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Bold pledges to make the city more affordable for residents propelled progressive candidate Zohran Mamdani to his unlikely victory on election day. Among them are fare-free transit, universal childcare, and a massive expansion in low-cost housing.

However, making the city more affordable for residents is an costly government task, and many economists and elected officials to Mamdani’s conservative side argue he confronts too many obstacles to effectively follow through on his key proposals.

Further complicating the situation is the national government, which will almost certainly pull funding for the city in an attempt to sabotage Mamdani and create budget holes that complicate efforts to pay for fresh initiatives.

Additionally, the city must get state legislature authorization to adjust several revenue streams. One expert cited the state legislature blocking the municipality from raising pet registration costs in a prior year due to a disagreement between the then mayor and a lawmaker.

“A striking way of putting it is New York City cannot increase dog licensing fees without state legislature approval, and that held true previously, and it remains the case today,” he noted.

However, analysts point to favorable conditions: Mamdani’s proposals are widely supported and would solve fundamental issues. Democrats now have significant control in the legislature, and some identify financial and political pathways to making the plans a success.

How might Mamdani pay for his bold agenda? We broke it down by funding method and initiative.

Raising Revenue

His team estimates it could generate approximately ten billion dollars by raising the corporate tax rate, taxes on the affluent, and existing fee and tax collections.

Detractors claim companies and the wealthy will move away, but that is disputed by credible research. Moreover, the corporate tax is on profits made in the region no matter where a company is located, rendering the argument largely irrelevant.

Business Levy Hike

The mayor-elect calculates a rise in state taxes from 7.25% and eleven point five percent on corporate profits would produce around $5bn, a large portion of which would be funneled to the city. State leaders would have to approve the plan. Legislative leaders have in the past supported comparable ideas, but the governor is against raising taxes.

Yet, the state leader supports childcare for all, a highly favored initiative because child services is widely viewed as cost-prohibitive, stated one policy director. It would be challenging for centrist lawmakers to “oppose enacting a historical program”, he continued. “Nobody says ‘Nothing should be done to reduce childcare costs.’”

The missing element, the expert explained, has been a leader like Mamdani who says: “Yeah, it costs money, and we will increase revenue to make it happen.”

Increasing Levies on the Affluent

Mamdani’s plan aims to generating four billion dollars with a 2% hike on those earning above $1m annually. Although it’s a municipal levy, the state government must authorize the increase, and the proposal is typically opposed by moderate Democrats.

However there is a feasible route, he noted. Raising revenue on the rich is broadly popular and, as with the business tax hike, using the funds to support popular programs helps to sell in the state capital.

Rent Freeze

In terms of cost, a pause on rent hikes on regulated housing is the easiest to implement – it’s minimally costly. But, a halt must be authorized by the rent guidelines board, and there may not be sufficient backing on it until Mamdani appoints members with his preferred candidates.

Free and Fast Transit

Mamdani estimates free buses will require a minimum of $700m, which includes an fare-dodging percentage of 48%. Observers say Mamdani could probably cover the cost by optimizing or cutting other programs in the city’s one hundred sixteen billion dollar city budget.

City-Owned Grocery Stores

A pilot program for several 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 shifting focus in the one hundred sixteen billion dollar budget.

Constructing Low-Cost Homes Properties

Many people to the conservative side of Mamdani have written off the plan to spend about $100bn building 200,000 low-income homes over 10 years, largely because it would necessitate substantial debt. The expert clarified those arguing against this aspect largely overlook that the plan is does not involve to borrow one hundred billion dollars at once – the liability would be accrued and paid down in phases over multiple administrations.

He emphasized the proposal is not for free housing, but affordable housing that would produce income to reduce debt. Furthermore, the developments could in part be privately financed.

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

Universal Childcare

Implementing childcare access for all would require between $2.5bn 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 corporate and wealth taxes be approved in the state capital? An expert said he expected negotiated adjustments, as often happens with big proposals.

“Proposals that Mamdani promised will likely get a haircut,” the expert remarked. “And the governor’s stated resistance to tax increases could face reality – she probably can’t get the things she desires on the spending side without some flexibility on the revenue side.”