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Ambitious promises to make the city more affordable for New Yorkers catapulted progressive candidate Zohran Mamdani to his surprising victory on Tuesday. Included are free buses, childcare for all, and a massive increase in low-cost housing.

However, turning the city more affordable for residents is an expensive public undertaking, and many financial experts and elected officials to Mamdani’s conservative side argue he confronts too many obstacles to effectively follow through on his signature ideas.

Further complicating the situation is the federal administration, which will almost certainly pull funding for New York in an effort to sabotage Mamdani and create funding gaps that make it more difficult to pay for fresh initiatives.

Additionally, New York City must secure state legislature approval to adjust many revenue streams. An analyst cited the state legislature blocking the municipality from increasing pet registration costs in 2014 due to a dispute between the incumbent at the time and a lawmaker.

“The dramatic way of putting it is the City can’t raise pet permit charges without state legislature approval, and that held true previously, and it remains the case today,” he said.

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

How might Mamdani finance his ambitious agenda? We broke it down by funding method and initiative.

Raising Revenue

The Mamdani campaign projects it could generate approximately $10bn by raising the corporate tax rate, taxes on the wealthy, and existing fee and tax collections.

Detractors claim companies and the wealthy will move away, but that is disputed by reliable studies. Moreover, the corporate tax is on profits made in the state no matter where a business is based, rendering the point at least partially irrelevant.

Business Levy Hike

Mamdani calculates a state tax increase from 7.25% and eleven point five percent on business earnings would generate around five billion dollars, a large portion of which would be funneled to the city. State leaders would have to approve the proposal. State lawmakers have previously supported similar proposals, but the governor opposes raising taxes.

However, the state leader supports childcare for all, a very popular initiative because child services is widely viewed as cost-prohibitive, stated one policy director. It would be challenging for centrist lawmakers to “oppose passing a landmark program”, he continued. “No one argues ‘We shouldn’t do anything to make childcare cheaper.’”

The missing element, the expert explained, has been a leader like Mamdani who declares: “Yes, it costs money, and we will increase revenue to make it happen.”

Raising Taxes on the Wealthy

Mamdani’s plan calls for raising four billion dollars with a 2% hike on those making above one million dollars each year. Though it’s a city tax, the state legislature must approve the increase, and the proposal is typically resisted by moderate lawmakers.

But there is a political pathway, he said. Increasing revenue on the wealthy is broadly popular and, similar to the business tax hike, using the proceeds to fund favored initiatives makes it easier to promote in the state capital.

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 authorized by the rent guidelines board, and there might not exist sufficient backing on it until Mamdani appoints members with his own appointments.

Free and Fast Buses

Mamdani estimates free buses will cost at least seven hundred million dollars, which includes an fare-dodging percentage of forty-eight percent. Observers say Mamdani could probably pay for the expense by streamlining or reducing additional services in the city’s $116bn annual spending plan.

City-Owned Food Markets

A trial initiative for several public food markets that would be established in underserved “food deserts” is estimated at $60m and could also be funded by adjusting priorities in the $116bn budget.

Constructing Low-Cost Homes Units

Numerous commentators to the right of Mamdani have dismissed the proposal to invest approximately $100bn building 200,000 affordable units over 10 years, mainly because it would require substantial debt. He clarified those opposing this point mostly miss that the plan is does not involve to take on $100bn at once – the liability would be accumulated and repaid in phases over several government terms.

He emphasized the plan does not call for free housing, but affordable housing that would generate revenue to reduce loans. Moreover, the developments could in part be funded by private investment.

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

Universal Childcare

Establishing childcare access for all would require between $2.5bn and twelve billion dollars by most estimates, based on whether it is a city or state program and other factors. Funding is the big question mark – will the business and high-earner levies be approved in Albany? An expert commented he anticipated negotiated adjustments, as is typical with large-scale plans.

“The things that Mamdani promised will likely be scaled back,” the expert said. “Furthermore the governor’s stated opposition to revenue hikes could confront practical limits – she likely cannot achieve the objectives she wants on the spending side without some flexibility on the revenue side.”