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Ambitious promises to make the city less expensive for New Yorkers catapulted progressive candidate Zohran Mamdani to his surprising victory on Tuesday. Among them are fare-free transit, universal childcare, and a large-scale expansion in affordable homes.

However, turning the urban center cost-effective for inhabitants is an expensive public undertaking, and many economists and politicians to Mamdani’s right say he confronts numerous obstacles to meaningfully deliver on his signature ideas.

Adding complexity to the situation is the federal administration, which will likely withhold financial support for the city in an effort to undermine Mamdani and create budget holes that complicate efforts to fund new priorities.

Additionally, the city must secure state legislature authorization to modify many income sources. One expert cited the state assembly blocking the municipality from increasing pet registration costs in 2014 due to a dispute between the then mayor and a lawmaker.

“The dramatic way of putting it is the City can’t raise dog licensing fees without state approval, and it was true then, and it remains the case today,” he said.

However, he and other experts highlight tailwinds: Mamdani’s proposals are widely supported and would address basic problems. The Democratic party now hold significant control in the legislature, and some see financial and political pathways to implementing the plans a success.

In what ways could Mamdani finance his bold program? We broke it down by revenue source and proposal.

Generating Income

The Mamdani campaign projects it could raise approximately $10bn by increasing the business tax, levies on the affluent, and current government revenues.

Detractors claim companies and the high-earners will move away, but that is contradicted by credible research. Additionally, the business levy is on profits made in the region no matter where a company is based, rendering the point at least partially moot.

Corporate Tax Increase

The mayor-elect estimates a state tax increase between seven point two five percent and 11.5% on corporate profits would produce about five billion dollars, a large portion of which would be directed to New York City. The legislature and governor would have to approve the plan. Legislative leaders have in the past supported comparable ideas, but the state executive is against increasing levies.

Yet, the governor backs childcare for all, a highly favored initiative because child services is widely viewed as cost-prohibitive, said one policy director. It would be challenging for moderate Democrats to “oppose passing a landmark program”, he continued. “No one argues ‘Nothing should be done to reduce childcare costs.’”

What’s been lacking, he explained, has been a figure like Mamdani who declares: “Yeah, it costs money, and we will increase revenue to get it done.”

Increasing Levies on the Affluent

The proposal aims to generating four billion dollars with a two percent increase on those making more than one million dollars each year. Though it’s a city tax, the state government must approve the increase, and the proposal is typically resisted by moderate lawmakers.

But there is a feasible route, he noted. Increasing revenue on the wealthy is broadly popular and, as with the corporate tax increase, allocating the funds to support popular programs makes it easier to promote in Albany.

Halt on Rent Increases

In terms of cost, a rent freeze on regulated housing is the simplest to enforce – it’s minimally costly. But, a halt must be approved by the housing panel, and there might not exist sufficient backing on it until Mamdani appoints members with his own appointments.

Free and Fast Transit

Mamdani estimates fare-free transit will require a minimum of $700m, which factors in an evasion rate of 48%. Observers say Mamdani could likely pay for the cost by streamlining or cutting additional services in the city’s one hundred sixteen billion dollar annual spending plan.

Publicly Run Food Markets

A pilot program for five city-owned grocery stores that would be established in underserved “areas lacking food access” is estimated at $60m and could also be paid for by shifting focus in the $116bn budget.

Building Low-Cost Homes Properties

Many people to the conservative side of Mamdani have dismissed the proposal to invest about $100bn building 200,000 low-income homes over 10 years, largely because it would necessitate massive debt. The expert clarified those arguing against this aspect mostly overlook that the initiative is not to borrow one hundred billion dollars at once – the liability would be accrued and repaid in phases over multiple administrations.

He also stressed the proposal is not 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 adds up,” he said.

Childcare for All

Implementing universal childcare would cost from two point five billion dollars and twelve billion dollars by many projections, depending on whether it is a municipal or state initiative and additional variables. Financing is the big question mark – will the business and high-earner levies be approved in the state capital? One analyst commented he expected some compromise, as is typical with large-scale plans.

“Proposals that Mamdani promised will likely get a haircut,” he remarked. “Furthermore the governor’s stated opposition to revenue hikes could confront practical limits – she probably can’t get the things she desires on the spending side without some flexibility on the tax side.”