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Bold promises to transform the city less expensive for residents catapulted progressive candidate Zohran Mamdani to his surprising victory on election day. Among them are free buses, universal childcare, and a massive expansion in low-cost housing.

However, turning the city cost-effective for residents is an costly public undertaking, and many economists and elected officials to Mamdani’s conservative side argue he confronts too many obstacles to effectively follow through on his signature ideas.

Adding complexity to the situation is the national government, which will almost certainly pull funding for New York in an effort to undermine Mamdani and create funding gaps that make it more difficult to fund fresh initiatives.

Additionally, New York City must get state legislature authorization to modify many revenue streams. One expert pointed to the state legislature blocking the city from raising dog licensing fees in a prior year due to a dispute between the incumbent at the time and a state representative.

“A striking way of stating the issue is the City cannot increase dog licensing fees without state approval, and it was true then, and it’s true now,” he said.

However, he and other experts highlight 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 implementing the proposals a success.

How might Mamdani pay for his ambitious agenda? Here’s a detailed look by funding method and initiative.

Generating Revenue

The Mamdani campaign projects it could raise approximately $10bn by raising the corporate tax rate, taxes on the wealthy, and current government revenues.

Critics say businesses and the wealthy will move away, but that is disputed by credible research. Additionally, the business levy is on earnings made in the state no matter where a business is based, making the argument at least partially moot.

Corporate Tax Increase

The mayor-elect calculates a state tax increase from 7.25% and eleven point five percent on corporate profits would produce around $5bn, a large portion of which would be funneled to New York City. State leaders would have to authorize the proposal. Legislative leaders have previously supported comparable ideas, but the state executive opposes increasing levies.

Yet, the governor backs universal childcare, a highly favored proposal because childcare is commonly seen as too expensive, said an expert. It would be difficult for centrist lawmakers to “oppose passing a historical program”, he continued. “Nobody argues ‘Nothing should be done to make childcare cheaper.’”

What’s been lacking, the expert said, has been a leader like Mamdani who declares: “Yes, it costs money, and we will raise taxes to make it happen.”

Raising Taxes on the Affluent

Mamdani’s plan aims to generating $4bn with a two percent hike on those earning more than one million dollars annually. Though it’s a city tax, the state legislature must approve the rise, and the idea is typically opposed by moderate Democrats.

But there is a political pathway, the expert noted. Increasing taxes on the wealthy is widely accepted and, as with the corporate tax increase, allocating the proceeds to support favored initiatives helps to promote in Albany.

Rent Freeze

In terms of expense, a pause on rent hikes on regulated housing is the easiest to implement – it’s minimally costly. But, a freeze must be authorized by the housing panel, and there may not be enough support on it until Mamdani fills it with his own appointments.

Fare-Free and Efficient Buses

Mamdani projects fare-free transit will require a minimum of $700m, which factors in an evasion rate of forty-eight percent. Observers suggest Mamdani could probably cover the cost by optimizing or cutting additional services in the municipal $116bn city budget.

Publicly Run Grocery Stores

A pilot program for five city-owned grocery stores that would be built in neglected “areas lacking food access” is projected at $60m and could also be paid for by adjusting priorities in the $116bn budget.

Constructing Affordable Housing Properties

Many commentators to the right of Mamdani have written off the plan to spend about one hundred billion dollars developing 200,000 affordable units over a decade, mainly because it would require massive debt. The expert clarified those arguing against this point largely overlook that the initiative is does not involve to take on one hundred billion dollars at once – the debt would be accumulated and paid down in phases over multiple administrations.

He also stressed the proposal does not call for no-cost homes, but cost-effective residences that would generate revenue to reduce debt. Furthermore, the developments could in part be privately financed.

“This is how the plan adds up,” the expert concluded.

Universal Childcare

Implementing childcare access for all would cost between $2.5bn and twelve billion dollars by most estimates, based on whether it is a city or state program and additional variables. Financing is the major uncertainty – will the corporate and wealth taxes pass Albany? An expert commented he expected negotiated adjustments, as often happens with large-scale plans.

“Proposals that Mamdani pledged will likely be scaled back,” the expert remarked. “Furthermore the governor’s stated opposition to revenue hikes may just face reality – she probably cannot achieve the objectives she wants on the expenditure front without compromise on the revenue side.”