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Ambitious promises to transform the city more affordable for New Yorkers propelled progressive candidate Zohran Mamdani to his unlikely victory on Tuesday. Among them are fare-free transit, childcare for all, and a large-scale expansion in affordable homes.

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

Adding complexity to matters is the federal administration, which will almost certainly pull funding for New York in an attempt to undermine Mamdani and create budget holes that complicate efforts to pay for new priorities.

Additionally, New York City must secure state legislature approval to modify many income sources. An analyst cited the state legislature stopping the city from increasing pet registration costs in a prior year due to a disagreement between the incumbent at the time and a state representative.

“The dramatic example of stating the issue is New York City can’t raise dog licensing fees without state legislature approval, and that held true previously, and it’s true now,” the expert noted.

Nonetheless, analysts point to tailwinds: Mamdani’s ideas are widely supported and would address fundamental issues. The Democratic party now hold significant control in the state government, and several see financial and political pathways to making the plans reality.

In what ways could Mamdani finance his ambitious agenda? We broke it down by funding method and proposal.

Raising Income

His team estimates it could generate approximately $10bn by increasing the corporate tax rate, levies on the wealthy, and current government revenues.

Detractors say companies and the wealthy will move away, but this is disputed by reliable studies. Additionally, the business levy is on earnings made in the state no matter where a business is based, making the argument largely moot.

Business Levy Increase

The mayor-elect calculates a state tax increase from 7.25% and eleven point five percent on business earnings would produce about $5bn, a large portion of which would be directed to New York 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 governor supports childcare for all, a highly favored initiative because child services is widely viewed as cost-prohibitive, said an expert. It would be difficult for centrist lawmakers to “resist passing a landmark initiative”, he continued. “No one says ‘We shouldn’t do anything to reduce childcare costs.’”

What’s been lacking, he said, has been a figure like Mamdani who says: “Yes, it requires funding, and we will raise taxes to get it done.”

Raising Taxes on the Wealthy

Mamdani’s plan aims to generating $4bn with a two percent hike on those earning above one million dollars each year. Though it’s a city tax, the state government must approve the increase, and the proposal is typically opposed by moderate lawmakers.

But there is a feasible route, the expert said. Raising revenue on the wealthy is broadly popular and, similar to the corporate tax increase, using the proceeds to support popular programs helps to promote in Albany.

Halt on Rent Increases

In terms of cost, a pause on rent hikes on regulated housing is the easiest to enforce – it’s nearly free. But, a halt must be approved by the rent guidelines board, and there may not be enough support on it until Mamdani fills it with his own appointments.

Free and Fast Transit

Mamdani estimates fare-free transit will cost at least $700m, which factors in an fare-dodging percentage of 48%. Analysts suggest Mamdani could likely cover the cost by optimizing or cutting other programs in the city’s $116bn annual spending plan.

Publicly Run Food Markets

A pilot program for several public food markets that would be established in underserved “areas lacking food access” is estimated at $60m and could also be paid for by adjusting priorities in the $116bn spending plan.

Building Affordable Housing Properties

Many commentators to the conservative side of Mamdani have written off the proposal to spend approximately one hundred billion dollars building 200,000 affordable units over a decade, mainly because it would necessitate massive borrowing. The expert said those arguing against this point largely miss that the plan is not to borrow one hundred billion dollars at once – the debt would be accumulated and repaid in tranches over several government terms.

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

“That’s the way the plan is feasible,” the expert concluded.

Childcare for All

Establishing childcare access for all would cost between $2.5bn and twelve billion dollars by most estimates, depending on whether it is a city or state program and additional variables. Funding is the major uncertainty – will the corporate and wealth taxes pass the state capital? One analyst commented he anticipated some compromise, as often happens with big proposals.

“The things that Mamdani pledged will likely get a haircut,” the expert said. “Furthermore the governor’s expressed resistance to tax increases may just face reality – she probably cannot achieve the things she wants on the spending side without compromise on the revenue side.”