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Bold promises to make the city less expensive for residents catapulted democratic socialist Zohran Mamdani to his surprising win on election day. Included are free buses, childcare for all, and a massive increase in low-cost housing.

However, making the urban center cost-effective for inhabitants is an costly public undertaking, and many financial experts and elected officials to Mamdani’s conservative side argue he confronts numerous hurdles to effectively follow through on his key proposals.

Adding complexity to matters is the national government, which will almost certainly pull funding for the city in an effort to undermine Mamdani and create budget holes that complicate efforts to fund fresh initiatives.

Additionally, the city must get state legislature approval to modify many income sources. An analyst pointed to the state legislature stopping the municipality from raising dog licensing fees in 2014 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 approval, and it was true then, and it remains the case today,” he noted.

However, analysts point to favorable conditions: Mamdani’s ideas are very popular and would address fundamental issues. Democrats now have significant control in the legislature, and several see economic and viable routes to making the proposals reality.

In what ways might Mamdani pay for his ambitious agenda? We broke it down by revenue source and proposal.

Raising Income

His team projects it could generate approximately $10bn by raising the corporate tax rate, taxes on the wealthy, and existing fee and tax collections.

Detractors claim companies and the wealthy will move away, but that is disputed by reliable studies. Moreover, the corporate tax is on earnings made in the state regardless of where a business is located, making the argument largely irrelevant.

Corporate Tax Increase

The mayor-elect calculates a rise in state taxes between seven point two five percent and eleven point five percent on corporate profits would produce around five billion dollars, a large portion of which would be directed to New York City. State leaders would have to authorize the plan. Legislative leaders have in the past supported comparable ideas, but the governor opposes increasing levies.

However, the governor backs childcare for all, a very popular proposal because childcare is widely viewed as too expensive, said an expert. It would be difficult for centrist lawmakers to “resist enacting a historical initiative”, he added. “No one says ‘We shouldn’t do anything to reduce childcare costs.’”

What’s been lacking, he said, has been a figure like Mamdani who declares: “Yes, it requires funding, and we’re gonna raise taxes to get it done.”

Raising Levies on the Affluent

The proposal aims to raising $4bn with a two percent hike on those making above $1m each year. Although it’s a municipal levy, the state government must authorize the increase, and the idea is typically opposed by moderate Democrats.

However there is a political pathway, the expert noted. Raising taxes on the wealthy is widely accepted and, similar to the corporate tax increase, using the proceeds to fund popular programs makes it easier to promote in Albany.

Rent Freeze

In terms of expense, a rent freeze on regulated housing is the simplest to implement – it’s nearly free. However, a freeze must be authorized by the rent guidelines board, and there may not be sufficient backing on it before Mamdani fills it with his preferred candidates.

Free and Fast Transit

The plan projects free buses will require at least seven hundred million dollars, which includes an evasion rate of 48%. Observers suggest Mamdani could probably cover the cost by streamlining or reducing other programs in the city’s $116bn city budget.

Publicly Run Grocery Stores

A trial initiative for five city-owned grocery stores that would be established in underserved “areas lacking food access” is projected at sixty million dollars and could also be paid for by shifting priorities in the one hundred sixteen billion dollar budget.

Constructing Affordable Housing Units

Numerous people to the conservative side of Mamdani have dismissed the proposal to invest about one hundred billion dollars developing 200,000 low-income homes over 10 years, mainly because it would require substantial borrowing. The expert said those arguing against this point largely overlook that the plan is not to take on $100bn at once – the debt would be accrued and repaid in tranches over several government terms.

He emphasized the proposal is not for free housing, but cost-effective residences that would produce income to reduce debt. Moreover, the developments could partially be privately financed.

“This is how the plan is feasible,” the expert said.

Childcare for All

Implementing childcare access for all would cost between two point five billion dollars and twelve billion dollars by most estimates, depending on whether it is a municipal or state initiative and other factors. Financing is the big question mark – will the business and high-earner levies be approved in Albany? One analyst commented he anticipated some compromise, as often happens with big proposals.

“Proposals that Mamdani promised will probably get a haircut,” he said. “And the state leader’s stated resistance to revenue hikes could face reality – she probably can’t get the things she wants on the spending side without some flexibility on the tax side.”