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Bold promises to make the city more affordable for New Yorkers propelled progressive candidate Zohran Mamdani to his surprising win on Tuesday. Among them are free buses, childcare for all, and a massive increase in affordable homes.

However, turning the city more affordable for residents is an expensive government task, and numerous economists and politicians to Mamdani’s right argue he faces numerous obstacles to meaningfully deliver on his key proposals.

Further complicating the situation is the national government, which will almost certainly pull funding for New York in an effort to sabotage Mamdani and create budget holes that complicate efforts to fund fresh initiatives.

Additionally, the city must get state government approval to adjust several revenue streams. An analyst pointed to the state legislature blocking the city from increasing pet registration costs in a prior year due to a dispute between the incumbent at the time and a lawmaker.

“A striking way of stating the issue is New York City can’t raise pet permit charges without state approval, and that held true previously, and it’s true now,” the expert said.

However, he and other experts point to tailwinds: Mamdani’s proposals are very popular and would solve fundamental issues. The Democratic party now have large majorities in the state government, and some see economic and political pathways to making the proposals reality.

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

Generating Income

The Mamdani campaign projects it could generate about $10bn by raising the corporate tax rate, levies on the affluent, and existing fee and tax collections.

Detractors say businesses and the wealthy will relocate, but that is contradicted by reliable studies. Additionally, the corporate tax is on profits made in the region no matter where a business is located, making the point at least partially moot.

Business Levy Hike

Mamdani calculates a state tax increase from seven point two five percent and 11.5% on corporate profits would produce about $5bn, much of which would be directed to the city. The legislature and governor would have to authorize the proposal. State lawmakers have in the past supported similar proposals, but the governor is against increasing levies.

However, the state leader supports childcare for all, a very popular proposal because childcare is widely viewed as too expensive, stated one policy director. It would be challenging for moderate Democrats to “resist enacting a historical initiative”, he continued. “No one argues ‘We shouldn’t do anything to make childcare cheaper.’”

What’s been lacking, the expert said, has been a figure like Mamdani who says: “Yes, it costs money, and we’re gonna raise taxes to get it done.”

Increasing Levies on the Wealthy

The proposal calls for raising four billion dollars with a 2% increase on those earning above one million dollars annually. Though it’s a municipal levy, the state government must authorize the increase, and the idea is generally resisted by moderate lawmakers.

But there is a political pathway, he noted. Increasing revenue on the rich is widely accepted and, similar to the corporate tax increase, using the proceeds to fund popular programs helps to sell in Albany.

Rent Freeze

Regarding expense, a pause on rent hikes on regulated housing is the easiest to implement – it’s minimally costly. But, a halt must be approved by the housing panel, and there may not be enough support on it until Mamdani appoints members with his preferred candidates.

Fare-Free and Efficient Transit

The plan estimates free buses will require a minimum of seven hundred million dollars, which factors in an fare-dodging percentage of 48%. Observers suggest Mamdani could probably cover the cost by streamlining or reducing other programs in the city’s $116bn city budget.

City-Owned Food Markets

A trial initiative for several public food markets that would be established in neglected “areas lacking food access” is estimated at sixty million dollars and could also be paid for by shifting focus in the $116bn spending plan.

Constructing Affordable Housing Units

Numerous commentators to the right of Mamdani have written off the plan to invest about one hundred billion dollars developing two hundred thousand affordable units over 10 years, largely because it would necessitate substantial debt. The expert said those arguing against this point largely overlook that the initiative is not to borrow $100bn immediately – the debt would be accumulated and repaid in tranches over several government terms.

He also stressed the proposal does not call for no-cost homes, but cost-effective residences that would produce income to reduce loans. Moreover, the projects could partially be funded by private investment.

“This is how the plan adds up,” he said.

Childcare for All

Implementing childcare access for all would cost from $2.5bn and $12bn by most estimates, depending on whether it is a municipal or state initiative and other factors. Financing is the big question mark – can the business and high-earner levies pass Albany? One analyst commented he anticipated negotiated adjustments, as is typical with big proposals.

“The things that Mamdani pledged will likely get a haircut,” the expert remarked. “And the state leader’s stated opposition to revenue hikes may just face reality – she likely can’t get the things she wants on the spending side without some flexibility on the tax side.”