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Bold promises to transform the city more affordable for New Yorkers propelled progressive candidate Zohran Mamdani to his unlikely win on election day. Among them are free buses, universal childcare, and a large-scale increase in affordable homes.

However, turning the urban center more affordable for residents is an costly government task, and many economists and elected officials to Mamdani’s right say he confronts numerous obstacles to meaningfully deliver on his signature ideas.

Further complicating the situation is the federal administration, which will almost certainly pull funding for the city in an effort to sabotage Mamdani and create funding gaps that complicate efforts to fund new priorities.

Additionally, the city must secure state government approval to modify several revenue streams. An analyst pointed to the state legislature blocking the municipality from raising pet registration costs in 2014 due to a dispute between the incumbent at the time and a lawmaker.

“A striking example of putting it is New York City cannot increase dog licensing fees without state approval, and that held true previously, and it’s true now,” the expert said.

Nonetheless, he and other experts highlight tailwinds: Mamdani’s ideas are very popular and would address basic problems. The Democratic party now hold significant control in the legislature, and some identify economic and viable routes to implementing the proposals reality.

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

Generating Income

His team estimates it could raise approximately $10bn by increasing the business tax, taxes on the affluent, and current government revenues.

Critics claim companies and the wealthy will move away, but this is contradicted by credible research. Moreover, the corporate tax is on profits made in the state no matter where a business is based, making the argument at least partially moot.

Business Levy Increase

The mayor-elect estimates a state tax increase from seven point two five percent and eleven point five percent on business earnings would produce about $5bn, a large portion of which would be funneled to the city. The legislature and governor would have to approve the plan. State lawmakers have previously backed similar proposals, but the governor opposes raising taxes.

Yet, the governor supports childcare for all, a highly favored proposal because child services is widely viewed as too expensive, said an expert. It would be difficult for moderate Democrats to “resist enacting a historical initiative”, he continued. “No one argues ‘Nothing should be done to reduce childcare costs.’”

What’s been lacking, he explained, has been a leader like Mamdani who says: “Yeah, it requires funding, and we will increase revenue to get it done.”

Raising Taxes on the Wealthy

The proposal aims to raising $4bn with a 2% hike on those making more than $1m annually. Although it’s a city tax, the state legislature must authorize the increase, and the proposal is typically opposed by moderate lawmakers.

But there is a political pathway, the expert noted. Raising revenue on the rich is widely accepted and, similar to the corporate tax increase, using the proceeds to support favored initiatives helps to promote in Albany.

Halt on Rent Increases

Regarding cost, a pause on rent hikes on rent-controlled apartments is the simplest to enforce – it’s minimally costly. However, a halt must be approved by the rent guidelines board, and there may not be enough support on it until Mamdani fills it with his own appointments.

Fare-Free and Efficient Buses

The plan estimates free buses will cost at least $700m, which factors in an evasion rate of 48%. Analysts suggest Mamdani could probably cover the cost by streamlining or reducing additional services in the city’s $116bn annual spending plan.

City-Owned Grocery Stores

A pilot program for several public food markets that would be established in neglected “areas lacking food access” is projected at $60m and could also be funded by adjusting priorities in the $116bn spending plan.

Constructing Affordable Housing Properties

Numerous commentators to the right of Mamdani have dismissed the proposal to spend about one hundred billion dollars developing two hundred thousand affordable units over 10 years, mainly because it would necessitate substantial borrowing. The expert said those opposing this point largely miss that the plan is not to borrow one hundred billion dollars at once – the debt would be accrued and paid down in tranches over multiple administrations.

He also stressed the proposal does not call for free housing, but cost-effective residences that would generate revenue to pay down loans. Furthermore, the developments could in part be privately financed.

“This is how the plan adds up,” he said.

Childcare for All

Establishing childcare access for all would require from two point five billion dollars and twelve billion dollars by most estimates, depending on whether it is a municipal or state initiative and other factors. Financing is the major uncertainty – will the corporate and wealth taxes pass the state capital? An expert commented he expected negotiated adjustments, as is typical with big proposals.

“Proposals that Mamdani promised will probably be scaled back,” he remarked. “And the state leader’s expressed resistance to revenue hikes could confront practical limits – she likely cannot achieve the objectives she desires on the expenditure front without compromise on the revenue side.”