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Bold promises to transform the city more affordable for residents propelled democratic socialist Zohran Mamdani to his surprising win on Tuesday. Among them are free buses, childcare for all, and a large-scale expansion in affordable homes.

However, turning the city more affordable for inhabitants is an expensive public undertaking, and many economists and elected officials to Mamdani’s conservative side say he faces too many hurdles to meaningfully deliver on his key proposals.

Further complicating matters is the national government, which will likely withhold financial support for New York in an effort to sabotage Mamdani and create budget holes that make it more difficult to fund new priorities.

Additionally, the city must secure state government approval to adjust several income sources. An analyst pointed to the state assembly stopping the city from increasing pet registration costs in 2014 due to a dispute between the incumbent at the time and a lawmaker.

“A striking way of stating the issue is the City can’t raise dog licensing fees without state legislature approval, and it was true then, and it’s true now,” the expert noted.

However, analysts point to tailwinds: Mamdani’s proposals are very popular and would address basic problems. The Democratic party now have significant control in the legislature, and several see financial and political pathways to making the proposals reality.

In what ways might Mamdani pay for his ambitious agenda? Here’s a detailed look by funding method and proposal.

Raising Revenue

The Mamdani campaign projects it could generate about $10bn by increasing the business tax, levies on the affluent, and current government revenues.

Detractors say companies and the high-earners will relocate, but this is disputed by credible research. Moreover, the business levy is on profits made in the region no matter where a company is located, making the point at least partially moot.

Business Levy Hike

The mayor-elect estimates a state tax increase between seven point two five percent and 11.5% on business earnings would produce about $5bn, a large portion of which would be funneled to the city. The legislature and governor would have to approve the plan. State lawmakers have in the past supported similar proposals, but the state executive opposes raising taxes.

However, the governor supports universal childcare, a very popular proposal because child services is widely viewed as cost-prohibitive, stated one policy director. It would be challenging for moderate Democrats to “resist enacting a historical program”, he added. “No one argues ‘Nothing should be done to reduce childcare costs.’”

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

Raising Taxes on the Affluent

Mamdani’s plan calls for generating $4bn with a 2% hike on those making more than $1m annually. Though it’s a municipal levy, the state government must approve the increase, and the idea is typically opposed by centrist lawmakers.

However there is a feasible route, he said. Raising revenue on the wealthy is widely accepted and, as with the corporate tax increase, allocating the funds to fund favored initiatives helps to sell in Albany.

Halt on Rent Increases

Regarding expense, a rent freeze on regulated housing is the simplest to implement – it’s nearly free. But, a freeze must be approved by the rent guidelines board, and there may not be sufficient backing on it until Mamdani fills it with his own appointments.

Fare-Free and Efficient Transit

Mamdani estimates free buses will cost at least $700m, which includes an evasion rate of forty-eight percent. Observers say Mamdani could probably pay for the expense by optimizing or cutting additional services in the city’s $116bn city budget.

Publicly Run Grocery Stores

A trial initiative for several public food markets that would be built in neglected “food deserts” is estimated at $60m and could additionally be paid for by shifting priorities in the $116bn spending plan.

Constructing Affordable Housing Properties

Many people to the conservative side of Mamdani have dismissed the proposal to spend approximately $100bn developing 200,000 affordable units over 10 years, largely because it would require substantial borrowing. He clarified those opposing this aspect mostly miss that the plan is not to take on one hundred billion dollars immediately – the liability would be accrued and repaid in tranches over several government terms.

He emphasized the proposal is not for free housing, but affordable housing that would generate revenue to pay down debt. Moreover, the developments could in part be privately financed.

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

Childcare for All

Establishing childcare access for all would cost between two point five billion dollars and $12bn by most estimates, depending on whether it is a city or state program and other factors. Financing is the big question mark – will the corporate and wealth taxes pass the state capital? An expert said he anticipated some compromise, as often happens with big proposals.

“The things that Mamdani pledged will probably be scaled back,” he said. “Furthermore the state leader’s stated resistance to tax increases could face reality – she likely cannot achieve the things she desires on the spending side without some flexibility on the revenue side.”