New York Eyes Universal Child Care: Billion-Dollar Plan Without Tax Hikes

New York Eyes Universal Child Care: Billion-Dollar Plan Without Tax Hikes

Governor Kathy Hochul and Mayor-elect Zohran Mamdani are advocating for reforms to address the high costs of child care in New York, aiming to enhance government programs that assist families seeking help. “We are on a path to universal child care,” Hochul affirmed, showcasing a commitment to expand access for families with children.

Implementing these ambitious plans could be financially challenging, with estimates indicating costs could reach billions statewide. Hochul faces the dual pressure of finding a solution without raising taxes, all while seeking to provide a significant accomplishment for Mamdani during an election year.

Currently, New York City offers complimentary child care seats for four-year-olds and a majority of three-year-olds. Mamdani proposes extending these benefits to cover infants starting from six weeks up until they are five years old, a plan projected to cost approximately $6 billion annually.

“The challenge lies in resource allocation. How can we shift funds from lower-impact areas to benefit child care, and what joint strategies can be developed?” questioned Andrew Rein, president of the Citizens Budget Committee.

While families bear financial burdens of tens of thousands of dollars per child each year, Hochul has already made strides by expanding tax credits, investing in vouchers for 170,000 children up to age 13, and providing direct checks for workers. With Mamdani’s support, she is currently drafting a more comprehensive plan for the state.

Hochul is also proposing the establishment of universal care for two-year-olds, with a phased rollout that initially focuses on families with lower incomes. The overarching goal is to offer free child care until age five across the state.

Reshma Saujani, CEO of the advocacy group Moms First, highlighted the dire situation many families face, noting that “most families are just one event away from financial ruin.” Child care expenses can reach $40,000 per child annually, surpassing even the costs of housing or college tuition for many.

Saujani encourages national lawmakers, including Hochul, to maximize federal and state tax credits to support companies in offering child care subsidies, backup care, and the development of on-site child care facilities.

As estimates suggest that a universal child care initiative could cost around $15 billion throughout all 62 counties, Robert Mujica, former New York budget director, believes it is feasible to achieve without imposing new taxes. “Phased implementation based on geography, eligibility, and age is possible,” Mujica explained, reinforcing that the state has successfully expanded similar programs in the past.

The shared goal is to create a more supportive environment for families, easing the financial strain of child care and enabling parents to devote resources to their savings and overall well-being. With these discussions taking place, there is hope that solutions are on the horizon to make child care accessible and affordable for all New Yorkers.

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