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Ambitious promises to transform the metropolis less expensive for residents propelled progressive candidate Zohran Mamdani to his unlikely win on election day. Included are free buses, childcare for all, and a massive increase in low-cost housing.

However, turning the urban center more affordable for residents is an expensive public undertaking, and many financial experts and politicians to Mamdani’s right argue he confronts numerous hurdles to effectively follow through on his key proposals.

Adding complexity to matters is the national government, which will likely pull funding for the city in an effort to undermine Mamdani and create funding gaps that complicate efforts to fund new priorities.

Additionally, New York City must secure state legislature authorization to adjust many revenue streams. An analyst pointed to the state legislature stopping the city from raising pet registration costs in a prior year due to a disagreement between the then mayor and a lawmaker.

“The dramatic way of putting it is New York City cannot increase pet permit charges without state approval, and it was true then, and it remains the case today,” the expert noted.

However, he and other experts point to tailwinds: Mamdani’s proposals are widely supported and would solve fundamental issues. Democrats now have significant control in the legislature, and some identify economic and political pathways to implementing the proposals a success.

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

Raising Income

His team projects it could generate approximately $10bn by increasing the corporate tax rate, levies on the wealthy, and existing fee and tax collections.

Critics claim companies and the high-earners will move away, but that is contradicted by credible research. Moreover, the business levy is on earnings made in the region no matter where a business is based, making the point largely irrelevant.

Corporate Tax Hike

Mamdani estimates a state tax increase between seven point two five percent and eleven point five percent on business earnings would produce around $5bn, a large portion of which would be directed to the city. The legislature and governor would have to authorize the plan. State lawmakers have in the past backed comparable ideas, but the state executive is against raising taxes.

However, the governor supports childcare for all, a very popular initiative because childcare is widely viewed as too expensive, said an expert. It would be challenging for centrist lawmakers to “resist enacting a landmark program”, he continued. “No one says ‘We shouldn’t do anything to reduce childcare costs.’”

What’s been lacking, the expert explained, has been a figure like Mamdani who declares: “Yes, it costs money, and we will increase revenue to get it done.”

Increasing Taxes on the Affluent

Mamdani’s plan calls for generating four billion dollars with a two percent hike on those earning above $1m each year. Though it’s a city tax, the state legislature must authorize the increase, and the idea is typically resisted by centrist Democrats.

However there is a feasible route, the expert noted. Increasing revenue on the rich is broadly popular and, similar to the corporate tax increase, allocating the proceeds to fund favored initiatives helps to promote in Albany.

Halt on Rent Increases

In terms of cost, a pause on rent hikes on regulated housing is the easiest to implement – it’s nearly free. However, a freeze 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.

Free and Fast Transit

Mamdani estimates fare-free transit will cost at least seven hundred million dollars, which includes an fare-dodging percentage of 48%. Observers suggest Mamdani could likely pay for the expense by optimizing or reducing other programs in the city’s $116bn city budget.

City-Owned Food Markets

A pilot program for five public food markets that would be built in underserved “food deserts” is projected at $60m and could additionally be funded by shifting focus in the one hundred sixteen billion dollar budget.

Building Affordable Housing Properties

Numerous people to the right of Mamdani have dismissed the proposal to invest approximately $100bn developing 200,000 affordable units over a decade, largely because it would necessitate massive borrowing. The expert said those arguing against 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 phases over several government terms.

He also stressed the plan does not call for no-cost homes, but affordable housing that would generate revenue to pay down debt. Furthermore, the developments could in part be privately financed.

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

Universal Childcare

Establishing childcare access for all would require between two point five billion dollars and twelve billion dollars by most estimates, depending on whether it is a city or state program and other factors. Financing is the major uncertainty – can the business and high-earner levies pass Albany? An expert commented he anticipated some compromise, as is typical with big proposals.

“Proposals that Mamdani promised will probably be scaled back,” the expert said. “Furthermore the governor’s stated opposition to revenue hikes could face reality – she probably cannot achieve the objectives she desires on the spending side without some flexibility on the tax side.”