Gov. Kathy Hochul rolled out broad strokes of a multi-billion-dollar plan Thursday to offer “free” child care for all two-year-olds in New York City, while expanding pre-K and early child care programs in the rest of the Empire State — with no tax increases, at least this year.
The Big Apple already has universal Pre-K and 3K programs, and Hochul said she will partner with new Mayor Zohran Mamdani to age down and fully fund the program to cover 2-year-olds.
“This is getting on a roadmap to continue what has already started in the city with four-year-olds and three-year-olds,” Hochul said on MS-NOW Thursday morning previewing the proposal.
“Now we get down to two-year-olds and a program that’s going to be unveiled in a couple of locations,” she said of the city.
Hochul didn’t immediately indicate what the price tag of her loosely defined plans would be, though advocates and fiscal groups suggested universal child care could run upwards of $15 billion annually – a massive new recurring expense for the state.
It’s also unclear how the plan will sit with lawmakers outside the five boroughs, whose constituents’ tax dollars would have to pay into Mamdani’s scheme despite receiving fewer services than the Big Apple.
The governor, who has presided over a $49 billion – 17% – increase in spending since taking office in 2021, said the plan would not require tax increases this year.
Mamdani made universal child care a key priority in his successful bid for the mayoralty. His plan would eventually cover all children over 6 weeks old.
As envisioned by the socialist administration, Hochul said the first year of the program will focus on high-need areas selected by City Hall and expand to serve all interested families across the Big Apple by year 4.
In addition, the governor will help the mayor “fix” the city’s 3K program to achieve its promise of universal access.
Funding for “2-Care” will be included in the state budget, but will be paid for with existing revenue.
The Democrat is running for re-election this fall, and any tax increase would become a campaign issue and a potential political liability for the incumbent, who will face Nassau County Executive Bruce Blakeman, the Republican candidate for governor.
Democratic socialist Mandani, meanwhile, has proposed $9 billion in combined tax increases on millionaires and corporations to fund “free” universal childcare.
However, the idealistic millennial would need Albany’s approval.
It could cost $15 billion to phase in universal child care across all 62 counties in the state, budget experts said.
“There’s one thing that every family in New York can agree on: the cost of childcare is simply too high,” said Hochul, who calls herself the “first mom governor.”
“I’m proud to partner with Mayor Mamdani and leaders across our state to make this a reality, turning that foundation into a concrete roadmap that will transform the lives of working parents and kids across our state.”
Mamdani and Hochul appear to be on the same page — at least for now.
“Over the past 14 months, a movement was born to fight for a city where every New Yorker could afford a life of dignity and every family could afford to raise their kids. Today, Governor Hochul and I meet that movement as we celebrate our joint commitment to universal child care,” Mamdani said.
“This victory represents much more than a triumph of city and state government working in partnership—it is proof that when New Yorkers come together, we can transform the way government serves working families.”
Hochul will also move to expand pre-K and early childhood programs in other parts of the state.
While four-year-olds in the city and some other parts of the state have long had access to Pre-K, dozens of school districts lack it.
Hochul is providing funding to phase in universal Pre-K for all four-year-olds in the State by the 2028-2029 school year.
The governor is committing $500 million to provide additional funding and expand Pre-K seats.
Hochul also proposed:
- Boosting $1.2 billion in spending to expand access to the Child Care Assistance Program, bringing the total subsidies to parents to more than $3 billion. Most low-income families of the 170,000 children served by the program pay no more than $15 per week for child care;
- Supporting localities outside the city to create and expand child care programs, regardless of income;
- Creating a new Office of Child Care and Early Education to oversee the rollout of universal Pre-K, 3-K, and 2-Care, including aiding the growing child care workforce;
- Bolstering childhood worker training and education programs through scholarships and grants, including through classes at CUNY and SUNY; and
- Expanding the child and dependent care tax credit to provide an additional average benefit of $575 for 230,000 tax filers.
While the state may continue to benefit from higher-than-expected tax receipts from Wall Street and insurance industry bonuses this fiscal year, Hochul’s own budget office estimates a budget gaps of $10 billion and $13 billion in fiscal years 2028 and 2029 respectively, drawing into question the sustainability of the proposal without new taxes or other revenue.
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