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Ambitious promises to transform the metropolis more affordable for residents catapulted progressive candidate Zohran Mamdani to his surprising victory on Tuesday. Among them are fare-free transit, childcare for all, and a massive increase in low-cost housing.

However, turning the urban center more affordable for inhabitants is an expensive public undertaking, and numerous financial experts and elected officials to Mamdani’s right argue he faces too many hurdles to effectively follow through on his signature ideas.

Further complicating the situation is the federal administration, which will likely withhold financial support for New York in an attempt to undermine Mamdani and create budget holes that make it more difficult to pay for fresh initiatives.

Additionally, the city must get state government approval to modify several income sources. One expert pointed to the state legislature blocking the municipality from raising pet registration costs in 2014 due to a disagreement between the then mayor and a state representative.

“A striking way of putting it is the City can’t raise pet permit charges without state approval, and it was true then, and it remains the case today,” he said.

However, analysts point to tailwinds: Mamdani’s ideas are widely supported and would address basic problems. The Democratic party now hold significant control in the legislature, and several see economic and political pathways to implementing the plans a success.

How might Mamdani pay for his ambitious program? Here’s a detailed look by funding method and proposal.

Raising Revenue

The Mamdani campaign projects it could raise approximately ten billion dollars by raising the corporate tax rate, levies on the affluent, and existing fee and tax collections.

Detractors claim businesses and the high-earners will relocate, but that is contradicted by credible research. Additionally, the corporate tax is on profits made in the state no matter where a business is located, rendering the argument at least partially moot.

Corporate Tax Increase

Mamdani estimates a rise in state taxes from 7.25% and eleven point five percent on corporate profits would generate about $5bn, a large portion of which would be funneled to New York City. The legislature and governor would have to authorize the proposal. State lawmakers have previously backed similar proposals, but the state executive is against increasing levies.

However, the state leader backs childcare for all, a very popular proposal because child services is widely viewed as too expensive, stated one policy director. It would be challenging for centrist lawmakers to “resist enacting a historical program”, he continued. “No one argues ‘Nothing should be done to make childcare cheaper.’”

What’s been lacking, he said, has been a leader like Mamdani who says: “Yeah, it costs money, and we will increase revenue to make it happen.”

Increasing Taxes on the Affluent

Mamdani’s plan calls for generating four billion dollars with a two percent hike on those making more than one million dollars annually. Although it’s a municipal levy, the state government must approve the increase, and the proposal is generally opposed by moderate lawmakers.

However there is a political pathway, he noted. Raising revenue on the wealthy is broadly popular and, as with the business tax hike, using the funds to fund popular programs makes it easier to sell in the state capital.

Rent Freeze

In terms of expense, a pause on rent hikes on regulated housing is the easiest to implement – it’s minimally costly. But, a halt must be approved by the housing panel, and there may not be enough support on it before Mamdani fills it with his own appointments.

Free and Fast Buses

Mamdani projects fare-free transit will require at least seven hundred million dollars, which factors in an evasion rate of forty-eight percent. Analysts say Mamdani could likely cover the cost by optimizing or cutting other programs in the municipal $116bn annual spending plan.

City-Owned Food Markets

A pilot program for five city-owned grocery stores that would be built in neglected “areas lacking food access” is projected at sixty million dollars and could also be funded by shifting priorities in the one hundred sixteen billion dollar budget.

Constructing Affordable Housing Units

Numerous people to the right of Mamdani have written off the proposal to spend approximately $100bn building 200,000 affordable units over a decade, largely because it would require substantial borrowing. He clarified those arguing against this point mostly miss that the initiative is does not involve to borrow $100bn at once – the liability would be accrued and repaid in tranches over multiple administrations.

He also stressed the proposal is not for free housing, but affordable housing that would produce income to reduce debt. Moreover, the projects could partially be funded by private investment.

“That’s the way the proposal is feasible,” he concluded.

Childcare for All

Implementing universal childcare would cost from $2.5bn and twelve billion dollars by most estimates, depending on whether it is a municipal or state initiative and additional variables. Funding is the big question mark – will the corporate and wealth taxes pass the state capital? An expert commented he expected negotiated adjustments, as is typical with big proposals.

“Proposals that Mamdani pledged will likely be scaled back,” the expert remarked. “Furthermore the state leader’s stated resistance to tax increases may just confront practical limits – she probably can’t get the things she desires on the spending side without compromise on the tax side.”