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Ambitious pledges to transform the city more affordable for residents catapulted democratic socialist Zohran Mamdani to his surprising victory on election day. Included are free buses, universal childcare, and a large-scale increase in affordable homes.

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

Adding complexity to the situation is the federal administration, which will likely pull funding for the city in an attempt to undermine Mamdani and create funding gaps that make it more difficult to fund new priorities.

Additionally, the city must get state legislature approval to adjust several income sources. One expert pointed to the state assembly stopping the municipality from increasing pet registration costs in 2014 due to a dispute between the then mayor and a lawmaker.

“The dramatic example of stating the issue is the City can’t raise dog licensing fees without state approval, and that held true previously, and it’s true now,” the expert noted.

Nonetheless, analysts point to tailwinds: Mamdani’s proposals are very popular and would address basic problems. The Democratic party now hold large majorities in the legislature, and several see economic and viable routes to making the plans a success.

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

Generating Income

The Mamdani campaign projects it could generate approximately ten billion dollars by raising the corporate tax rate, taxes on the affluent, and current government revenues.

Critics say companies and the wealthy will relocate, but that is disputed by credible research. Moreover, the corporate tax is on earnings made in the region no matter where a business is located, rendering the point largely moot.

Business Levy Increase

The mayor-elect calculates a rise in state taxes from seven point two five percent and eleven point five percent on business earnings would produce about $5bn, much of which would be directed to the city. State leaders would have to approve the proposal. State lawmakers have previously supported similar proposals, but the state executive is against raising taxes.

Yet, the state leader backs childcare for all, a very popular initiative because child services is commonly seen as too expensive, said an expert. It would be difficult for centrist lawmakers to “oppose enacting a landmark initiative”, he added. “No one says ‘Nothing should be done to reduce childcare costs.’”

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

Raising Taxes on the Affluent

The proposal aims to raising four billion dollars with a 2% hike on those earning above $1m annually. Though it’s a city tax, the state legislature must authorize the rise, and the idea is generally opposed by moderate Democrats.

But there is a political pathway, the expert said. Increasing revenue on the rich is broadly popular and, similar to the business tax hike, using the funds to support popular programs makes it easier to promote in Albany.

Rent Freeze

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 housing panel, and there might not exist sufficient backing on it until Mamdani fills it with his preferred candidates.

Free and Fast Buses

Mamdani projects free buses will cost at least seven hundred million dollars, which factors in an fare-dodging percentage of forty-eight percent. Analysts suggest Mamdani could likely pay for the expense by optimizing or cutting additional services in the municipal $116bn city budget.

Publicly Run Grocery Stores

A pilot program for several public food markets that would be built in neglected “areas lacking food access” is estimated at $60m and could additionally be funded by shifting focus in the $116bn budget.

Constructing Affordable Housing Properties

Many commentators to the conservative side of Mamdani have written off the proposal to spend about $100bn developing 200,000 affordable units over 10 years, largely because it would necessitate massive borrowing. The expert said those opposing this aspect mostly overlook that the initiative is not to borrow one hundred billion dollars at once – the liability would be accrued and repaid in tranches over several government terms.

He also stressed the plan does not call for no-cost homes, but affordable housing that would produce income to pay down debt. Furthermore, the developments could in part be funded by private investment.

“This is how the plan is feasible,” the expert concluded.

Universal Childcare

Implementing childcare access for all would require from two point five billion dollars and twelve billion dollars by most estimates, depending on whether it is a municipal or state initiative and other factors. Funding is the major uncertainty – can the business and high-earner levies be approved in Albany? An expert said he anticipated some compromise, as often happens with large-scale plans.

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