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Bold promises to transform the metropolis more affordable for New Yorkers catapulted democratic socialist Zohran Mamdani to his surprising win on Tuesday. Included are fare-free transit, childcare for all, and a massive increase in affordable homes.

However, making the city more affordable for inhabitants is an costly public undertaking, and many financial experts and politicians to Mamdani’s right argue he confronts too many hurdles to meaningfully deliver on his key proposals.

Further complicating the situation is the federal administration, which will likely withhold financial support for the city in an attempt to undermine Mamdani and create budget holes that complicate efforts to pay for fresh initiatives.

Additionally, the city must secure state government approval to modify several income sources. One expert pointed to the state legislature stopping the city from increasing pet registration costs in 2014 due to a dispute between the then mayor and a lawmaker.

“The dramatic example of stating the issue is New York City can’t raise dog licensing fees without state legislature approval, and it was true then, and it remains the case today,” he noted.

However, he and other experts highlight favorable conditions: Mamdani’s proposals are widely supported and would address fundamental issues. The Democratic party now have significant control in the state government, and some see economic and political pathways to implementing the plans a success.

In what ways could Mamdani pay for his ambitious program? Here’s a detailed look by revenue source and initiative.

Raising Income

His team estimates it could raise about ten billion dollars by increasing the corporate tax rate, levies on the affluent, and current government revenues.

Detractors claim businesses and the wealthy will relocate, but that is contradicted by credible research. Additionally, the corporate tax is on profits made in the region regardless of where a business is located, making the argument largely moot.

Corporate Tax Increase

The mayor-elect calculates a rise in state taxes between 7.25% and eleven point five percent on business earnings would produce around $5bn, much of which would be directed to the city. State leaders would have to approve the proposal. State lawmakers have previously backed comparable ideas, but the governor is against raising taxes.

Yet, the state leader supports universal childcare, a highly favored initiative because childcare is commonly seen as cost-prohibitive, said one policy director. It would be difficult for moderate Democrats to “resist enacting a landmark initiative”, he continued. “Nobody says ‘Nothing should be done to make childcare cheaper.’”

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

Raising Levies on the Wealthy

Mamdani’s plan aims to raising four billion dollars with a two percent increase on those making above one million dollars each year. Though it’s a city tax, the state legislature must authorize the rise, and the idea is generally opposed by centrist Democrats.

But there is a feasible route, the expert noted. Raising revenue on the wealthy is widely accepted and, similar to the corporate tax increase, using the funds to fund popular programs helps to sell in the state capital.

Halt on Rent Increases

In terms of cost, a rent freeze on rent-controlled apartments is the simplest to enforce – it’s nearly free. However, a halt must be authorized by the rent guidelines board, and there may not be sufficient backing on it until Mamdani fills it with his own appointments.

Fare-Free and Efficient Buses

Mamdani estimates fare-free transit will require at least seven hundred million dollars, which factors in an evasion rate of 48%. Observers suggest Mamdani could likely cover the expense by streamlining or cutting other programs in the city’s $116bn annual spending plan.

Publicly Run Grocery Stores

A pilot program for several city-owned grocery stores that would be established in underserved “areas lacking food access” is estimated at $60m and could also be funded by shifting priorities in the one hundred sixteen billion dollar spending plan.

Constructing Low-Cost Homes Properties

Many people to the right of Mamdani have written off the plan to spend approximately $100bn building 200,000 low-income homes over 10 years, largely because it would necessitate substantial borrowing. He clarified those arguing against this aspect largely miss that the initiative is does not involve to take on one hundred billion dollars at once – the liability would be accumulated and repaid in tranches over several government terms.

He emphasized the proposal does not call for no-cost homes, but cost-effective residences that would produce income to reduce loans. Moreover, the projects could partially be funded by private investment.

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

Universal Childcare

Establishing childcare access for all would require between $2.5bn and twelve billion dollars by most estimates, depending on whether it is a municipal or state initiative and other factors. Financing is the big question mark – can the corporate and wealth taxes be approved in the state capital? An expert said he anticipated some compromise, as often happens with large-scale plans.

“Proposals that Mamdani pledged will probably get a haircut,” he said. “And the governor’s stated resistance to revenue hikes could confront practical limits – she likely can’t get the things she desires on the spending side without compromise on the tax side.”