The typical NYC family will spend up to 36-43% of their income on childcare.

More than 80% of NYC families cannot afford childcare.

President Joe Biden signed the American Rescue Bill into effect in March 2021, providing a record $39 billion in aid to stabilize the childcare industry, but it was only ever intended to ensure the industry’s survival through the pandemic. Now at the other end, the funding is gone despite a clear need for it. On September 30, 2023, the American Rescue Plan Act expired, eliminating federal funding for child care that was instated to stabilize the economy following the COVID-19 pandemic. The result is that 3.2 million children will be bereft of their child care, 70,000 child care centers will close, and 232,000 child care workers will be left unemployed. 

As childcare prices rise and the mayor imposes budget cuts, over 100k NYC families, 65k being working class, are beginning to move out of the city because they can’t afford the costs. Families in NYC need to make more than $300,000 a year in order to meet the federal standard for affordability, which recommends child care to take up 7% of total household income, and afford child care for 1 child. The US Department of Labor says that a typical NYC family is spending a quarter of their income paying for childcare. Young families are leaving the city because they are unable to afford the peace of mind that childcare gives working parents; with the exodus of workers comes the exodus of employers. Many child care employees can’t even afford childcare for their own children, furthering their drive to leave the city.

Governor Kathy Hochul and Mayor Eric Adams have made efforts to use state funding to reduce the cost of childcare for a fraction of low income families, but this doesn’t address the core issue, which is the unlivable wage that workers make. If the city provided tax credits and property tax abatements that would allow more New Yorkers to open daycare centers, fully fund daycare for 3 year olds, and provide training for employees, childcare could become more accessible.

The latest Census data shows that the median income for all families with children in 2022 was $77,681, but a family with an infant or toddler would need to be making at least $232,000 in order to afford child care. The median income for families with young children in certain Brooklyn and Bronx communities is under $50,000, with childcare costing anywhere from 19-63% of that income. There are only 2 community districts in NYC where a majority of families can afford full-day childcare. Even in districts with higher median incomes, only half of families are able to afford childcare. For those with lower median incomes, almost no one is able to afford childcare, putting children at a risk for child poverty and a disadvantage in childhood development. Almost 80% of families are unable to afford out-of-school care for school-age children (6-12). Generally, home-based care is less expensive than center-based care, and prices increase the younger the child is, meaning that for the time when childcare is most necessary (infant and toddler age), it is also the most expensive. But for single parent households, more than 90% cannot afford child care, no matter the setting or age group. Affordable childcare is an essential service, benefitting the development of children and the economic and career stability of parents.

We are asking for funding for NYC childcare to ease the financial burden on service-providers and families alike. For the future of New York, use your voice to call on policy-makers to bring change.