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Bold promises to transform the metropolis more affordable for residents propelled progressive candidate Zohran Mamdani to his unlikely win on election day. Among them are fare-free transit, childcare for all, and a large-scale expansion in affordable homes.

However, making the city more affordable for residents is an expensive public undertaking, and many financial experts and elected officials to Mamdani’s right argue he faces too many hurdles to meaningfully deliver on his key proposals.

Further complicating matters is the national government, which will likely pull funding for the city in an effort to undermine Mamdani and create budget holes that complicate efforts to pay for new priorities.

Additionally, New York City must secure state legislature approval to adjust many income sources. An analyst pointed to the state legislature stopping the municipality from increasing pet registration costs in 2014 due to a dispute between the then mayor and a lawmaker.

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

However, he and other experts point to tailwinds: Mamdani’s ideas are very popular and would solve basic problems. Democrats now have significant control in the legislature, and some see economic and political pathways to making the proposals reality.

How could Mamdani pay for his bold agenda? We broke it down by funding method and initiative.

Raising Income

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

Detractors say companies and the wealthy will relocate, but this is contradicted by reliable studies. Additionally, the business levy is on profits made in the state regardless of where a business is based, making the point largely moot.

Business Levy Increase

Mamdani calculates a rise in state taxes from seven point two five percent and 11.5% on corporate profits would produce about $5bn, a large portion of which would be directed to the city. State leaders would have to authorize the plan. State lawmakers have previously backed similar proposals, but the governor opposes increasing levies.

Yet, the state leader supports childcare for all, a very popular initiative because child services is commonly seen as cost-prohibitive, stated an expert. It would be difficult for centrist lawmakers to “resist passing a landmark program”, he added. “Nobody argues ‘We shouldn’t do anything to make childcare cheaper.’”

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

Increasing Taxes on the Affluent

Mamdani’s plan aims to raising four billion dollars 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 increase, and the proposal is generally opposed by centrist lawmakers.

But there is a political pathway, he said. Increasing revenue on the wealthy is widely accepted and, similar to the corporate tax increase, allocating the funds to fund popular programs makes it easier to promote in the state capital.

Halt on Rent Increases

Regarding expense, a pause on rent hikes on regulated housing is the easiest to enforce – it’s nearly free. But, a halt must be authorized by the rent guidelines board, and there may not be enough support on it before Mamdani fills it with his preferred candidates.

Free and Fast Buses

Mamdani estimates fare-free transit will require at least seven hundred million dollars, which includes an evasion rate of 48%. Observers 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 Grocery Stores

A trial initiative for several public food markets that would be established in neglected “food deserts” is projected at sixty million dollars and could also be funded by shifting priorities in the $116bn budget.

Constructing Affordable Housing Units

Many commentators to the conservative side of Mamdani have dismissed the proposal to spend approximately $100bn building 200,000 affordable units over a decade, largely because it would require substantial debt. He clarified those opposing this aspect mostly miss that the initiative is does not involve to take on one hundred billion dollars immediately – the debt would be accrued and paid down in phases over multiple administrations.

He also stressed the proposal is not for free housing, but affordable housing that would generate revenue to pay down loans. Furthermore, the developments could in part be privately financed.

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

Universal Childcare

Implementing universal childcare would require from $2.5bn and twelve billion dollars by many projections, depending on whether it is a city or state program and other factors. Funding is the big question mark – can the business and high-earner levies pass Albany? One analyst said he expected some compromise, as is typical with large-scale plans.

“Proposals that Mamdani promised will probably be scaled back,” the expert remarked. “Furthermore the governor’s expressed opposition to tax increases could confront practical limits – she likely cannot achieve the things she wants on the expenditure front without compromise on the tax side.”