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Bold promises to make the city less expensive for New Yorkers propelled progressive candidate Zohran Mamdani to his surprising victory on Tuesday. Among them are free buses, universal childcare, and a massive increase in low-cost housing.

However, making the city more affordable for residents is an expensive public undertaking, and many economists and politicians to Mamdani’s conservative side argue he confronts numerous obstacles to effectively follow through on his signature ideas.

Further complicating matters is the national government, which will almost certainly withhold financial support for the city in an effort to undermine Mamdani and open up budget holes that make it more difficult to fund new priorities.

Additionally, the city must get state government approval to modify many revenue streams. One expert pointed to the state assembly blocking the municipality from increasing 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 New York City cannot increase dog licensing fees without state approval, and it was true then, and it remains the case today,” the expert noted.

However, he and other experts point to tailwinds: Mamdani’s proposals are very popular and would address basic problems. Democrats now have large majorities in the state government, and some identify financial and viable routes to making the plans reality.

How could Mamdani pay for his ambitious agenda? Here’s a detailed look by funding method and initiative.

Raising Revenue

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

Detractors say companies and the high-earners will move away, but that is disputed by reliable studies. Additionally, the corporate tax is on profits made in the region no matter where a company is based, rendering the point at least partially irrelevant.

Corporate Tax Increase

The mayor-elect calculates a state tax increase between 7.25% and eleven point five percent on business earnings would produce around five billion dollars, much of which would be funneled to New York City. State leaders would have to approve the proposal. State lawmakers have previously supported similar proposals, but the state executive is against raising taxes.

Yet, the state leader backs childcare for all, a highly favored initiative because child services is widely viewed as cost-prohibitive, said one policy director. It would be challenging for centrist lawmakers to “resist enacting a landmark program”, he added. “No one says ‘Nothing should be done to make childcare cheaper.’”

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

Raising Taxes on the Affluent

The proposal calls for raising four billion dollars with a two percent hike on those earning more than $1m each year. Although it’s a city tax, the state legislature must approve the increase, and the proposal is generally resisted by moderate lawmakers.

However there is a feasible route, he said. Raising revenue on the rich is widely accepted and, similar to the business tax hike, allocating the proceeds to fund popular programs makes it easier to sell in the state capital.

Halt on Rent Increases

Regarding cost, a rent freeze on regulated housing is the easiest to implement – it’s minimally costly. However, a freeze must be approved by the rent guidelines board, and there might not exist sufficient backing on it before Mamdani appoints members with his preferred candidates.

Fare-Free and Efficient Transit

The plan projects free buses will cost a minimum of seven hundred million dollars, which factors in an evasion rate of forty-eight percent. Observers say Mamdani could probably cover the expense by optimizing or reducing additional services in the municipal one hundred sixteen billion dollar annual spending plan.

Publicly Run Food Markets

A pilot program for several city-owned grocery stores that would be established in neglected “areas lacking food access” is projected at sixty million dollars and could additionally be paid for by shifting priorities in the one hundred sixteen billion dollar spending plan.

Constructing Affordable Housing Properties

Many commentators to the conservative side of Mamdani have dismissed the proposal to spend about $100bn building 200,000 low-income homes over 10 years, mainly because it would require massive borrowing. He clarified those arguing against this point largely overlook that the plan is does not involve to take on one hundred billion dollars immediately – the debt would be accumulated and paid down in tranches over multiple administrations.

He emphasized the plan is not for free housing, but cost-effective residences that would generate revenue to pay down debt. Furthermore, the developments could in part be funded by private investment.

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

Universal Childcare

Establishing universal childcare would require between $2.5bn and twelve billion dollars by many projections, based on whether it is a city or state program and other factors. Funding is the big question mark – can the corporate and wealth taxes be approved in Albany? An expert said he anticipated negotiated adjustments, as is typical with big proposals.

“The things that Mamdani pledged will probably get a haircut,” the expert remarked. “Furthermore the governor’s stated resistance to tax increases may just confront practical limits – she likely cannot achieve the objectives she wants on the expenditure front without compromise on the revenue side.”