and open up funding gaps that make it more difficult to pay for fresh initiatives.

Additionally, New York City must get state government approval to modify several revenue streams. One expert cited the state legislature stopping the municipality from increasing dog licensing fees in 2014 due to a dispute between the then mayor and a state representative.

“The dramatic way 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 tailwinds: Mamdani’s ideas are very popular and would address fundamental issues. The Democratic party now have large majorities in the legislature, and several identify economic and political pathways to implementing the proposals a success.

In what ways might Mamdani pay for his ambitious agenda? We broke it down by revenue source and initiative.

Generating Revenue

The Mamdani campaign estimates it could generate about ten billion dollars by increasing the corporate tax rate, levies on the affluent, and current government revenues.

Critics claim businesses and the high-earners will move away, but that is disputed by reliable studies. Moreover, the corporate tax is on earnings made in the region no matter where a business is based, making the point at least partially moot.

Business Levy Increase

The mayor-elect estimates a state tax increase between seven point two five percent and eleven point five percent on business earnings would produce about five billion dollars, much of which would be directed to the city. State leaders would have to authorize the proposal. State lawmakers have previously backed comparable ideas, but the governor opposes raising taxes.

Yet, the governor backs universal childcare, a highly favored initiative because child services is commonly seen as cost-prohibitive, stated one policy director. It would be challenging for moderate Democrats to “oppose passing a landmark program”, he continued. “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 costs money, and we will increase revenue to get it done.”

Increasing Taxes on the Wealthy

Mamdani’s plan calls for raising $4bn with a 2% hike on those making above one million dollars annually. Though it’s a city tax, the state government must authorize the increase, and the proposal is typically opposed by centrist lawmakers.

However there is a feasible route, the expert noted. Raising taxes on the rich is broadly popular and, as with the business tax hike, allocating the funds to support popular programs makes it easier to promote in Albany.

Rent Freeze

In terms of expense, a pause on rent hikes on regulated housing is the easiest to implement – it’s nearly free. But, a freeze must be approved by the housing panel, and there might not exist sufficient backing on it until Mamdani appoints members with his preferred candidates.

Fare-Free and Efficient Transit

Mamdani estimates fare-free transit will require a minimum of seven hundred million dollars, which factors in an fare-dodging percentage of 48%. Observers suggest Mamdani could likely pay for the expense by streamlining or reducing additional services in the municipal $116bn annual spending plan.

Publicly Run Food Markets

A trial initiative for several city-owned grocery stores that would be built in neglected “areas lacking food access” is projected at sixty million dollars and could also be paid for by shifting priorities in the one hundred sixteen billion dollar budget.

Building Low-Cost Homes Properties

Many commentators to the conservative side of Mamdani have written off the proposal to spend approximately one hundred billion dollars building 200,000 low-income homes over 10 years, mainly because it would require massive debt. The expert clarified those opposing this aspect mostly overlook that the plan is does not involve to take on $100bn at once – the liability would be accrued and paid down in tranches over multiple administrations.

He also stressed the plan is not for no-cost homes, but affordable housing that would generate revenue to reduce debt. Furthermore, the developments could in part be funded by private investment.

“This is how the plan is feasible,” the expert said.

Universal Childcare

Implementing childcare access for all would require from two point five billion dollars and twelve billion dollars by most estimates, depending on whether it is a municipal or state initiative and additional variables. Financing is the big question mark – can the corporate and wealth taxes be approved in the state capital? An expert commented he anticipated negotiated adjustments, as often happens with large-scale plans.

“The things that Mamdani pledged will likely be scaled back,” the expert said. “Furthermore the state leader’s expressed resistance to revenue hikes may just face reality – she probably can’t get the things she wants on the spending side without compromise on the tax side.”