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Ambitious promises to transform the metropolis less expensive for New Yorkers catapulted democratic socialist Zohran Mamdani to his surprising win on election day. 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 residents is an costly public undertaking, and numerous financial experts and elected officials to Mamdani’s conservative side argue he confronts numerous hurdles to effectively follow through on his signature ideas.

Further complicating matters is the national government, which will almost certainly pull funding for the city in an attempt to undermine Mamdani and open up funding gaps that complicate efforts to pay for new priorities.

Additionally, the city must get state legislature approval to modify many revenue streams. One expert pointed to the state legislature blocking the municipality from increasing pet registration costs in 2014 due to a disagreement between the incumbent at the time and a state representative.

“A striking way of putting it is the City cannot increase dog licensing fees without state approval, and it was true then, and it’s true now,” he noted.

However, analysts point to favorable conditions: Mamdani’s ideas are very popular and would solve basic problems. The Democratic party now hold significant control in the legislature, and some see financial and political pathways to implementing the plans a success.

How could Mamdani finance his ambitious program? We broke it down by revenue source and proposal.

Raising Income

His team projects it could raise approximately $10bn by raising the business tax, taxes on the affluent, and existing fee and tax collections.

Detractors say businesses and the high-earners will move away, but this is disputed by reliable studies. Moreover, the corporate tax is on profits made in the state regardless of where a business is based, rendering the argument largely moot.

Corporate Tax Hike

Mamdani estimates a rise in state taxes from seven point two five percent and 11.5% on business earnings would generate around five billion dollars, much of which would be directed to New York City. State leaders would have to authorize the plan. Legislative leaders have previously supported comparable ideas, but the state executive is against increasing levies.

However, the state leader backs universal childcare, a highly favored initiative because childcare is commonly seen as cost-prohibitive, stated an expert. It would be difficult for centrist lawmakers to “resist enacting a landmark initiative”, he continued. “Nobody says ‘We shouldn’t do anything to make childcare cheaper.’”

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

Increasing Taxes on the Wealthy

Mamdani’s plan aims to generating four billion dollars with a 2% hike on those earning above $1m each year. Though it’s a municipal levy, the state legislature must approve the increase, and the proposal is typically resisted by centrist lawmakers.

But there is a feasible route, the expert said. Increasing taxes on the rich is broadly popular and, similar to the business tax hike, allocating the funds to fund popular programs helps to sell in the state capital.

Halt on Rent Increases

Regarding cost, a rent freeze on regulated housing is the simplest to implement – it’s minimally costly. However, a halt must be authorized by the rent guidelines board, and there might not exist enough support on it before Mamdani appoints members with his own appointments.

Fare-Free and Efficient Buses

Mamdani projects free buses will cost at least $700m, which factors in an fare-dodging percentage of 48%. Observers say Mamdani could probably pay for the expense by optimizing or reducing other programs in the city’s $116bn city budget.

City-Owned Grocery Stores

A pilot program for five city-owned grocery stores that would be built in underserved “areas lacking food access” is projected at $60m and could also be funded by shifting priorities in the one hundred sixteen billion dollar spending plan.

Building Affordable Housing Properties

Numerous commentators to the right of Mamdani have written off the plan to invest approximately $100bn building two hundred thousand low-income homes over 10 years, mainly because it would require substantial debt. He said those arguing against this aspect largely overlook that the initiative is not to borrow one hundred billion dollars at once – the liability would be accumulated and repaid in phases over multiple administrations.

He also stressed 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.

Childcare for All

Establishing childcare access for all would cost from $2.5bn and twelve billion dollars by most estimates, depending on whether it is a city or state program and other factors. Financing is the big question mark – can the corporate and wealth taxes be approved in the state capital? An expert said he anticipated negotiated adjustments, as often happens with large-scale plans.

“The things that Mamdani pledged will likely be scaled back,” he remarked. “Furthermore the state leader’s expressed resistance to revenue hikes could face reality – she likely can’t get the things she desires on the spending side without some flexibility on the tax side.”