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Ambitious pledges to make the metropolis more affordable for residents catapulted progressive candidate Zohran Mamdani to his unlikely victory on election day. Among them are fare-free transit, universal childcare, and a large-scale expansion in affordable homes.

However, turning the city more affordable for residents is an expensive government task, and many economists and elected officials to Mamdani’s right argue he faces too many hurdles to effectively follow through on his key proposals.

Further complicating the situation is the national government, which will likely withhold financial support for the city in an effort to sabotage Mamdani and create funding gaps that make it more difficult to fund fresh initiatives.

Additionally, the city must secure state government authorization to modify several revenue streams. An analyst cited the state assembly blocking the city from increasing pet registration costs in a prior year due to a dispute between the incumbent at the time and a lawmaker.

“The dramatic way of stating the issue is the City can’t raise pet permit charges without state legislature approval, and it was true then, and it’s true now,” the expert said.

Nonetheless, analysts highlight tailwinds: Mamdani’s proposals are widely supported and would address fundamental issues. Democrats now have large majorities in the state government, and some see economic and political pathways to implementing the proposals reality.

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

Raising Revenue

The Mamdani campaign projects it could generate about ten billion dollars by raising the business tax, taxes on the wealthy, and existing fee and tax collections.

Critics say businesses and the wealthy will move away, but that is contradicted by credible research. Moreover, the business levy is on profits made in the region regardless of where a company is located, making the point largely irrelevant.

Business Levy Hike

The mayor-elect estimates a state tax increase from 7.25% and eleven point five percent on corporate profits would produce around five billion dollars, a large portion of which would be funneled to the city. State leaders would have to authorize the plan. Legislative leaders have previously backed comparable ideas, but the state executive is against increasing levies.

Yet, the state leader supports childcare for all, a very popular proposal because child services is commonly seen as cost-prohibitive, said one policy director. It would be difficult for centrist lawmakers to “oppose enacting a landmark initiative”, he continued. “Nobody says ‘Nothing should be done to reduce childcare costs.’”

The missing element, the expert explained, has been a figure like Mamdani who declares: “Yeah, it costs money, and we’re gonna raise taxes to get it done.”

Increasing Levies on the Affluent

The proposal aims to generating $4bn with a two percent increase on those earning above $1m each year. Although it’s a city tax, the state government must approve the rise, and the idea is generally opposed by centrist Democrats.

But there is a feasible route, he said. Increasing revenue on the wealthy is broadly popular and, as with the business tax hike, using the funds to support favored initiatives helps to sell in Albany.

Halt on Rent Increases

In terms of cost, a rent freeze on rent-controlled apartments is the easiest to enforce – it’s nearly free. But, a halt must be authorized by the rent guidelines board, and there might not exist sufficient backing on it until Mamdani appoints members with his preferred candidates.

Free and Fast Transit

The plan estimates fare-free transit will cost at least $700m, which includes an fare-dodging percentage of 48%. Analysts suggest Mamdani could probably cover the cost by optimizing or cutting additional services in the city’s $116bn annual spending plan.

Publicly Run Food Markets

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

Constructing Low-Cost Homes Units

Many people to the right of Mamdani have dismissed the proposal to invest approximately $100bn developing 200,000 affordable units over a decade, largely because it would require massive debt. The expert said those opposing this point mostly overlook that the initiative is not to borrow $100bn at once – the liability would be accumulated and paid down in tranches over several government terms.

He emphasized the proposal does not call for free housing, but cost-effective residences that would produce income to reduce debt. Moreover, the projects could in part be privately financed.

“That’s the way the plan adds up,” the expert said.

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. Financing is the big question mark – will the corporate and wealth taxes pass Albany? One analyst commented he expected negotiated adjustments, as is typical with big proposals.

“Proposals that Mamdani promised will probably get a haircut,” the expert said. “Furthermore the governor’s expressed opposition to tax increases may just confront practical limits – she likely cannot achieve the objectives she wants on the spending side without some flexibility on the tax side.”