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Bold promises to transform the city less expensive for New Yorkers catapulted progressive candidate Zohran Mamdani to his surprising win on election day. Among them are fare-free transit, universal childcare, and a massive increase in low-cost housing.

However, turning the city cost-effective for residents is an expensive government task, and numerous economists and politicians to Mamdani’s conservative side say he confronts numerous obstacles to meaningfully deliver on his key proposals.

Further complicating 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 complicate efforts to pay for fresh initiatives.

Additionally, New York City must get state legislature approval to adjust many income sources. An analyst pointed to the state legislature blocking the city from increasing dog licensing fees in 2014 due to a dispute between the incumbent at the time and a lawmaker.

“The dramatic way of stating the issue is the City cannot increase pet permit charges without state approval, and that held true previously, and it remains the case today,” the expert said.

Nonetheless, analysts point to tailwinds: Mamdani’s ideas are widely supported and would solve basic problems. The Democratic party now have large majorities in the legislature, and some see economic and viable routes to making the plans reality.

In what ways might Mamdani pay for his bold agenda? Here’s a detailed look by funding method and initiative.

Raising Revenue

His team estimates it could generate about $10bn by increasing the business tax, levies on the affluent, and current government revenues.

Critics say companies and the wealthy will relocate, but this is disputed by reliable studies. Moreover, the business levy is on profits made in the state regardless of where a business is based, making the point largely irrelevant.

Corporate Tax Increase

The mayor-elect estimates a rise in state taxes from 7.25% and 11.5% on business earnings would generate around five billion dollars, a large portion of which would be funneled to New York City. The legislature and governor would have to authorize the proposal. State lawmakers have previously supported comparable ideas, but the governor opposes raising taxes.

Yet, the state leader supports universal childcare, a highly favored proposal because child services is commonly seen as too expensive, stated an expert. It would be challenging for moderate Democrats to “resist passing a landmark initiative”, he added. “Nobody argues ‘Nothing should be done to make childcare cheaper.’”

The missing element, he said, has been a figure like Mamdani who says: “Yes, it requires funding, and we will increase revenue to get it done.”

Raising Taxes on the Wealthy

The proposal calls for raising $4bn with a 2% hike on those earning more than $1m each year. Though it’s a city tax, the state legislature must authorize the increase, and the proposal is typically resisted by moderate lawmakers.

But there is a feasible route, the expert noted. Increasing revenue on the wealthy is widely accepted and, similar to the business tax hike, allocating the proceeds to fund favored initiatives makes it easier to promote in Albany.

Rent Freeze

Regarding expense, a pause on rent hikes on regulated housing is the simplest to implement – it’s nearly free. However, a halt must be authorized by the rent guidelines board, and there may not be sufficient backing on it until Mamdani fills it with his own appointments.

Fare-Free and Efficient Transit

Mamdani projects free buses will require at least $700m, which factors in an fare-dodging percentage of forty-eight percent. Observers say Mamdani could probably cover the expense by optimizing or reducing other programs in the city’s one hundred sixteen billion dollar city budget.

City-Owned Food Markets

A pilot program for several city-owned grocery stores that would be built in underserved “areas lacking food access” is projected at sixty million dollars and could additionally be funded by shifting focus in the one hundred sixteen billion dollar budget.

Building Low-Cost Homes Units

Many people to the right of Mamdani have dismissed the proposal to spend approximately one hundred billion dollars developing 200,000 low-income homes over 10 years, largely because it would require substantial debt. The expert clarified those opposing this aspect largely miss that the initiative is not to take on one hundred billion dollars at once – the liability would be accumulated and repaid in tranches over multiple administrations.

He emphasized the proposal does not call for free housing, but cost-effective residences that would produce income to pay down debt. Moreover, the projects could in part be privately financed.

“That’s the way the plan adds up,” the expert concluded.

Universal Childcare

Implementing childcare access for all 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. Financing is the big question mark – can the business and high-earner levies be approved in Albany? One analyst said he anticipated some compromise, as is typical with large-scale plans.

“The things that Mamdani pledged will probably be scaled back,” he remarked. “Furthermore the governor’s expressed opposition to tax increases may just confront practical limits – she probably cannot achieve the things she wants on the spending side without compromise on the revenue side.”