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Ambitious promises to transform the city more affordable for New Yorkers propelled democratic socialist Zohran Mamdani to his unlikely victory on Tuesday. Among them are free buses, universal childcare, and a large-scale increase in low-cost housing.

However, turning the urban center cost-effective for residents is an costly government task, and many economists and politicians to Mamdani’s right argue he faces numerous hurdles to effectively follow through on his key proposals.

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

Additionally, the city must get state legislature authorization to modify several income sources. An analyst pointed to the state legislature blocking the city from increasing dog licensing fees in 2014 due to a disagreement between the incumbent at the time and a state representative.

“The dramatic example of stating the issue is New York City cannot increase dog licensing fees without state legislature approval, and it was true then, and it remains the case today,” he said.

However, he and other experts highlight tailwinds: Mamdani’s proposals are widely supported and would solve basic problems. The Democratic party now hold significant control in the state government, and several identify economic and political pathways to implementing the plans a success.

How might Mamdani finance his bold agenda? Here’s a detailed look by funding method and initiative.

Generating Income

His team projects it could raise about $10bn by raising the business tax, taxes on the wealthy, and current government revenues.

Detractors claim companies and the high-earners will move away, but this is contradicted by credible research. Moreover, the corporate tax is on profits made in the region no matter where a business is based, making the argument at least partially irrelevant.

Business Levy Increase

Mamdani calculates a state tax increase between 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 approve the plan. Legislative leaders have in the past backed similar proposals, but the governor opposes increasing levies.

Yet, the state leader supports childcare for all, a very popular initiative because childcare is widely viewed as too expensive, said an expert. It would be challenging for centrist lawmakers to “oppose passing a historical program”, he added. “No one says ‘Nothing should be done to reduce childcare costs.’”

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

Raising Taxes on the Affluent

The proposal aims to generating $4bn with a two percent increase on those making more than $1m annually. Although it’s a municipal levy, the state legislature must authorize the increase, and the idea is typically resisted by moderate lawmakers.

However there is a political pathway, he said. Increasing taxes on the wealthy is widely accepted and, similar to the corporate tax increase, using the funds to fund favored initiatives makes it easier to sell in the state capital.

Halt on Rent Increases

In terms of expense, a rent freeze on regulated housing is the simplest to implement – it’s minimally costly. But, a freeze must be approved by the rent guidelines board, and there may not be sufficient backing on it before Mamdani fills it with his own appointments.

Free and Fast Transit

The plan estimates fare-free transit will require a minimum of $700m, which includes an evasion rate of 48%. Analysts say Mamdani could likely pay for the expense by streamlining or cutting additional services in the city’s one hundred sixteen billion dollar city budget.

City-Owned Grocery Stores

A trial initiative for five public food markets that would be built in underserved “food deserts” is projected at sixty million dollars and could also be paid for by adjusting focus in the one hundred sixteen billion dollar spending plan.

Constructing Low-Cost Homes Units

Numerous people to the conservative side of Mamdani have written off the plan to invest about one hundred billion dollars developing two hundred thousand affordable units over a decade, largely because it would require massive borrowing. He clarified those opposing this point largely miss that the plan is does not involve to borrow $100bn immediately – the debt would be accumulated and paid down in phases over multiple administrations.

He emphasized the plan does not call for no-cost homes, but cost-effective residences that would produce income to pay down loans. Furthermore, the projects could partially be funded by private investment.

“This is how the proposal is feasible,” he said.

Universal Childcare

Establishing universal childcare would require between two point five billion dollars and twelve billion dollars by many projections, depending on whether it is a city or state program and other factors. Financing is the big question mark – can the business and high-earner levies pass the state capital? An expert said he anticipated some compromise, as is typical with large-scale plans.

“The things that Mamdani pledged will probably be scaled back,” the expert said. “Furthermore the governor’s stated opposition to tax increases could face reality – she likely cannot achieve the things she wants on the spending side without compromise on the tax side.”