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Bold pledges to transform the city less expensive for New Yorkers propelled democratic socialist Zohran Mamdani to his surprising victory on Tuesday. Included are fare-free transit, universal childcare, and a large-scale increase in low-cost housing.

However, making the city cost-effective for inhabitants is an expensive government task, and numerous financial experts and elected officials to Mamdani’s right argue he faces too many hurdles to meaningfully deliver on his signature ideas.

Adding complexity to the situation is the federal administration, which will likely withhold financial support for New York in an effort to sabotage Mamdani and open up funding gaps that complicate efforts to pay for fresh initiatives.

Additionally, the city must secure state government approval to adjust several income sources. One expert cited the state assembly blocking the municipality from raising pet registration costs in a prior year due to a dispute between the incumbent at the time and a lawmaker.

“A striking way of putting it is New York City can’t raise dog licensing fees without state approval, and that held true previously, and it remains the case today,” the expert noted.

However, he and other experts point to tailwinds: Mamdani’s proposals are very popular and would address basic problems. The Democratic party now hold large majorities in the state government, and some identify economic and viable routes to making the plans reality.

How could Mamdani finance his ambitious program? We broke it down by funding method and proposal.

Generating Income

The Mamdani campaign estimates it could raise about ten billion dollars by increasing the corporate tax rate, taxes on the wealthy, and current government revenues.

Critics say companies and the high-earners will move away, but that is disputed by reliable studies. Moreover, the corporate tax is on profits made in the region no matter where a company is based, making the argument at least partially moot.

Corporate Tax Increase

Mamdani estimates a state tax increase from seven point two five percent and eleven point five percent on business earnings would produce about $5bn, a large portion of which would be funneled to the city. The legislature and governor would have to authorize the proposal. State lawmakers have in the past supported similar proposals, but the state executive is against increasing levies.

However, the governor backs universal childcare, a highly favored initiative because child services is widely viewed as too expensive, said one policy director. It would be difficult for moderate Democrats to “oppose passing a historical initiative”, he added. “Nobody argues ‘We shouldn’t do anything to make childcare cheaper.’”

What’s been lacking, he explained, has been a leader like Mamdani who says: “Yeah, it requires funding, and we will increase revenue to make it happen.”

Increasing Taxes on the Wealthy

The proposal calls for raising $4bn with a two percent increase on those earning more than $1m each year. Although it’s a city tax, the state government must approve the increase, and the idea is typically resisted by centrist lawmakers.

However there is a political pathway, he said. Increasing revenue on the wealthy is broadly popular and, similar to the corporate tax increase, allocating the funds to fund favored initiatives makes it easier to promote in Albany.

Halt on Rent Increases

In terms of expense, a pause on rent hikes on rent-controlled apartments is the easiest to enforce – it’s nearly free. However, a halt must be approved by the housing panel, and there may not be sufficient backing on it until Mamdani fills it with his preferred candidates.

Free and Fast Transit

Mamdani projects fare-free transit will cost at least seven hundred million dollars, which factors in an evasion rate of 48%. Observers say Mamdani could likely cover the expense by streamlining or reducing other programs in the city’s $116bn city budget.

City-Owned Food Markets

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 additionally be paid for by adjusting focus in the $116bn budget.

Constructing Affordable Housing Properties

Numerous people to the right of Mamdani have dismissed the plan to spend approximately $100bn building 200,000 low-income homes over a decade, mainly because it would necessitate massive borrowing. He said those arguing against this point largely miss that the plan is does not involve to borrow one hundred billion dollars immediately – the debt would be accrued and repaid in phases over multiple administrations.

He emphasized the plan is not for free housing, but cost-effective residences that would generate revenue to reduce debt. Moreover, the developments could in part be privately financed.

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

Universal Childcare

Establishing universal childcare would require from $2.5bn and twelve billion dollars by most estimates, based on whether it is a municipal or state initiative and other factors. Financing is the big question mark – can the corporate and wealth taxes pass Albany? An expert commented he expected some compromise, as often happens with big proposals.

“Proposals that Mamdani pledged will probably get a haircut,” the expert said. “And the state leader’s expressed resistance to revenue hikes could face reality – she probably can’t get the things she desires on the expenditure front without compromise on the revenue side.”