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Bold pledges to make the city less expensive for residents propelled progressive candidate Zohran Mamdani to his unlikely victory on Tuesday. Among them are free buses, childcare for all, and a massive expansion in low-cost housing.

However, turning the urban center more affordable for inhabitants is an costly government task, and numerous economists and elected officials to Mamdani’s conservative side argue he confronts numerous hurdles to meaningfully deliver on his key proposals.

Further complicating the situation is the federal administration, which will almost certainly pull funding for New York in an attempt to sabotage Mamdani and open up budget holes that make it more difficult to pay for new priorities.

Additionally, the city must get state government authorization to modify several income sources. One expert cited the state legislature blocking the municipality from raising dog licensing fees in 2014 due to a dispute between the then mayor and a lawmaker.

“The dramatic way of putting it is New York City can’t raise dog licensing fees without state approval, and it was true then, and it’s true now,” he said.

Nonetheless, analysts highlight favorable conditions: Mamdani’s proposals are very popular and would solve fundamental issues. The Democratic party now have large majorities in the state government, and some see financial and political pathways to making the plans reality.

In what ways could Mamdani pay for his bold program? We broke it down by revenue source and proposal.

Generating Income

His team projects it could raise approximately ten billion dollars by raising the business tax, levies on the wealthy, and current government revenues.

Critics claim companies and the high-earners will move away, but this is contradicted by credible research. Moreover, the business levy is on earnings made in the region regardless of where a company is located, rendering the point at least partially irrelevant.

Corporate Tax Increase

The mayor-elect calculates a rise in state taxes from 7.25% and eleven point five percent on corporate profits would produce around five billion dollars, a large portion of which would be directed to New York City. The legislature and governor would have to authorize the proposal. Legislative leaders have in the past supported comparable ideas, but the governor is against increasing levies.

However, the state leader backs universal childcare, a very popular proposal because childcare is commonly seen as cost-prohibitive, said one policy director. It would be difficult for moderate Democrats to “oppose enacting a landmark initiative”, he added. “Nobody argues ‘Nothing should be done to reduce childcare costs.’”

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

Raising Taxes on the Affluent

Mamdani’s plan calls for generating $4bn with a two percent hike on those making more than one million dollars annually. Though it’s a city tax, the state government must approve the increase, and the proposal is generally resisted by moderate Democrats.

But there is a feasible route, he noted. Increasing revenue on the rich is broadly popular and, as with the corporate tax increase, using the proceeds to fund popular programs helps to sell in the state capital.

Halt on Rent Increases

Regarding expense, a rent freeze on rent-controlled apartments is the easiest to enforce – it’s nearly free. However, a halt must be approved by the rent guidelines board, and there might not exist enough support on it until Mamdani appoints members with his preferred candidates.

Free and Fast Buses

Mamdani projects free buses will cost at least seven hundred million dollars, which includes an evasion rate of 48%. Observers say Mamdani could likely pay for the cost by optimizing or reducing other programs in the municipal $116bn city budget.

City-Owned Grocery Stores

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

Building Affordable Housing Units

Numerous people to the right of Mamdani have written off the plan to invest about $100bn building two hundred thousand low-income homes over a decade, largely because it would require substantial debt. He said those arguing against this point mostly overlook that the plan is not to borrow one hundred billion dollars at once – the debt would be accrued and paid down in phases over multiple administrations.

He emphasized the plan does not call for free housing, but cost-effective residences that would produce income to reduce loans. Furthermore, the developments could in part be funded by private investment.

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

Childcare for All

Implementing universal childcare would require from two point five billion dollars and $12bn by most estimates, depending on whether it is a city or state program and other factors. Funding is the major uncertainty – will the corporate and wealth taxes be approved in Albany? An expert commented he anticipated negotiated adjustments, as often happens with large-scale plans.

“Proposals that Mamdani promised will probably be scaled back,” he said. “Furthermore the state leader’s expressed resistance to tax increases may just confront practical limits – she probably cannot achieve the objectives she wants on the spending side without compromise on the tax side.”