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Bold promises to make the metropolis less expensive for residents propelled progressive candidate Zohran Mamdani to his surprising victory on election day. Among them are fare-free transit, childcare for all, and a massive increase in low-cost housing.

However, making the urban center more affordable for residents is an expensive government task, and many financial experts and politicians to Mamdani’s conservative side say he confronts too many hurdles to meaningfully deliver on his key proposals.

Further complicating the situation is the national government, which will likely pull funding for New York in an attempt to undermine Mamdani and create funding gaps that complicate efforts to fund new priorities.

Additionally, the city must secure state legislature approval to modify several revenue streams. An analyst cited the state legislature stopping the municipality from increasing pet registration costs in a prior year due to a disagreement between the incumbent at the time and a state representative.

“A striking way of stating the issue is the City cannot increase dog licensing fees without state approval, and that held true previously, and it remains the case today,” he noted.

Nonetheless, he and other experts highlight tailwinds: Mamdani’s proposals are widely supported and would address fundamental issues. Democrats now have significant control in the legislature, and several see financial and political pathways to making the proposals reality.

In what ways might Mamdani pay for his bold agenda? We broke it down by funding method and initiative.

Raising Income

The Mamdani campaign projects it could generate about ten billion dollars by raising the business tax, levies on the wealthy, and current government revenues.

Detractors claim companies and the high-earners will relocate, but that is disputed by credible research. Additionally, the corporate tax is on earnings made in the state regardless of where a company is based, rendering the argument at least partially moot.

Corporate Tax Hike

The mayor-elect estimates a state tax increase from seven point two five percent and 11.5% on corporate profits would produce around five billion dollars, a large portion of which would be directed to the city. The legislature and governor would have to authorize the proposal. Legislative leaders have in the past supported similar proposals, but the governor is against increasing levies.

Yet, the state leader backs childcare for all, a very popular proposal because child services is widely viewed as cost-prohibitive, said an expert. It would be difficult for moderate Democrats to “resist passing a landmark program”, he added. “No one argues ‘We shouldn’t do anything to reduce childcare costs.’”

The missing element, he explained, has been a figure like Mamdani who says: “Yeah, it costs money, and we will increase revenue to make it happen.”

Increasing Levies on the Affluent

Mamdani’s plan aims to raising $4bn with a 2% hike on those earning more than one million dollars each year. Though it’s a municipal levy, the state government must authorize the increase, and the idea is typically opposed by centrist Democrats.

However there is a feasible route, he noted. Raising revenue on the rich is widely accepted and, as with the business tax hike, using the funds to support popular programs helps to sell in Albany.

Rent Freeze

In terms of expense, a pause on rent hikes on rent-controlled apartments is the easiest to enforce – it’s nearly free. However, a freeze must be approved by the rent guidelines board, and there might not exist sufficient backing on it until Mamdani fills it with his own appointments.

Fare-Free and Efficient Buses

Mamdani estimates free buses will require at least $700m, which factors in an evasion rate of forty-eight percent. Analysts suggest Mamdani could likely pay for the cost by optimizing or cutting additional services in the city’s $116bn city budget.

City-Owned Grocery Stores

A trial initiative for five public food markets that would be established in underserved “food deserts” is estimated at $60m and could additionally be paid for by shifting priorities in the $116bn spending plan.

Building Affordable Housing Units

Many people to the right of Mamdani have dismissed the plan to invest approximately $100bn building 200,000 low-income homes over a decade, mainly because it would require massive debt. The expert said those opposing this point largely overlook that the initiative is not to take on $100bn at once – the debt would be accrued and repaid in phases over several government terms.

He also stressed the plan does not call for no-cost homes, but affordable housing that would generate revenue to pay down debt. Moreover, the projects could partially be privately financed.

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

Universal Childcare

Establishing childcare access for all would require from two point five billion dollars and $12bn by most estimates, based on whether it is a city or state program and additional variables. Financing is the major uncertainty – will the corporate and wealth taxes pass Albany? An expert said he anticipated negotiated adjustments, as is typical with big proposals.

“The things that Mamdani pledged will likely be scaled back,” the expert said. “Furthermore the governor’s expressed opposition to revenue hikes may just confront practical limits – she likely cannot achieve the things she desires on the spending side without compromise on the tax side.”