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Bold promises to transform the city less expensive for New Yorkers propelled democratic socialist Zohran Mamdani to his surprising victory on election day. Included are fare-free transit, universal childcare, and a massive increase in low-cost housing.

However, turning the city more affordable for residents is an costly public undertaking, and many economists and elected officials to Mamdani’s right say he faces too many hurdles 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 effort to sabotage Mamdani and create funding gaps that make it more difficult to pay for new priorities.

Additionally, the city must get state legislature authorization to adjust many revenue streams. One expert cited the state assembly blocking the city from raising dog licensing fees in a prior year due to a dispute between the incumbent at the time and a lawmaker.

“A striking way of putting it is the City cannot increase pet permit charges without state legislature approval, and that held true previously, and it’s true now,” the expert noted.

Nonetheless, analysts point to favorable conditions: Mamdani’s proposals are widely supported and would address fundamental issues. Democrats now have large majorities in the state government, and some identify financial and political pathways to making the plans a success.

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

Generating Revenue

His team projects it could raise approximately ten billion dollars by raising the business tax, levies on the affluent, and existing fee and tax collections.

Detractors say companies and the wealthy will move away, but this is disputed by reliable studies. Moreover, the corporate tax is on earnings made in the region no matter where a business is located, rendering the argument largely irrelevant.

Corporate Tax Hike

Mamdani calculates a state tax increase between seven point two five percent and 11.5% on corporate profits would generate around five billion dollars, much of which would be funneled to the city. State leaders would have to authorize the plan. Legislative leaders have in the past backed similar proposals, but the state executive is against increasing levies.

Yet, the state leader backs childcare for all, a highly favored initiative because childcare is widely viewed as cost-prohibitive, stated an expert. It would be difficult for centrist lawmakers to “resist enacting a landmark initiative”, he added. “No one argues ‘We shouldn’t do anything to reduce childcare costs.’”

What’s been lacking, he explained, has been a leader like Mamdani who declares: “Yes, it costs money, and we will raise taxes to make it happen.”

Increasing Levies on the Wealthy

The proposal aims to generating $4bn with a two percent increase on those earning above one million dollars each year. Though it’s a municipal levy, the state government must approve the increase, and the idea is typically opposed by moderate Democrats.

However there is a political pathway, he noted. Raising taxes on the wealthy is broadly popular and, as with the corporate tax increase, using the funds to fund favored initiatives makes it easier to promote in Albany.

Rent Freeze

Regarding cost, a pause on rent hikes on regulated housing is the simplest to implement – it’s minimally costly. But, a freeze must be authorized by the housing panel, and there might not exist enough support on it before Mamdani fills it with his preferred candidates.

Free and Fast Transit

The plan estimates fare-free transit will require a minimum of seven hundred million dollars, which includes an evasion rate of 48%. Analysts say Mamdani could probably cover the cost by optimizing or cutting other programs in the city’s one hundred sixteen billion dollar city budget.

City-Owned Food Markets

A trial initiative for five public food markets that would be established in underserved “areas lacking food access” is projected at sixty million dollars and could additionally be paid for by adjusting priorities in the $116bn budget.

Building Affordable Housing Units

Many commentators to the right of Mamdani have dismissed the proposal to invest about $100bn developing 200,000 low-income homes over 10 years, largely because it would require massive debt. The expert clarified those opposing this aspect mostly overlook that the plan is not to borrow $100bn at once – the liability would be accrued and paid down in phases over several government terms.

He emphasized the proposal does not call for no-cost homes, but cost-effective residences that would generate revenue to reduce loans. Moreover, the projects could in part be privately financed.

“That’s the way the plan is feasible,” the expert concluded.

Childcare for All

Establishing childcare access for all would require from $2.5bn and $12bn by most estimates, depending on whether it is a municipal or state initiative and additional variables. Funding is the big question mark – will the corporate and wealth taxes pass the state capital? One analyst said he anticipated some compromise, as is typical with large-scale plans.

“The things that Mamdani pledged will likely be scaled back,” the expert remarked. “Furthermore the state leader’s expressed resistance to tax increases could confront practical limits – she likely cannot achieve the things she desires on the expenditure front without some flexibility on the revenue side.”