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Ambitious promises to make the city more affordable for New Yorkers catapulted progressive candidate Zohran Mamdani to his unlikely win on Tuesday. Included are free buses, universal childcare, and a massive expansion in affordable homes.

However, making the city cost-effective for inhabitants is an expensive government task, and many financial experts and politicians to Mamdani’s right argue he faces numerous hurdles to effectively follow through on his signature ideas.

Further complicating matters is the national government, which will almost certainly pull funding for New York in an effort to undermine Mamdani and create funding gaps that complicate efforts to fund new priorities.

Additionally, the city must get state government authorization to modify many income sources. An analyst pointed to the state legislature stopping the municipality from raising pet registration costs in 2014 due to a disagreement between the then mayor and a lawmaker.

“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 remains the case today,” the expert noted.

However, analysts point to tailwinds: Mamdani’s proposals are widely supported and would solve fundamental issues. Democrats now have significant control in the state government, and several see economic and political pathways to making the plans a success.

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

Raising Revenue

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

Detractors claim businesses and the high-earners will move away, but that is disputed by reliable studies. Additionally, the business levy is on earnings made in the state no matter where a company is located, rendering the argument largely moot.

Business Levy Hike

The mayor-elect estimates a state tax increase from 7.25% and 11.5% on business earnings would produce around $5bn, much of which would be funneled to New York City. State leaders would have to approve the proposal. Legislative leaders have in the past supported comparable ideas, but the governor is against increasing levies.

Yet, the governor backs universal childcare, a very popular initiative because childcare is commonly seen as cost-prohibitive, said one policy director. It would be challenging for centrist lawmakers to “resist passing a historical program”, he continued. “No one says ‘We shouldn’t do anything to reduce childcare costs.’”

The missing element, the expert explained, has been a leader like Mamdani who declares: “Yes, it costs money, and we’re gonna increase revenue to get it done.”

Raising Levies on the Wealthy

Mamdani’s plan calls for generating $4bn with a two percent hike on those making more than $1m each year. Though it’s a municipal levy, the state legislature must approve the rise, and the idea is generally opposed by moderate Democrats.

But there is a feasible route, he said. Increasing taxes on the rich is broadly popular and, as with the corporate tax increase, using the funds to fund favored initiatives helps to sell in the state capital.

Halt on Rent Increases

In terms of cost, a rent freeze on rent-controlled apartments is the simplest to implement – it’s nearly free. However, a freeze must be approved by the rent guidelines board, and there might not exist sufficient backing on it before Mamdani appoints members with his preferred candidates.

Fare-Free and Efficient Buses

Mamdani estimates fare-free transit will cost a minimum of $700m, which includes an evasion rate of forty-eight percent. Analysts say Mamdani could probably pay for the cost by optimizing or reducing other programs in the municipal one hundred sixteen billion dollar city budget.

Publicly Run Grocery Stores

A pilot program for five public food markets that would be established in neglected “areas lacking food access” is projected at $60m and could additionally be funded by adjusting priorities in the $116bn budget.

Building Low-Cost Homes Properties

Many commentators to the right of Mamdani have dismissed the proposal to spend approximately $100bn developing 200,000 affordable units over a decade, mainly because it would necessitate substantial borrowing. He said those arguing against this point largely overlook that the plan is does not involve to take on $100bn at once – the liability would be accrued and repaid in phases over multiple administrations.

He emphasized the plan is not for no-cost homes, but cost-effective residences that would produce income to pay down loans. Moreover, the developments could in part be privately financed.

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

Childcare for All

Implementing childcare access for all would require between two point five billion dollars and twelve billion dollars by most estimates, based on whether it is a city or state program and other factors. Funding is the major uncertainty – will the business and high-earner levies pass Albany? One analyst said he expected some compromise, as often happens with big proposals.

“The things that Mamdani promised will likely get a haircut,” he said. “Furthermore the governor’s expressed opposition to tax increases could face reality – she probably cannot achieve the things she wants on the spending side without some flexibility on the revenue side.”