ALBANY, NY — New York child care providers will soon have access to $100 million in state grants to build or expand facilities under a program Gov. Kathy Hochul announced Monday, aimed at creating between 6,000 and 10,000 new child care seats statewide. Grants will range from $500,000 to $5 million, supporting both new construction and the expansion of school-age programs as part of Hochul’s broader effort to address affordability and capacity shortages.
Under the initiative, 60% of funds will be directed to downstate regions—New York City, Long Island, and the Mid-Hudson area—while the remaining 40% will be allocated across the rest of the state. Funding will be split between child care centers (60%) and school-age programs (40%). The plan builds on a similar $50 million program launched in 2024, which the administration says added roughly 5,500 new seats.
New York remains one of the most expensive states for child care, with an average annual cost of $15,394, according to the Economic Policy Institute. A typical family may spend nearly 40% of its income on care for an infant and a 4-year-old, with New York City costs even higher. Providers, many still recovering from the COVID-19 pandemic, cite low compensation and rising operational costs as continuing challenges to maintaining services and retaining staff.
Hochul noted that the new program contributes to more than $8 billion in child care investments since 2021, including increased reimbursement rates to help stabilize the workforce. The governor previously clashed with lawmakers pushing for a $5 billion universal child care system, and she is currently in discussions with New York City mayor-elect Zohran Mamdani about proposals to expand funding through new tax measures.
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