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Ambitious promises to transform the metropolis less expensive for New Yorkers propelled democratic socialist Zohran Mamdani to his unlikely victory on Tuesday. Among them are free buses, childcare for all, and a large-scale increase in affordable homes.

However, making the city cost-effective for residents is an costly public undertaking, and many economists and politicians to Mamdani’s right say he faces too many obstacles to effectively follow through on his key proposals.

Further complicating matters is the federal administration, 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 new priorities.

Additionally, the city must secure state government authorization to adjust several income sources. An analyst cited the state legislature stopping the municipality from raising dog licensing fees in a prior year due to a disagreement between the then mayor and a state representative.

“A striking example of stating the issue is the City can’t raise dog licensing fees without state legislature approval, and it was true then, and it remains the case today,” he noted.

Nonetheless, analysts point to favorable conditions: Mamdani’s ideas are widely supported and would solve basic problems. The Democratic party now hold large majorities in the state government, and several see financial and political pathways to making the proposals a success.

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

Raising Revenue

The Mamdani campaign estimates it could generate about $10bn by increasing the corporate tax rate, levies on the wealthy, and current government revenues.

Critics claim companies and the high-earners will relocate, but that is contradicted by reliable studies. Moreover, the business levy is on earnings made in the region no matter where a company is based, rendering the point at least partially moot.

Business Levy Increase

The mayor-elect calculates a state tax increase from seven point two five percent and 11.5% on corporate profits would produce about five billion dollars, a large portion of which would be directed to New York City. The legislature and governor would have to approve the plan. Legislative leaders have previously supported comparable ideas, but the state executive is against raising taxes.

However, the state leader supports childcare for all, a highly favored proposal because child services is commonly seen as too expensive, said an expert. It would be challenging for centrist lawmakers to “resist passing a landmark program”, he added. “Nobody says ‘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 requires funding, and we will raise taxes to make it happen.”

Raising Taxes on the Wealthy

Mamdani’s plan aims to generating $4bn with a two percent increase on those making more than one million dollars each year. Though it’s a city tax, the state government must approve the rise, and the proposal is typically resisted by moderate Democrats.

However there is a feasible route, the expert noted. Increasing revenue on the rich is widely accepted and, as with the business tax hike, allocating the proceeds to support popular programs helps to promote in the state capital.

Rent Freeze

In terms of cost, a rent freeze on rent-controlled apartments is the simplest to implement – it’s minimally costly. However, a freeze must be approved by the housing panel, and there may not be enough support on it before Mamdani appoints members with his preferred candidates.

Fare-Free and Efficient Buses

The plan estimates free buses will cost at least seven hundred million dollars, which includes an evasion rate of forty-eight percent. Observers say Mamdani could likely cover the cost by optimizing 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 “food deserts” is estimated at $60m and could also be paid for by adjusting focus in the one hundred sixteen billion dollar budget.

Building Low-Cost Homes Properties

Many commentators to the conservative side of Mamdani have written off the proposal to invest approximately $100bn developing 200,000 low-income homes over 10 years, mainly because it would necessitate substantial debt. The expert clarified those arguing against this aspect mostly overlook that the plan is not to take on one hundred billion dollars at once – the debt would be accrued and repaid in tranches over multiple administrations.

He emphasized the plan does not call for free housing, but cost-effective residences that would produce income to pay down loans. Moreover, the developments could in part be privately financed.

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

Childcare for All

Implementing childcare access for all would require from $2.5bn and $12bn by many projections, depending on whether it is a municipal or state initiative and other factors. Financing is the major uncertainty – will the corporate and wealth taxes pass Albany? One analyst said he anticipated some compromise, as is typical with big proposals.

“Proposals that Mamdani promised will probably be scaled back,” the expert remarked. “And the governor’s stated opposition to tax increases could confront practical limits – she probably cannot achieve the things she desires on the spending side without compromise on the tax side.”