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Ambitious promises to make the city less expensive for New Yorkers catapulted democratic socialist Zohran Mamdani to his unlikely win on Tuesday. Among them are fare-free transit, universal childcare, and a massive expansion in low-cost housing.

However, turning the city cost-effective for inhabitants is an expensive government task, and many economists and elected officials to Mamdani’s right argue he faces too many hurdles to effectively follow through on his signature ideas.

Adding complexity to the situation is the national government, which will almost certainly pull funding for the city in an effort to sabotage Mamdani and open up budget holes that complicate efforts to fund new priorities.

Additionally, New York City must secure state legislature approval to modify several revenue streams. An analyst cited the state legislature blocking the city from increasing pet registration costs in a prior year due to a disagreement between the then mayor and a lawmaker.

“A striking way of stating the issue is New York City can’t raise pet permit charges without state legislature approval, and that held true previously, and it’s true now,” he said.

Nonetheless, analysts highlight favorable conditions: Mamdani’s ideas are very popular and would address basic problems. Democrats now have large majorities in the legislature, and several identify financial and political pathways to making the plans a success.

How might Mamdani pay for his bold program? We broke it down by revenue source and initiative.

Generating Income

The Mamdani campaign estimates it could raise about $10bn by increasing the corporate tax rate, taxes on the affluent, and existing fee and tax collections.

Critics say companies and the high-earners will relocate, but this is disputed by credible research. Additionally, the business levy is on profits made in the state no matter where a company is located, rendering the argument largely moot.

Business Levy Hike

Mamdani estimates a rise in state taxes between seven point two five percent and 11.5% on business earnings would produce around five billion dollars, much of which would be funneled to the city. State leaders would have to approve the proposal. State lawmakers have in the past backed comparable ideas, but the governor opposes increasing levies.

Yet, the governor supports childcare for all, a highly favored proposal because childcare is widely viewed as cost-prohibitive, stated one policy director. It would be challenging for moderate Democrats to “resist enacting a landmark initiative”, he continued. “Nobody says ‘Nothing should be done to reduce childcare costs.’”

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

Increasing Levies on the Wealthy

Mamdani’s plan aims to generating four billion dollars with a 2% hike on those making more than one million dollars each year. Though it’s a city tax, the state legislature must approve the rise, and the idea is generally opposed by moderate Democrats.

However there is a political pathway, he noted. Raising taxes on the rich is broadly popular and, similar to the business tax hike, allocating the proceeds to support favored initiatives makes it easier to promote in the state capital.

Rent Freeze

Regarding expense, a rent freeze on rent-controlled apartments is the simplest to enforce – it’s nearly free. However, a freeze must be authorized by the housing panel, and there may not be enough support on it until Mamdani appoints members with his own appointments.

Fare-Free and Efficient Buses

The plan projects free buses will require at least $700m, which includes an evasion rate of 48%. Observers suggest Mamdani could probably pay for the cost by optimizing or reducing additional services in the municipal $116bn city budget.

City-Owned Grocery Stores

A trial initiative for five city-owned grocery stores that would be built in neglected “food deserts” is projected at sixty million dollars and could additionally be funded by shifting priorities in the one hundred sixteen billion dollar budget.

Building Affordable Housing Units

Many people to the conservative side of Mamdani have dismissed the plan to spend approximately $100bn developing 200,000 low-income homes over a decade, largely because it would require substantial debt. The expert clarified those opposing this aspect mostly miss that the initiative is not to take on one hundred billion dollars at once – the liability would be accumulated and paid down in phases over several government terms.

He also stressed the plan is not for no-cost homes, but affordable housing that would produce income to pay down debt. Moreover, the projects could partially be privately financed.

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

Universal Childcare

Implementing childcare access for all would cost from $2.5bn and twelve billion dollars by most estimates, based on whether it is a municipal or state initiative and other factors. Financing is the major uncertainty – will the business and high-earner levies be approved in the state capital? One analyst said he expected negotiated adjustments, as often happens with large-scale plans.

“The things that Mamdani pledged will probably get a haircut,” the expert said. “And the state leader’s expressed opposition to revenue hikes may just face reality – she likely cannot achieve the things she wants on the expenditure front without some flexibility on the revenue side.”