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Ambitious promises to transform the city less expensive for New Yorkers propelled democratic socialist Zohran Mamdani to his unlikely win on election day. Included are fare-free transit, childcare for all, and a large-scale increase in low-cost housing.

However, making the city cost-effective for inhabitants is an costly government task, and many economists and politicians to Mamdani’s conservative side argue he faces numerous hurdles to effectively follow through on his signature ideas.

Adding complexity to the situation is the national government, which will likely withhold financial support for New York in an effort to undermine Mamdani and open up funding gaps that complicate efforts to fund new priorities.

Additionally, New York City must get state legislature authorization to adjust many income sources. An analyst cited the state legislature stopping the municipality from increasing pet registration costs in a prior year due to a dispute between the then mayor and a lawmaker.

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

Nonetheless, analysts point to tailwinds: Mamdani’s ideas are very popular and would solve basic problems. Democrats now have large majorities in the legislature, and some see economic and political pathways to implementing the plans a success.

How might Mamdani finance his ambitious agenda? We broke it down by revenue source and initiative.

Raising Revenue

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

Critics claim companies and the wealthy will relocate, but this is disputed by reliable studies. Moreover, the corporate tax is on profits made in the state no matter where a company is located, rendering the argument largely moot.

Business Levy Hike

The mayor-elect estimates a state tax increase between 7.25% and 11.5% on corporate profits would produce around $5bn, a large portion of which would be directed to New York City. State leaders would have to approve the proposal. State lawmakers have in the past backed similar proposals, but the state executive opposes increasing levies.

Yet, the governor supports universal childcare, a highly favored initiative because childcare is commonly seen as too expensive, said one policy director. It would be challenging for centrist lawmakers to “resist enacting a landmark program”, he continued. “No one says ‘Nothing should be done to make childcare cheaper.’”

What’s been lacking, he said, has been a leader like Mamdani who says: “Yes, it costs money, and we will raise taxes to get it done.”

Raising Taxes on the Wealthy

The proposal aims to generating $4bn with a 2% increase on those making above $1m annually. Though it’s a municipal levy, the state legislature must approve the rise, and the idea is typically opposed by centrist Democrats.

But there is a political pathway, the expert noted. Raising revenue on the rich is broadly popular and, as with the corporate tax increase, allocating the proceeds to support popular programs helps to sell in the state capital.

Halt on Rent Increases

Regarding cost, a pause on rent hikes on rent-controlled apartments is the easiest to enforce – it’s nearly free. However, a halt must be authorized 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 Buses

The plan estimates free buses will cost a minimum of seven hundred million dollars, which includes an evasion rate of forty-eight percent. Observers say Mamdani could probably cover the expense by streamlining or reducing other programs in the city’s $116bn city budget.

City-Owned Food Markets

A pilot program for several public food markets that would be established in neglected “areas lacking food access” is projected at sixty million dollars and could additionally be paid for by adjusting focus in the $116bn spending plan.

Constructing Affordable Housing Units

Many commentators to the right of Mamdani have written off the plan to spend about $100bn developing two hundred thousand low-income homes over 10 years, mainly because it would require massive borrowing. The expert said those arguing against this point largely overlook that the plan is not to borrow one hundred billion dollars at once – the liability would be accrued and paid down in phases over multiple administrations.

He also stressed the proposal is not for no-cost homes, but cost-effective residences that would generate revenue to pay down debt. Furthermore, the developments could partially be funded by private investment.

“This is how the proposal is feasible,” he concluded.

Universal Childcare

Implementing childcare access for all would require between two point five billion dollars and twelve billion dollars by many projections, depending on whether it is a city or state program and additional variables. Financing is the big question mark – can the business and high-earner levies pass Albany? An expert said he anticipated some compromise, as often happens with big proposals.

“Proposals that Mamdani promised will probably get a haircut,” he remarked. “Furthermore the state leader’s expressed resistance to tax increases could confront practical limits – she probably cannot achieve the objectives she wants on the expenditure front without some flexibility on the revenue side.”