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Ambitious pledges to make the metropolis less expensive for New Yorkers catapulted democratic socialist Zohran Mamdani to his unlikely victory on Tuesday. Included are free buses, 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 financial experts and politicians to Mamdani’s right say he faces too many obstacles to meaningfully deliver on his signature ideas.

Adding complexity to the situation is the national government, which will almost certainly withhold financial support for the city in an effort to sabotage Mamdani and create funding gaps that make it more difficult to pay for new priorities.

Additionally, the city must get state legislature approval to adjust several income sources. One expert pointed to the state legislature blocking the city from increasing dog licensing fees in 2014 due to a dispute between the then mayor and a lawmaker.

“A striking example of stating the issue is New York City can’t raise dog licensing fees without state legislature approval, and it was true then, and it remains the case today,” the expert noted.

Nonetheless, analysts highlight tailwinds: Mamdani’s ideas are very popular and would address fundamental issues. The Democratic party now hold large majorities in the legislature, and some identify financial and political pathways to making the proposals reality.

How might Mamdani finance his bold agenda? We broke it down by revenue source and proposal.

Generating Income

His team projects it could generate about ten billion dollars by raising the corporate tax rate, levies on the affluent, and current government revenues.

Detractors say companies and the wealthy will move away, but that is contradicted by reliable studies. Additionally, the business levy is on earnings made in the region no matter where a company is based, rendering the point at least partially irrelevant.

Business Levy Hike

Mamdani estimates a state tax increase between 7.25% and 11.5% on business earnings would generate about $5bn, a large portion of which would be directed to the city. The legislature and governor would have to authorize the proposal. Legislative leaders have in the past supported comparable ideas, but the governor opposes raising taxes.

Yet, the governor supports universal childcare, a very popular proposal because child services is widely viewed as cost-prohibitive, stated one policy director. It would be challenging for centrist lawmakers to “oppose enacting a landmark program”, he continued. “No one argues ‘We shouldn’t do anything to make childcare cheaper.’”

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

Raising Levies on the Affluent

The proposal calls for raising four billion dollars with a 2% increase on those earning above $1m each year. Although it’s a city tax, the state government must approve the increase, and the idea is typically opposed by moderate Democrats.

However there is a feasible route, the expert noted. Increasing taxes on the wealthy is broadly popular and, as with the corporate tax increase, using the proceeds to support popular programs helps to sell in the state capital.

Rent Freeze

Regarding expense, a pause on rent hikes on rent-controlled apartments is the simplest to implement – it’s minimally costly. However, a halt must be authorized by the rent guidelines board, and there might not exist enough support on it until Mamdani appoints members with his own appointments.

Fare-Free and Efficient Transit

Mamdani projects fare-free transit will require at least seven hundred million dollars, which factors in an fare-dodging percentage of forty-eight percent. Observers suggest Mamdani could likely cover the expense by optimizing or cutting other programs in the municipal one hundred sixteen billion dollar city budget.

Publicly Run Food Markets

A pilot program for several city-owned grocery stores that would be built in underserved “food deserts” is projected at $60m and could additionally be paid for by adjusting focus in the $116bn spending plan.

Building Low-Cost Homes Properties

Many commentators to the conservative side of Mamdani have dismissed the proposal to spend approximately $100bn building 200,000 low-income homes over 10 years, largely because it would require substantial borrowing. The expert said those arguing against this aspect largely miss that the initiative is not to take on $100bn immediately – the debt would be accumulated and repaid in tranches over several government terms.

He emphasized the plan does not call for free housing, but cost-effective residences that would generate revenue to reduce debt. Moreover, 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 between $2.5bn and twelve billion dollars by many projections, based on whether it is a city or state program and other factors. Funding is the big question mark – can the corporate and wealth taxes pass Albany? An expert commented he anticipated some compromise, as is typical with large-scale plans.

“The things that Mamdani promised will probably be scaled back,” he said. “Furthermore the state leader’s expressed resistance to tax increases may just face reality – she probably can’t get the things she wants on the expenditure front without compromise on the revenue side.”