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Ambitious pledges to transform the city more affordable for New Yorkers propelled progressive candidate Zohran Mamdani to his surprising victory on Tuesday. Among them are fare-free transit, childcare for all, and a large-scale increase in affordable homes.

However, turning the urban center more affordable for inhabitants is an costly public undertaking, and numerous economists and politicians to Mamdani’s right argue he confronts too many hurdles to meaningfully deliver on his signature ideas.

Adding complexity to the situation is the federal administration, which will almost certainly pull funding for the city in an attempt to undermine Mamdani and create budget holes that complicate efforts to pay for fresh initiatives.

Additionally, the city must secure state government approval to modify several revenue streams. An analyst cited the state assembly blocking the city from increasing dog licensing fees in 2014 due to a dispute between the then mayor and a state representative.

“The dramatic way of stating the issue is the City cannot increase dog licensing fees without state legislature approval, and that held true previously, and it’s true now,” the expert noted.

However, analysts point to favorable conditions: Mamdani’s ideas are very popular and would address basic problems. The Democratic party now hold significant control in the legislature, and several see economic and viable routes to making the plans a success.

In what ways might Mamdani pay for his ambitious agenda? Here’s a detailed look by revenue source and proposal.

Generating Revenue

The Mamdani campaign estimates it could generate approximately ten billion dollars by increasing the corporate tax rate, levies on the wealthy, and current government revenues.

Critics claim companies and the high-earners will move away, but that is contradicted by credible research. Additionally, the corporate tax is on profits made in the region no matter where a business is located, making the point largely irrelevant.

Business Levy Hike

Mamdani estimates a state tax increase from 7.25% and eleven point five percent on corporate profits would produce around five billion dollars, much of which would be funneled to the city. State leaders would have to authorize the plan. Legislative leaders have in the past backed similar proposals, but the state executive opposes increasing levies.

Yet, the state leader supports universal childcare, a highly favored proposal because child services is widely viewed as too expensive, stated one policy director. It would be challenging for centrist lawmakers to “oppose passing a historical program”, he added. “Nobody says ‘Nothing should be done to make childcare cheaper.’”

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

Raising Taxes on the Affluent

The proposal calls for raising four billion dollars with a two percent hike on those earning more than $1m annually. Though it’s a municipal levy, the state legislature must authorize the increase, and the idea is typically resisted by centrist Democrats.

However there is a political pathway, he said. Raising taxes on the wealthy is widely accepted and, similar to the business tax hike, using the proceeds to fund favored initiatives helps to sell in Albany.

Halt on Rent Increases

In terms of expense, a rent freeze on regulated housing is the easiest to enforce – it’s minimally costly. But, a freeze must be authorized by the rent guidelines board, and there may not be enough support on it before Mamdani appoints members with his own appointments.

Fare-Free and Efficient Buses

The plan estimates fare-free transit will require at least seven hundred million dollars, which factors in an evasion rate of forty-eight percent. Observers say Mamdani could probably pay for the cost by optimizing or cutting other programs in the municipal $116bn annual spending plan.

City-Owned Grocery Stores

A trial initiative for several city-owned grocery stores that would be established in neglected “food deserts” is projected at $60m and could also be funded by adjusting focus in the one hundred sixteen billion dollar spending plan.

Building Low-Cost Homes Properties

Many commentators to the conservative side of Mamdani have written off the plan to invest approximately $100bn building two hundred thousand affordable units over 10 years, largely because it would require substantial borrowing. The expert said those opposing this point largely miss that the initiative is not to take on $100bn immediately – the debt would be accrued and paid down in tranches over several government terms.

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

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

Universal Childcare

Establishing universal childcare would require from $2.5bn and twelve billion dollars by most estimates, depending on whether it is a municipal or state initiative and other factors. Funding is the big question mark – will the corporate and wealth taxes be approved in the state capital? An expert said he expected negotiated adjustments, as often happens with large-scale plans.

“The things that Mamdani pledged will likely be scaled back,” the expert remarked. “Furthermore the governor’s stated resistance to revenue hikes may just face reality – she probably cannot achieve the things she desires on the expenditure front without some flexibility on the tax side.”