Gov. Kathy Hochul, D-NY, on Tuesday proposed a $110 million Child Care Construction Fund as part of her 2025 State executive agenda.
The funding would be used to build new child care centers and repair or renovate existing child care facilities across New York. Hochul noted that the initiative would help child care services be more accessible, especially in "deserts" or communities where there is a scarcity of child care providers.
"I've heard from everybody. We have a shortage of facilities. And we have an amazing program that if your family earns $108,000 or less, your child care costs can be capped at $15 a week," Hochul said.
"Think about that. Think about the money that's back in your pockets. But it only helps if there's a place to go. That sounds nice on paper, but if you're in a child care desert, that doesn't matter. So let's build more," she continued.
The funding will be made available for both for-profit and non-profit child care centers and programs.
Expanding Child Care Workforce
In addition to building more centers, Hochul also proposed creating a "substitute pool" to help facilities lacking child care staff. This, in turn, would help prevent facilities from shutting down on days when their staff are absent. The initiative would be overseen by New York's Department of Labor.
Read Also: Child Care Now Costs as Much and Even More Than Rent for Many Families in the US, New Data Shows
Furthermore, Hochul noted that she wanted to continue the New York Coalition for Child Care, a statewide partnership that brings together business leaders, labor unions, child care providers, and tax experts to provide insight with the aim of achieving universal child care.
New York lost 6% of its licensed child care programs between 2019 and 2023, further exacerbating the shortage of available spots following the pandemic. Child care employment also fell by 32% post-COVID, per data from The Century Foundation.
Other Child Care Initiatives
Hochul's recent announcement follows Monday's proposal that included a large expansion of the state's child care credit, which increased the payment to up to $1,000 for families with children under four and $500 for families with children between the ages of four and 14. The current payment is $330 per child.
