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Bold pledges to make the metropolis less expensive for New Yorkers catapulted progressive candidate Zohran Mamdani to his unlikely win on election day. Among them are fare-free transit, childcare for all, and a large-scale increase in affordable homes.

However, making the city more affordable for residents is an expensive public undertaking, and numerous financial experts and elected officials to Mamdani’s conservative side argue he faces numerous hurdles to meaningfully deliver on his key proposals.

Adding complexity to the situation is the federal administration, which will almost certainly pull funding for the city in an effort to sabotage Mamdani and open up funding gaps that make it more difficult to pay for new priorities.

Additionally, the city must secure state government authorization to adjust many revenue streams. An analyst pointed to the state legislature blocking the municipality from raising dog licensing fees in a prior year due to a disagreement between the incumbent at the time and a lawmaker.

“The dramatic example 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,” he said.

Nonetheless, he and other experts highlight tailwinds: Mamdani’s ideas are widely supported and would address fundamental issues. The Democratic party now have large majorities in the state government, and several identify financial and political pathways to making the proposals a success.

In what ways might Mamdani pay for his bold program? Here’s a detailed look by funding method and initiative.

Generating Revenue

The Mamdani campaign projects it could generate about $10bn by raising the business tax, levies on the wealthy, and current government revenues.

Detractors say businesses and the high-earners will relocate, but this is contradicted by credible research. Additionally, the business levy is on profits made in the region regardless of where a business is located, rendering the argument largely irrelevant.

Corporate Tax Hike

Mamdani calculates a state tax increase between 7.25% and eleven point five percent on business earnings would produce around $5bn, a large portion of which would be directed to the city. The legislature and governor would have to approve the proposal. Legislative leaders have in the past backed similar proposals, but the state executive is against increasing levies.

Yet, 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 “resist enacting a historical initiative”, he added. “Nobody argues ‘Nothing should be done to reduce childcare costs.’”

The missing element, the expert explained, has been a figure like Mamdani who says: “Yes, it requires funding, and we’re gonna increase revenue to make it happen.”

Raising Levies on the Wealthy

Mamdani’s plan calls for generating $4bn with a 2% increase on those making above $1m each year. Though it’s a municipal levy, the state government must approve the increase, and the idea is generally resisted by moderate lawmakers.

However there is a feasible route, he said. Increasing taxes on the wealthy is widely accepted and, similar to the corporate tax increase, allocating the proceeds to support favored initiatives makes it easier to sell in Albany.

Rent Freeze

Regarding cost, a pause on rent hikes on regulated housing is the simplest to implement – it’s nearly free. But, a halt must be authorized by the housing panel, and there might not exist enough support on it before Mamdani appoints members with his own appointments.

Free and Fast Transit

Mamdani estimates fare-free transit will require a minimum of $700m, which includes an fare-dodging percentage of forty-eight percent. Observers suggest Mamdani could likely pay for the cost by streamlining or cutting other programs in the city’s $116bn city budget.

Publicly Run Food Markets

A pilot program for five public food markets that would be built in neglected “areas lacking food access” is estimated at sixty million dollars and could also be paid for by shifting focus in the $116bn budget.

Constructing Affordable Housing Units

Numerous people to the conservative side of Mamdani have dismissed the proposal to spend approximately one hundred billion dollars building 200,000 affordable units over 10 years, mainly because it would require massive debt. He clarified those arguing against this aspect largely miss that the initiative is not to take on one hundred billion dollars at once – the debt would be accumulated and paid down in tranches over several government terms.

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.

“That’s the way the plan adds up,” the expert concluded.

Childcare for All

Implementing universal childcare would require from $2.5bn and twelve billion dollars by many projections, based on whether it is a municipal or state initiative and additional variables. Funding is the big question mark – can the corporate and wealth taxes be approved in the state capital? An expert commented he expected negotiated adjustments, as often happens with big proposals.

“The things that Mamdani pledged will probably get a haircut,” he remarked. “Furthermore the state leader’s expressed opposition to tax increases could face reality – she probably cannot achieve the things she wants on the expenditure front without compromise on the revenue side.”