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Bold pledges to transform the city less expensive for residents catapulted democratic socialist Zohran Mamdani to his surprising win on Tuesday. Among them are fare-free transit, universal childcare, and a massive increase in affordable homes.

However, turning the urban center cost-effective for residents is an costly public undertaking, and many financial experts and politicians to Mamdani’s right argue he faces too many obstacles to meaningfully deliver on his key proposals.

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

Additionally, the city must get state legislature authorization to adjust several income sources. An analyst cited the state assembly blocking the city from increasing dog licensing fees in 2014 due to a dispute between the then mayor and a state representative.

“The dramatic way of putting it is New York City can’t raise pet permit charges without state legislature approval, and it was true then, and it’s true now,” he said.

However, analysts point to tailwinds: Mamdani’s proposals are very popular and would solve basic problems. Democrats now have large majorities in the state government, and several identify financial and political pathways to implementing the plans a success.

In what ways might Mamdani pay for his bold program? Here’s a detailed look by revenue source and proposal.

Generating Revenue

His team projects it could raise about $10bn by increasing the corporate tax rate, levies on the affluent, and current government revenues.

Detractors say businesses and the high-earners will move away, but that is contradicted by credible research. Moreover, the business levy is on profits made in the state no matter where a company is based, making the point largely irrelevant.

Corporate Tax Hike

Mamdani calculates a rise in state taxes from 7.25% and eleven point five percent on corporate profits would produce about $5bn, much of which would be directed to New York City. State leaders would have to approve the plan. Legislative leaders have in the past backed similar proposals, but the state executive is against increasing levies.

Yet, the governor supports childcare for all, a very popular proposal because childcare is commonly seen as cost-prohibitive, stated an expert. It would be difficult for moderate Democrats to “resist passing a landmark initiative”, he continued. “Nobody says ‘Nothing should be done to reduce childcare costs.’”

The missing element, the expert said, has been a leader like Mamdani who says: “Yes, it requires funding, and we’re gonna increase revenue to get it done.”

Raising Levies on the Affluent

Mamdani’s plan calls for raising $4bn with a 2% hike on those making above $1m each year. Although it’s a municipal levy, the state government must approve the increase, and the proposal is generally opposed by centrist lawmakers.

But there is a feasible route, the expert said. Raising revenue on the wealthy is widely accepted and, as with the corporate tax increase, using the proceeds to fund favored initiatives makes it easier to promote in the state capital.

Halt on Rent Increases

Regarding expense, a rent freeze on rent-controlled apartments is the easiest to enforce – it’s minimally costly. However, a freeze must be authorized by the rent guidelines board, and there might not exist enough support on it before Mamdani fills it with his own appointments.

Fare-Free and Efficient Transit

The plan projects free buses will require at least $700m, which includes an fare-dodging percentage of 48%. Observers say Mamdani could probably cover the expense by optimizing or reducing additional services in the city’s $116bn annual spending plan.

City-Owned Grocery Stores

A trial initiative for five public food markets that would be built in neglected “areas lacking food access” is estimated at sixty million dollars and could also be funded by shifting priorities in the $116bn spending plan.

Building Low-Cost Homes Properties

Numerous commentators to the conservative side of Mamdani have dismissed the plan to spend approximately $100bn developing 200,000 low-income homes over 10 years, largely because it would necessitate massive borrowing. He clarified those opposing this point largely miss that the plan is not to take on one hundred billion dollars at once – the liability would be accrued and paid down in tranches over several government terms.

He also stressed the proposal is not for free housing, but cost-effective residences that would produce income to pay down loans. Moreover, the projects could in part be funded by private investment.

“This is how the proposal adds up,” the expert said.

Universal Childcare

Establishing universal childcare would require between two point five billion dollars and $12bn by most estimates, based on whether it is a municipal or state initiative and additional variables. Funding is the major uncertainty – will the business and high-earner levies pass the state capital? An expert commented he anticipated negotiated adjustments, as is typical with large-scale plans.

“The things that Mamdani promised will probably get a haircut,” he remarked. “And the governor’s stated opposition to revenue hikes could face reality – she probably cannot achieve the things she wants on the expenditure front without some flexibility on the revenue side.”