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Ambitious pledges to transform the city less expensive for residents propelled democratic socialist Zohran Mamdani to his surprising win on Tuesday. Among them are fare-free transit, universal childcare, and a massive expansion in low-cost housing.

However, turning the city cost-effective for residents is an costly public undertaking, and many economists and politicians to Mamdani’s right say he confronts numerous obstacles to effectively follow through on his key proposals.

Adding complexity to the situation is the national government, which will almost certainly pull funding for the city in an attempt to undermine Mamdani and open up funding gaps that make it more difficult to pay for new priorities.

Additionally, New York City must secure state government approval to modify several 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 then mayor and a state representative.

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

However, analysts point to favorable conditions: Mamdani’s ideas are widely supported and would solve fundamental issues. The Democratic party now hold significant control in the legislature, and some identify financial and viable routes to making the proposals a success.

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

Generating Revenue

The Mamdani campaign estimates it could raise about ten billion dollars by raising the business tax, taxes on the wealthy, and existing fee and tax collections.

Critics say businesses and the wealthy will relocate, but that is disputed by reliable studies. Additionally, the business levy is on earnings made in the state regardless of where a company is located, making the point at least partially irrelevant.

Corporate Tax Increase

The mayor-elect estimates a state tax increase between 7.25% and 11.5% on corporate profits would generate around $5bn, a large portion of which would be funneled to the city. State leaders would have to authorize the plan. State lawmakers have previously supported comparable ideas, but the governor opposes raising taxes.

Yet, the state leader supports childcare for all, a highly favored initiative because child services is commonly seen as cost-prohibitive, said an expert. It would be challenging for moderate Democrats to “resist passing a historical initiative”, he added. “No one says ‘Nothing should be done to reduce childcare costs.’”

What’s been lacking, he said, has been a figure like Mamdani who declares: “Yeah, it requires funding, and we’re gonna increase revenue to make it happen.”

Raising Levies on the Affluent

Mamdani’s plan calls for raising $4bn with a two percent increase on those earning above one million dollars annually. Though it’s a city tax, the state government must approve the rise, and the idea is generally opposed by moderate lawmakers.

However there is a political pathway, the expert said. Increasing taxes on the wealthy is widely accepted and, as with the business tax hike, using the funds to fund popular programs makes it easier to promote in Albany.

Halt on Rent Increases

In terms of expense, a pause on rent hikes on rent-controlled apartments is the simplest to implement – it’s nearly free. However, a freeze must be approved by the housing panel, and there might not exist enough support on it until Mamdani appoints members with his own appointments.

Fare-Free and Efficient Buses

Mamdani projects fare-free transit will cost a minimum of $700m, which factors in an fare-dodging percentage of forty-eight percent. Observers say Mamdani could likely cover the cost by optimizing or reducing additional services in the city’s one hundred sixteen billion dollar annual spending plan.

City-Owned Food Markets

A pilot program for several city-owned grocery stores that would be built in neglected “food deserts” is projected at $60m and could also be paid for by adjusting priorities in the one hundred sixteen billion dollar spending plan.

Constructing Low-Cost Homes Properties

Numerous commentators to the right of Mamdani have dismissed the plan to invest approximately one hundred billion dollars developing 200,000 affordable units over 10 years, mainly because it would require massive debt. The expert clarified those opposing this aspect largely overlook that the plan is does not involve to take on $100bn at once – the debt would be accrued and paid down in phases over multiple administrations.

He also stressed the plan does not call for free housing, but affordable housing that would generate revenue to pay down loans. Furthermore, the developments could partially be funded by private investment.

“That’s the way the plan is feasible,” the expert said.

Childcare for All

Establishing childcare access for all would cost between $2.5bn and twelve billion dollars by most estimates, based on whether it is a city or state program and other factors. Financing is the big question mark – can the business and high-earner levies pass Albany? One analyst commented he anticipated some compromise, as often happens with large-scale plans.

“The things that Mamdani pledged will likely be scaled back,” the expert said. “Furthermore the state leader’s expressed opposition to tax increases could face reality – she likely cannot achieve the objectives she desires on the expenditure front without some flexibility on the tax side.”