New York Governor Hochul proposes to Expand Childcare with $110 Million Establishment of Building Fund

New York Governor Hochu announced a series of new measures to expand childcare services on January 7th as the third proposal of the State of the State Address in 2025. She proposed the establishment of a $110 million Child Care Construction Fund, the creation of a “Substitute Pool” for professional childcare workers, the convening of the New York Coalition for Child Care, and the expansion of subsidies for families’ childcare expenses.

Governor Hochu held a press conference at a daycare center in Brooklyn on that day, stating that when she was a young mother, she had to quit her beloved job because she couldn’t find childcare services. No parents should be forced to make such a choice, she emphasized. Therefore, after taking office as governor, she pledged in 2022 to invest a record $7 billion in childcare over four years because she understands that working families need assistance. The new measures she recently introduced aim to make childcare services affordable and accessible to all New Yorkers.

As the third proposal of the State of the State Address in 2025, Governor Hochu’s new measures for childcare services include:

(1) Allocating $110 million to establish the Child Care Construction Fund to subsidize childcare facilities’ new construction or renovation of existing facilities to increase childcare spaces. She instructed the Office of Children and Family Services (OCFS) to assist childcare facilities in applying for subsidies.

(2) Creating a “Substitute Pool” for professional childcare workers to timely supplement the manpower of childcare facilities and prevent closures due to staff shortages.

(3) Convening the New York Coalition for Child Care, consisting of business leaders, unions, tax experts, and existing childcare facilities, to jointly explore sustainable development paths to achieve universal childcare.

(4) Expanding the eligibility for families to apply for childcare subsidies. A family of four with an income not exceeding $108,000 is eligible to apply for subsidies, with a weekly childcare fee of only $15.

Governor Hochu had previously proposed the “Inflation Refund” and expanded the scope of the “Empire State Child Credit” as the first and second proposals of the State of the State Address. On the 7th, she announced the third proposal, and the full State of the State Address will be delivered to the state legislature on January 14th, with details of the executive budget proposal for the new fiscal year to be released later this month. The state legislature is required by law to pass the budget by April 1st. ◇