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Ambitious pledges to make the city more affordable for New Yorkers propelled progressive candidate Zohran Mamdani to his unlikely win on election day. Included are free buses, universal childcare, and a massive expansion in low-cost housing.

However, making the city cost-effective for residents is an costly public undertaking, and many economists and politicians to Mamdani’s right say he confronts numerous obstacles to meaningfully deliver on his key proposals.

Adding complexity to the situation is the federal administration, which will almost certainly withhold financial support for New York in an effort to undermine Mamdani and open up budget holes that complicate efforts to fund new priorities.

Additionally, the city must secure state legislature authorization to modify many income sources. One expert pointed to the state assembly blocking the city from increasing dog licensing fees in a prior year due to a dispute between the incumbent at the time and a lawmaker.

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

Nonetheless, he and other experts highlight favorable conditions: Mamdani’s proposals are very popular and would solve basic problems. The Democratic party now hold significant control in the legislature, and some see economic and political pathways to implementing the proposals reality.

In what ways might Mamdani pay for his ambitious program? We broke it down by funding method and proposal.

Raising Income

The Mamdani campaign projects it could generate approximately ten billion dollars by raising the business tax, taxes on the affluent, and existing fee and tax collections.

Critics claim businesses and the high-earners will relocate, but this is disputed by credible research. Moreover, the business levy is on profits made in the state no matter where a company is located, rendering the argument at least partially moot.

Corporate Tax Hike

Mamdani estimates a state tax increase between seven point two five percent and eleven point five percent on corporate profits would produce around five billion dollars, a large portion of which would be funneled to New York City. State leaders would have to approve the plan. State lawmakers have in the past backed similar proposals, but the state executive is against increasing levies.

Yet, the governor backs universal childcare, a very popular proposal because childcare is widely viewed as cost-prohibitive, said one policy director. It would be difficult for moderate Democrats to “resist enacting a landmark program”, he added. “Nobody argues ‘We shouldn’t do anything to reduce childcare costs.’”

What’s been lacking, he explained, has been a figure like Mamdani who says: “Yes, it costs money, and we will raise taxes to make it happen.”

Increasing Levies on the Wealthy

Mamdani’s plan aims to generating $4bn with a 2% increase on those earning above one million dollars annually. Though it’s a municipal levy, the state legislature must approve the increase, and the proposal is typically opposed by moderate Democrats.

However there is a political pathway, he noted. Raising revenue on the wealthy is broadly popular and, similar to the corporate tax increase, allocating the proceeds to fund favored initiatives makes it easier to sell in Albany.

Rent Freeze

Regarding expense, a pause on rent hikes on rent-controlled apartments is the simplest to implement – it’s nearly free. However, a freeze must be authorized by the housing panel, and there might not exist sufficient backing on it until Mamdani fills it with his own appointments.

Free and Fast Buses

The plan 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 probably cover the cost by streamlining or cutting additional services in the city’s $116bn annual spending plan.

Publicly Run Grocery Stores

A pilot program for several public food markets that would be established in underserved “food deserts” is projected at sixty million dollars and could additionally be funded by shifting focus in the $116bn spending plan.

Building Low-Cost Homes Units

Numerous people to the conservative side of Mamdani have written off the proposal to invest about $100bn building two hundred thousand low-income homes over 10 years, largely because it would require massive debt. He said those arguing against this point mostly overlook that the initiative is not to borrow one hundred billion dollars immediately – the liability would be accumulated and repaid in phases over multiple administrations.

He also stressed the proposal is not for free housing, but cost-effective residences that would produce income to reduce loans. Moreover, the developments could partially be privately financed.

“This is how the proposal adds up,” the expert said.

Universal Childcare

Establishing childcare access for all would cost between $2.5bn and $12bn by most estimates, depending on whether it is a city or state program and additional variables. Funding is the big question mark – can the business and high-earner levies pass Albany? One analyst said he expected some compromise, as is typical with large-scale plans.

“The things that Mamdani pledged will probably be scaled back,” the expert said. “Furthermore the state leader’s stated resistance to revenue hikes could face reality – she probably cannot achieve the objectives she wants on the spending side without compromise on the tax side.”