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Ambitious pledges to make the city more affordable for New Yorkers propelled progressive candidate Zohran Mamdani to his surprising win on Tuesday. Included are fare-free transit, childcare for all, and a large-scale increase in affordable homes.

However, turning the city more affordable for residents is an costly government task, and many financial experts and politicians to Mamdani’s right say he confronts too many obstacles to meaningfully deliver on his key proposals.

Further complicating the situation is the national government, which will likely withhold financial support for the city in an effort to sabotage Mamdani and open up budget holes that make it more difficult to pay for new priorities.

Additionally, the city must get state government approval to adjust many revenue streams. One expert cited the state legislature stopping the municipality from increasing dog licensing fees in a prior year due to a disagreement between the then mayor and a lawmaker.

“The dramatic way of stating the issue is the City cannot increase pet permit charges without state legislature approval, and it was true then, and it’s true now,” the expert said.

Nonetheless, analysts highlight tailwinds: Mamdani’s proposals are widely supported and would address basic problems. The Democratic party now hold large majorities in the state government, and some see financial and viable routes to making the plans reality.

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

Raising Income

His team estimates it could raise approximately ten billion dollars by raising the corporate tax rate, levies on the affluent, and current government revenues.

Critics claim businesses and the wealthy will move away, but that is contradicted by credible research. Moreover, the corporate tax is on profits made in the region no matter where a business is located, rendering the argument at least partially irrelevant.

Corporate Tax Increase

Mamdani calculates a state tax increase between 7.25% and 11.5% on corporate profits would produce about $5bn, a large portion of which would be directed to New York City. State leaders would have to authorize the proposal. State lawmakers have in the past supported comparable ideas, but the governor opposes raising taxes.

However, the state leader supports childcare for all, a very popular initiative because childcare is widely viewed as cost-prohibitive, stated an expert. It would be difficult for centrist lawmakers to “oppose passing a historical program”, he continued. “Nobody says ‘Nothing should be done to reduce childcare costs.’”

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

Increasing Levies on the Wealthy

The proposal calls for generating four billion dollars with a two percent hike on those making more than one million dollars each year. Though it’s a city tax, the state legislature must authorize the increase, and the idea is generally opposed by centrist lawmakers.

But there is a feasible route, the expert noted. Increasing revenue on the wealthy is broadly popular and, similar to the corporate tax increase, using the funds to fund favored initiatives helps to sell in the state capital.

Rent Freeze

In terms of cost, a pause on rent hikes on rent-controlled apartments is the easiest to implement – it’s minimally costly. However, a halt 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 Transit

Mamdani estimates free buses will cost at least seven hundred million dollars, which factors in an fare-dodging percentage of 48%. Analysts say Mamdani could likely pay for the expense by optimizing or reducing other programs in the municipal $116bn annual spending plan.

City-Owned 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 funded by shifting focus in the one hundred sixteen billion dollar budget.

Constructing Affordable Housing Properties

Numerous commentators to the right of Mamdani have dismissed the plan to spend approximately $100bn developing 200,000 low-income homes over a decade, mainly because it would require substantial borrowing. He said those opposing this aspect mostly overlook that the plan is does not involve to borrow one hundred billion dollars immediately – the debt would be accumulated and repaid in phases over multiple administrations.

He emphasized the plan is not for no-cost homes, but affordable housing that would generate revenue to reduce debt. Furthermore, the projects could partially be funded by private investment.

“This is how the plan is feasible,” he said.

Childcare for All

Implementing universal childcare would require between $2.5bn 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 pass the state capital? One analyst commented he anticipated negotiated adjustments, as often happens with big proposals.

“The things that Mamdani pledged will likely be scaled back,” the expert said. “Furthermore the governor’s stated opposition to revenue hikes could face reality – she probably cannot achieve the things she desires on the expenditure front without compromise on the tax side.”