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Ambitious promises to make the city less expensive for New Yorkers catapulted 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 affordable homes.

However, making the city more affordable for inhabitants is an costly government task, and many financial experts and politicians to Mamdani’s conservative side argue he faces numerous hurdles to meaningfully deliver on his signature ideas.

Adding complexity to matters is the federal administration, which will likely withhold financial support for New York in an effort to sabotage Mamdani and create funding gaps that make it more difficult to fund fresh initiatives.

Additionally, the city must get state government approval to modify several income sources. One expert pointed to the state legislature stopping the city from increasing dog licensing fees in a prior year due to a disagreement between the then mayor and a lawmaker.

“A striking example of putting it is the City cannot increase dog licensing fees without state legislature approval, and that held true previously, and it’s true now,” the expert noted.

However, he and other experts point to tailwinds: Mamdani’s proposals are very popular and would address fundamental issues. Democrats now have large majorities in the state government, and several see financial and viable routes to making the proposals reality.

How could Mamdani pay for his ambitious agenda? We broke it down by funding method and initiative.

Generating Income

His team estimates it could raise about $10bn by increasing the corporate tax rate, levies on the wealthy, and existing fee and tax collections.

Detractors say companies and the high-earners will relocate, but this is contradicted by reliable studies. Moreover, the business levy is on earnings made in the state no matter where a company is located, making the argument largely moot.

Corporate Tax Hike

The mayor-elect estimates a rise in state taxes between seven point two five percent and 11.5% on corporate profits would produce about $5bn, much of which would be funneled to the city. The legislature and governor would have to approve the proposal. Legislative leaders have in the past supported comparable ideas, but the governor opposes raising taxes.

Yet, the governor backs universal childcare, a very popular initiative because child services is commonly seen as cost-prohibitive, said one policy director. It would be challenging for moderate Democrats to “oppose passing a historical initiative”, he continued. “Nobody argues ‘We shouldn’t do anything to reduce childcare costs.’”

The missing element, he said, has been a leader like Mamdani who says: “Yeah, it requires funding, and we’re gonna increase revenue to make it happen.”

Increasing Taxes on the Affluent

Mamdani’s plan aims to raising $4bn with a two percent hike on those earning above $1m each year. Although it’s a municipal levy, the state government must approve the increase, and the idea is typically resisted by moderate Democrats.

But there is a feasible route, the expert said. Increasing taxes on the wealthy is widely accepted and, similar to the business tax hike, allocating the funds to fund favored initiatives helps to promote in Albany.

Halt on Rent Increases

In terms of cost, a pause on rent hikes on regulated housing is the simplest to implement – it’s minimally costly. However, a freeze must be approved by the housing panel, and there may not be enough support on it until Mamdani fills it with his preferred candidates.

Fare-Free and Efficient Transit

The plan estimates fare-free transit will cost at least seven hundred million dollars, which includes an fare-dodging percentage of 48%. Observers suggest Mamdani could probably cover the cost by streamlining or reducing other programs in the municipal $116bn city budget.

City-Owned Grocery Stores

A pilot program for five city-owned grocery stores that would be built in neglected “food deserts” is projected at sixty million dollars and could additionally be funded by adjusting priorities in the $116bn budget.

Constructing Affordable Housing Properties

Numerous people to the right of Mamdani have dismissed the proposal to invest approximately $100bn building two hundred thousand low-income homes over a decade, largely because it would necessitate massive debt. The expert said those opposing this point largely miss that the plan is not to take on one hundred billion dollars immediately – the liability would be accumulated and paid down in tranches over multiple administrations.

He also stressed the plan is not for free housing, but affordable housing that would produce income to pay down loans. Furthermore, the developments could in part be privately financed.

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

Childcare for All

Implementing childcare access for all would cost between $2.5bn and twelve billion dollars by most estimates, based on whether it is a city or state program and additional variables. Financing is the big question mark – will the corporate and wealth taxes pass Albany? One analyst commented he expected negotiated adjustments, as often happens with large-scale plans.

“The things that Mamdani promised will likely be scaled back,” the expert remarked. “Furthermore the governor’s stated resistance to tax increases may just face reality – she probably cannot achieve the things she wants on the expenditure front without compromise on the tax side.”