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Ambitious pledges to make the metropolis less expensive for New Yorkers propelled democratic socialist Zohran Mamdani to his unlikely win on election day. Included are fare-free transit, universal childcare, and a large-scale expansion in low-cost housing.

However, turning the city cost-effective for residents is an costly government task, and many economists and politicians to Mamdani’s right argue he faces numerous hurdles to meaningfully deliver on his signature ideas.

Further complicating the situation is the federal administration, which will likely withhold financial support for the city in an effort to undermine Mamdani and open up budget holes that complicate efforts to fund new priorities.

Additionally, New York City must secure state government approval to modify many income sources. One expert cited the state assembly blocking the city from increasing dog licensing fees in 2014 due to a disagreement between the then mayor and a state representative.

“A striking way of putting it is the City can’t raise pet permit charges without state legislature approval, and it was true then, and it remains the case today,” he noted.

Nonetheless, analysts highlight tailwinds: Mamdani’s proposals are widely supported and would address basic problems. The Democratic party now hold large majorities in the state government, and several identify economic and viable routes to making the proposals a success.

How could Mamdani pay for his ambitious program? We broke it down by revenue source and proposal.

Generating Income

The Mamdani campaign estimates it could generate approximately $10bn by increasing the corporate tax rate, levies on the affluent, and existing fee and tax collections.

Detractors claim businesses and the high-earners will move away, but this is disputed by credible research. Additionally, the business levy is on profits made in the state regardless of where a company is based, making the point at least partially moot.

Business Levy Increase

The mayor-elect estimates a rise in state taxes from 7.25% and 11.5% on business earnings would produce around five billion dollars, much of which would be funneled to the city. State leaders would have to authorize the proposal. State lawmakers have previously supported similar proposals, but the governor opposes raising taxes.

Yet, the governor supports universal childcare, a very popular initiative because childcare is widely viewed as cost-prohibitive, stated one policy director. It would be challenging for moderate Democrats to “oppose enacting a landmark initiative”, he added. “Nobody argues ‘We shouldn’t do anything to reduce childcare costs.’”

The missing element, he explained, has been a leader like Mamdani who says: “Yes, it costs money, and we will raise taxes to make it happen.”

Raising Levies on the Wealthy

Mamdani’s plan calls for raising $4bn with a 2% hike on those making above one million dollars annually. Although it’s a municipal levy, the state government must approve the increase, and the idea is typically resisted by centrist Democrats.

But there is a political pathway, the expert noted. Raising taxes on the wealthy is broadly popular and, as with the business tax hike, allocating the funds to fund popular programs helps to sell in the state capital.

Rent Freeze

Regarding cost, a rent freeze on rent-controlled apartments is the simplest to implement – it’s nearly free. But, a halt must be authorized by the housing panel, and there may not be enough support on it until Mamdani appoints members with his own appointments.

Fare-Free and Efficient Transit

Mamdani projects free buses will cost a minimum of $700m, which includes an evasion rate of forty-eight percent. Analysts say Mamdani could probably cover the expense by streamlining or reducing additional services in the city’s $116bn annual spending plan.

City-Owned Grocery Stores

A trial initiative for several city-owned grocery stores that would be built in neglected “food deserts” is estimated at $60m and could also be paid for by shifting priorities in the $116bn budget.

Building Low-Cost Homes Properties

Numerous commentators to the conservative side of Mamdani have dismissed the plan to spend approximately $100bn building two hundred thousand low-income homes over a decade, largely because it would require massive borrowing. He clarified those arguing against this point largely overlook that the plan is not to take on $100bn at once – the liability would be accrued and paid down in phases over multiple administrations.

He emphasized the plan does not call for free housing, 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 proposal is feasible,” he concluded.

Universal Childcare

Implementing childcare access for all would require between two point five billion dollars and $12bn by most estimates, depending on whether it is a municipal or state initiative and other factors. Funding is the big question mark – will the business and high-earner levies be approved in Albany? One analyst commented he expected some compromise, as is typical with large-scale plans.

“The things that Mamdani promised will likely get a haircut,” he remarked. “Furthermore the governor’s stated resistance to revenue hikes could face reality – she probably cannot achieve the things she desires on the spending side without compromise on the tax side.”