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Ambitious promises to transform the metropolis more affordable for New Yorkers propelled progressive candidate Zohran Mamdani to his surprising victory on election day. Among them are free buses, childcare for all, and a massive expansion in affordable homes.

However, making the city more affordable for residents is an expensive public undertaking, and many financial experts and politicians to Mamdani’s conservative side argue he faces numerous obstacles to effectively follow through on his key proposals.

Adding complexity to matters is the national government, which will almost certainly pull funding for New York in an attempt to sabotage Mamdani and create budget holes that make it more difficult to pay for new priorities.

Additionally, the city must secure state government authorization to modify many revenue streams. An analyst pointed to the state assembly stopping the city from increasing dog licensing fees in a prior year due to a dispute between the then mayor and a state representative.

“A striking way of putting it is New York City cannot increase pet permit charges without state legislature approval, and that held true previously, and it’s true now,” he noted.

However, he and other experts point to favorable conditions: Mamdani’s proposals are very popular and would solve basic problems. The Democratic party now hold significant control in the state government, and some identify financial and viable routes to making the proposals reality.

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

Raising Income

His team projects it could raise about $10bn by raising the business tax, taxes on the affluent, and current government revenues.

Critics claim companies and the high-earners will relocate, but that is contradicted by reliable studies. Moreover, the business levy is on profits made in the region no matter where a company is located, rendering the argument at least partially irrelevant.

Business Levy Hike

The mayor-elect estimates a rise in state taxes from 7.25% and eleven point five percent on business earnings would produce about five billion dollars, much of which would be directed to the city. State leaders would have to approve the proposal. Legislative leaders have in the past backed similar proposals, but the state executive is against increasing levies.

However, the governor backs universal childcare, a very popular proposal because child services is commonly seen as cost-prohibitive, said one policy director. It would be difficult for moderate Democrats to “resist enacting a historical initiative”, he added. “No one argues ‘We shouldn’t do anything to make childcare cheaper.’”

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

Mamdani’s plan calls for raising $4bn with a two percent hike on those making above one million dollars annually. Though it’s a municipal levy, the state government must authorize the increase, and the proposal is generally opposed by centrist lawmakers.

However there is a feasible route, the expert said. Increasing revenue on the rich is broadly popular and, as with the business tax hike, using the proceeds to fund popular programs helps to sell in Albany.

Halt on Rent Increases

In terms of cost, a pause on rent hikes on regulated housing is the simplest to enforce – it’s minimally costly. But, a freeze must be approved by the housing panel, and there might not exist sufficient backing on it before Mamdani appoints members with his preferred candidates.

Fare-Free and Efficient Buses

The plan projects free buses will require a minimum of $700m, which factors in an fare-dodging percentage of forty-eight percent. Observers suggest Mamdani could likely cover the expense by streamlining or cutting other programs in the city’s $116bn annual spending plan.

City-Owned Food Markets

A pilot program for five city-owned grocery stores that would be built in underserved “food deserts” is projected at $60m and could also be funded by shifting focus in the one hundred sixteen billion dollar spending plan.

Constructing Affordable Housing Units

Many commentators to the right of Mamdani have dismissed the proposal to invest about $100bn building two hundred thousand affordable units over 10 years, mainly because it would necessitate substantial debt. He clarified those opposing this point mostly overlook that the initiative is not to take on $100bn at once – the liability would be accrued and repaid in phases over multiple administrations.

He also stressed the proposal does not call for free housing, but affordable housing that would generate revenue to pay down debt. Furthermore, the developments could partially be funded by private investment.

“That’s the way the proposal adds up,” the expert said.

Childcare for All

Establishing childcare access for all would require between $2.5bn and twelve billion dollars by many projections, depending on whether it is a municipal or state initiative and additional variables. Funding is the major uncertainty – can the corporate and wealth taxes pass Albany? One analyst said he anticipated some compromise, as is typical with large-scale plans.

“Proposals that Mamdani promised will likely be scaled back,” he remarked. “Furthermore the governor’s stated resistance to tax increases could confront practical limits – she likely cannot achieve the objectives she wants on the spending side without some flexibility on the revenue side.”