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Bold promises to make the city more affordable for New Yorkers catapulted progressive candidate Zohran Mamdani to his surprising win on election day. Among them are free buses, childcare for all, and a massive increase in low-cost housing.

However, turning the urban center more affordable for residents is an costly public undertaking, and many financial experts and politicians to Mamdani’s conservative side argue he confronts numerous hurdles to effectively follow through on his key proposals.

Adding complexity to the situation is the national government, which will almost certainly withhold financial support for the city in an attempt to sabotage Mamdani and create budget holes that complicate efforts to pay for new priorities.

Additionally, the city must get state government approval to modify several income sources. An analyst pointed to the state assembly blocking the city from raising pet registration costs in a prior year due to a dispute between the incumbent at the time and a state representative.

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

Nonetheless, he and other experts highlight tailwinds: Mamdani’s ideas are widely supported and would solve fundamental issues. The Democratic party now have large majorities in the state government, and several see economic and political pathways to implementing the proposals reality.

How might Mamdani finance his bold agenda? We broke it down by funding method and initiative.

Raising Revenue

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

Critics claim companies and the wealthy will move away, but this is disputed by credible research. Moreover, the business levy is on earnings made in the state no matter where a company is based, rendering the argument at least partially irrelevant.

Business Levy Hike

The mayor-elect calculates a rise in state taxes from seven point two five percent and eleven point five percent on corporate profits would generate about $5bn, much of which would be funneled to the city. State leaders would have to approve the proposal. Legislative leaders have in the past backed comparable ideas, but the state executive is against raising taxes.

However, the state leader supports childcare for all, a very popular proposal because child services is commonly seen as too expensive, said an expert. It would be challenging for centrist lawmakers to “oppose passing a landmark program”, he continued. “Nobody argues ‘We shouldn’t do anything to make childcare cheaper.’”

The missing element, the expert said, has been a figure like Mamdani who says: “Yeah, it costs money, and we will raise taxes to make it happen.”

Increasing Taxes on the Wealthy

The proposal calls for raising four billion dollars with a 2% increase on those earning above one million dollars each year. Although it’s a municipal levy, the state legislature must authorize the increase, and the idea is generally resisted by centrist Democrats.

But there is a feasible route, the expert said. Increasing taxes on the rich is widely accepted and, similar to the business tax hike, using the proceeds to fund favored initiatives helps to promote in the state capital.

Rent Freeze

Regarding expense, a pause on rent hikes on regulated housing is the simplest to enforce – it’s minimally costly. But, a freeze must be authorized by the housing panel, and there may not be enough support on it until Mamdani fills it with his own appointments.

Free and Fast Transit

Mamdani projects free buses will cost at least seven hundred million dollars, which factors in an evasion rate of forty-eight percent. Observers suggest Mamdani could likely cover the expense by optimizing or cutting other programs in the municipal $116bn city budget.

Publicly Run Food Markets

A trial initiative for five city-owned grocery stores that would be established in underserved “food deserts” is projected at $60m and could additionally be funded by adjusting priorities in the $116bn budget.

Constructing Low-Cost Homes Units

Numerous commentators to the conservative side of Mamdani have written off the proposal to invest approximately one hundred billion dollars developing two hundred thousand affordable units over a decade, largely because it would necessitate massive debt. The expert clarified those arguing against this aspect largely miss that the initiative is not to take on one hundred billion dollars at once – the liability would be accrued and paid down in phases over multiple administrations.

He emphasized the proposal does not call for free housing, but affordable housing that would produce income to reduce debt. Furthermore, the developments could in part be privately financed.

“That’s the way the proposal is feasible,” the expert said.

Childcare for All

Implementing universal childcare would require from two point five billion dollars 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 – will the business and high-earner levies be approved in Albany? An expert commented he expected some compromise, as often happens with big proposals.

“The things that Mamdani promised will probably get a haircut,” he said. “Furthermore the governor’s expressed resistance to tax increases could face reality – she likely cannot achieve the objectives she desires on the expenditure front without some flexibility on the revenue side.”