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Ambitious pledges to make the city less expensive for New Yorkers catapulted progressive candidate Zohran Mamdani to his unlikely victory on Tuesday. Included are free buses, childcare for all, and a massive increase in affordable homes.

However, making the urban center more affordable for inhabitants is an costly public undertaking, and many economists and elected officials to Mamdani’s right argue he faces numerous hurdles to effectively follow through on his signature ideas.

Adding complexity to the situation is the national government, which will likely withhold financial support for New York in an attempt to sabotage Mamdani and open up budget holes that complicate efforts to pay for fresh initiatives.

Additionally, the city must secure state government authorization to modify many revenue streams. One expert pointed to the state assembly blocking the city from raising pet registration costs in 2014 due to a disagreement between the incumbent at the time and a lawmaker.

“The dramatic example of stating the issue is the City cannot increase pet permit charges without state legislature approval, and it was true then, and it remains the case today,” the expert noted.

Nonetheless, analysts highlight favorable conditions: Mamdani’s ideas are widely supported and would address basic problems. Democrats now have large majorities in the state government, and several see economic and political pathways to implementing the plans reality.

In what ways could Mamdani pay for his ambitious agenda? We broke it down by funding method and proposal.

Raising Income

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

Detractors claim businesses and the wealthy will relocate, but that is disputed by reliable studies. Moreover, the business levy is on earnings made in the region no matter where a business is based, making the argument at least partially moot.

Corporate Tax Increase

Mamdani estimates a rise in state taxes from 7.25% and eleven point five percent on corporate profits would generate around $5bn, a large portion of which would be directed to New York City. State leaders would have to authorize the plan. Legislative leaders have previously backed comparable ideas, but the governor is against increasing levies.

Yet, the state leader supports childcare for all, a highly favored proposal because childcare is commonly seen as too expensive, said one policy director. It would be difficult for moderate Democrats to “oppose enacting a landmark initiative”, he continued. “No one argues ‘Nothing should be done to reduce childcare costs.’”

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

Raising Levies on the Affluent

Mamdani’s plan calls for raising four billion dollars with a two percent increase on those making more than $1m annually. Although it’s a municipal levy, the state government must approve the increase, and the proposal is generally resisted by moderate Democrats.

However there is a feasible route, the expert noted. Increasing revenue on the rich is broadly popular and, as with the corporate tax increase, allocating the funds to support favored initiatives helps to promote in the state capital.

Rent Freeze

In terms of cost, a rent freeze on regulated housing is the easiest to implement – it’s nearly free. But, a freeze must be approved by the rent guidelines board, and there may not be enough support on it before Mamdani fills it with his own appointments.

Free and Fast Transit

Mamdani estimates free buses will require a minimum of seven hundred million dollars, which factors in an evasion rate of 48%. Analysts suggest Mamdani could probably pay for the expense by optimizing or reducing additional services in the city’s one hundred sixteen billion dollar annual spending plan.

City-Owned Grocery Stores

A pilot program for five public food markets that would be established in underserved “food deserts” is projected at sixty million dollars and could additionally be funded by shifting focus in the one hundred sixteen billion dollar budget.

Constructing Affordable Housing Properties

Many commentators to the conservative side of Mamdani have written off the proposal to spend about $100bn developing two hundred thousand affordable units over a decade, largely because it would necessitate substantial borrowing. The expert said those arguing against this point largely overlook that the initiative is not to take on one hundred billion dollars at once – the debt would be accumulated and repaid in phases over several government terms.

He also stressed the plan does not call for no-cost homes, but cost-effective residences that would generate revenue to reduce debt. Furthermore, the developments could partially be funded by private investment.

“That’s the way the proposal adds up,” he said.

Childcare for All

Establishing universal childcare would cost between $2.5bn and twelve billion dollars by many projections, based on whether it is a city or state program and other factors. Financing is the major uncertainty – will the business and high-earner levies pass the state capital? One analyst commented he anticipated negotiated adjustments, as is typical with big proposals.

“Proposals that Mamdani promised will likely get a haircut,” he said. “Furthermore the state leader’s stated opposition to revenue hikes may just face reality – she probably can’t get the things she desires on the spending side without compromise on the revenue side.”