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Bold pledges to make the city more affordable for New Yorkers propelled democratic socialist Zohran Mamdani to his surprising win on Tuesday. Among them are fare-free transit, childcare for all, and a large-scale expansion in low-cost housing.

However, making the city more affordable for inhabitants is an costly government task, and numerous economists and elected officials to Mamdani’s right argue he faces numerous obstacles to effectively follow through on his signature ideas.

Further complicating the situation is the national government, which will likely withhold financial support for New York in an effort to sabotage Mamdani and open up funding gaps that complicate efforts to fund new priorities.

Additionally, the city must secure state government approval to adjust many income sources. One expert cited the state assembly blocking the city from increasing pet registration costs in a prior year due to a dispute between the then mayor and a state representative.

“A striking example of putting it is New York City can’t raise pet permit charges without state approval, and it was true then, and it’s true now,” he said.

Nonetheless, analysts highlight tailwinds: Mamdani’s proposals are widely supported and would address basic problems. Democrats now have significant control in the state government, and some identify economic and viable routes to implementing the proposals a success.

In what ways might Mamdani finance his ambitious program? We broke it down by revenue source and proposal.

Generating Income

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

Critics say businesses and the wealthy will move away, but that is contradicted by credible research. Additionally, the corporate tax is on profits made in the state regardless of where a business is based, rendering the point largely irrelevant.

Business Levy Hike

The mayor-elect calculates a state tax increase from 7.25% and 11.5% on corporate profits would generate about $5bn, a large portion of which would be directed to New York City. The legislature and governor would have to approve the proposal. State lawmakers have previously backed comparable ideas, but the governor opposes increasing levies.

Yet, the state leader backs childcare for all, a very popular proposal because child services is widely viewed as cost-prohibitive, said one policy director. It would be challenging for moderate Democrats to “resist enacting a historical initiative”, he continued. “Nobody argues ‘Nothing should be done to make childcare cheaper.’”

The missing element, he said, has been a leader like Mamdani who declares: “Yes, it requires funding, and we will raise taxes to get it done.”

Raising Taxes on the Affluent

The proposal calls for raising four billion dollars with a 2% increase on those making above one million dollars each year. Although it’s a city tax, the state legislature must authorize the increase, and the proposal is generally opposed by moderate Democrats.

But there is a political pathway, he said. Raising revenue on the rich is widely accepted and, as with the corporate tax increase, allocating the funds to support popular programs helps to promote in the state capital.

Rent Freeze

Regarding expense, a rent freeze on rent-controlled apartments 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 before Mamdani appoints members with his preferred candidates.

Free and Fast Transit

The plan estimates fare-free transit will require at least seven hundred million dollars, which factors in an evasion rate of forty-eight percent. Analysts suggest Mamdani could likely pay for the cost by optimizing or cutting other programs in the city’s one hundred sixteen billion dollar city budget.

City-Owned Grocery Stores

A trial initiative for several public food markets that would be built in neglected “food deserts” is projected at sixty million dollars and could also be paid for by adjusting focus in the one hundred sixteen billion dollar budget.

Building Affordable Housing Units

Many people to the right of Mamdani have dismissed the proposal to invest approximately $100bn developing two hundred thousand affordable units over a decade, mainly because it would necessitate massive borrowing. He clarified those opposing this point mostly overlook that the plan is not to take on $100bn immediately – the debt would be accumulated and paid down in tranches over several government terms.

He also stressed the plan does not call for no-cost homes, but cost-effective residences that would generate revenue to reduce debt. Moreover, the developments could partially be funded by private investment.

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

Childcare for All

Implementing universal childcare would require between two point five billion dollars and $12bn by most estimates, based on whether it is a municipal or state initiative and additional variables. Financing is the major uncertainty – will the corporate and wealth taxes pass Albany? An expert said he expected negotiated adjustments, as often happens with large-scale plans.

“Proposals that Mamdani pledged will probably get a haircut,” he said. “Furthermore the state leader’s expressed resistance to tax increases may just face reality – she probably cannot achieve the objectives she wants on the spending side without some flexibility on the revenue side.”