Governor Hochul Announces Major Investment in Universal Childcare in NYC

The Facts -

New York State Moves Closer to Universal Childcare with Major Investments

In a significant move toward making childcare affordable and accessible, Governor Hochul announced a groundbreaking investment aimed at establishing universal childcare for children under five across New York. Collaborating with Mayor Zohran Mamdani, the initiative will introduce free childcare for two-year-olds in New York City and bolster the existing 3K program to achieve citywide universal access.

Beginning in 2026, the state plans to broaden access to quality childcare programs, implementing varied models that aim to save New York families billions annually. Governor Hochul, since assuming office, has facilitated this expansion through an $8 billion investment into the state's childcare framework, laying vital groundwork for universal statewide coverage.

Governor Hochul emphasized the shared concern among New York families, stating, “There’s one thing that every family in New York can agree on, the cost of childcare is simply too high." She added that as the state's first mom Governor, advocating for family affordability and laying the foundation for universal childcare has been central to her agenda. Mayor Mamdani echoed this sentiment, highlighting the collaboration as a testament to transformative governance when New Yorkers unite.

The State of the State investments will further support nearly 100,000 additional children, with plans that include:

• Achieving universal Pre-K access statewide,
• Launching the new 2-Care program in New York City, fulfilling the promise of universal 3K,
• Building new childcare initiatives in various counties to offer quality affordable care irrespective of family income,
• Increasing childcare subsidies for tens of thousands more families.

An Office of Child Care and Early Education will be established to oversee these initiatives, ensuring high-quality universal childcare for families throughout New York.

Governor Hochul’s efforts to expand affordable childcare have seen significant progress, with the state having already:

• More than doubled the number of children benefiting from childcare vouchers in the past four years, with a nearly 25% uptick in the last year alone,
• Allocated over $8.6 billion for childcare, more than doubling funding for subsidies,
• Expanded eligibility for families by increasing the maximum income to the federal law's limit—85% of the Statewide median income,
• Reduced costs for families receiving subsidies, capping at $15 per week for most,
• Boosted provider reimbursement rates by nearly 50%, enhancing staff retention and care quality,
• Committed over $150 million for capital funding to create thousands of new childcare seats and centers.

Universal Pre-K for Four-Year-Olds

While some areas in New York have offered Pre-K access, numerous districts still lack availability. Governor Hochul aims to support these districts, promising universal Pre-K for all four-year-olds by the 2028-2029 school year. Funding will also increase for existing seats, ensuring high-quality Pre-K across the state, with a financial commitment approaching half a billion dollars.

Free Childcare for Two-Year-Olds in NYC

With universal Pre-K and 3K already in place, plans in New York City will extend to include free childcare for two-year-olds. Governor Hochul has pledged full financial support for the program’s initial two years, with a focus on high-need areas. By the fourth year, the initiative aims to cover all interested families citywide. This partnership will also address and enhance the city's 3K program.

Expanding Low-Cost Childcare Assistance

Under Governor Hochul's leadership, the Child Care Assistance Program (CCAP) investment has more than doubled, expanding support to 2.5 times more children and increasing by almost 25% in the last year. Currently, most families pay no more than $15 weekly for childcare. In 2026, the investment in subsidies will grow by $1.2 billion, raising the total to over $3 billion, representing a significant increase since Governor Hochul took office.

New Childcare Models and Workforce Support

Innovative pilot programs will be introduced in various counties to offer year-round, full-day care regardless of income, in collaboration with local and state entities. Additionally, an Office of Child Care and Early Education will manage the implementation of these programs, while workforce preparation will be supported through expanded educational opportunities and scholarships for early childhood educators.

Enhancements to Child and Dependent Care Credit

Efforts to expand the child and dependent care tax credit will result in an average benefit increase of $575 for 230,000 tax filers. A review of employer tax incentives will also aim to better cater to employee childcare needs.

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