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Bold promises to make the city more affordable for New Yorkers catapulted progressive candidate Zohran Mamdani to his surprising victory on Tuesday. Included are free buses, universal childcare, and a massive increase in affordable homes.

However, turning the city more affordable for inhabitants is an expensive government task, and numerous financial experts and politicians to Mamdani’s conservative side argue he confronts too many hurdles to meaningfully deliver on his key proposals.

Adding complexity to matters is the federal administration, which will likely pull funding for the city in an effort to undermine Mamdani and create budget holes that make it more difficult to pay for fresh initiatives.

Additionally, the city must get state legislature authorization to adjust several revenue streams. One expert pointed to the state assembly stopping the city from increasing pet registration costs in a prior year due to a dispute between the then mayor and a state representative.

“A striking example of putting it is the City can’t raise dog licensing fees without state approval, and that held true previously, and it remains the case today,” he said.

Nonetheless, he and other experts point to favorable conditions: Mamdani’s proposals are widely supported and would solve basic problems. Democrats now have large majorities in the state government, and several see financial and viable routes to implementing the proposals a success.

In what ways could Mamdani pay for his ambitious agenda? We broke it down by revenue source and initiative.

Generating Revenue

The Mamdani campaign estimates it could generate approximately $10bn by raising the corporate tax rate, taxes on the affluent, and current government revenues.

Critics claim businesses and the high-earners will relocate, but that is disputed by reliable studies. Additionally, the business levy is on profits made in the region regardless of where a company is located, rendering the argument at least partially irrelevant.

Business Levy Hike

Mamdani estimates a rise in state taxes from seven point two five percent and eleven point five percent on business earnings would generate around $5bn, much of which would be directed to the city. State leaders would have to authorize the proposal. Legislative leaders have previously backed comparable ideas, but the governor opposes raising taxes.

Yet, the state leader backs childcare for all, a very popular proposal because childcare is commonly seen as too expensive, stated one policy director. It would be challenging for moderate Democrats to “oppose enacting a landmark initiative”, he added. “Nobody says ‘Nothing should be done to make childcare cheaper.’”

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 get it done.”

Increasing Taxes on the Affluent

Mamdani’s plan aims to generating four billion dollars with a 2% hike on those earning more than $1m annually. Though it’s a municipal levy, the state government must approve the increase, and the proposal is generally resisted by centrist Democrats.

But there is a political pathway, the expert noted. Increasing revenue on the rich is widely accepted and, similar to the corporate tax increase, allocating the proceeds to fund favored initiatives helps to sell in the state capital.

Rent Freeze

In terms of expense, a rent freeze on rent-controlled apartments is the easiest to implement – it’s minimally costly. But, a halt must be approved by the rent guidelines board, and there might not exist sufficient backing on it before Mamdani fills it with his preferred candidates.

Fare-Free and Efficient Buses

The plan projects fare-free transit will require a minimum of seven hundred million dollars, which factors in an evasion rate of 48%. Analysts say Mamdani could probably cover the expense by streamlining or cutting other programs in the municipal one hundred sixteen billion dollar city budget.

Publicly Run Food Markets

A trial initiative for several public food markets that would be built in neglected “food deserts” is projected at $60m and could also be paid for by adjusting priorities in the $116bn budget.

Building Low-Cost Homes Units

Many commentators to the right of Mamdani have dismissed the proposal to spend approximately one hundred billion dollars developing two hundred thousand low-income homes over 10 years, mainly because it would necessitate substantial debt. The expert clarified those arguing against this point largely miss that the initiative is does not involve to take on one hundred billion dollars at once – the liability would be accrued and repaid in tranches over several government terms.

He emphasized the proposal does not call for free housing, but cost-effective residences that would generate revenue to pay down debt. Furthermore, the projects could partially be privately financed.

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

Universal Childcare

Implementing childcare access for all would cost from two point five billion dollars and twelve billion dollars by most estimates, based on whether it is a city or state program and additional variables. Financing is the big question mark – will the corporate and wealth taxes be approved in the state capital? An expert said he expected negotiated adjustments, as often happens with large-scale plans.

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