Wednesday, January 8, 2025

Money in Your Pockets: Governor Hochul Proposes $110 Million Child Care Construction Fund to Build and Renovate Child Care Facilities

A group of children hug Governor Hochul

Child Care Construction Grants Will Build New Facilities And Repair Existing Sites To Address Child Care Deserts

Governor Proposes Creating “Substitute Pool” Of Trusted, Vetted Professionals Who Can Provide Care

Launching New Coalition for Child Care To Develop a Plan to Achieve The Goal of Universal Child Care

As her third proposal for the 2025 State of the State, Governor Kathy Hochul announced new efforts to make child care more accessible and affordable in New York. The Governor will propose a $110 million Child Care Construction Fund to build new child care facilities and repair existing sites, making this critical service more accessible in child care deserts. The Governor will also propose establishing a “substitute pool” to expand the child care workforce, helping providers find trusted, vetted professionals to quickly step in and keep classrooms open. Finally, the Governor will launch the New York Coalition for Child Care to bring together business leaders, labor unions, service providers and tax experts to identify a sustainable path forward for achieving universal child care.

“As a young mom, I had to leave a job I loved because we couldn't find child care. No parent in New York should be forced to make that choice,” Governor Hochul said. “I pledged to invest a record-breaking $7 billion in child care because I know working families need the help. These new proposals will make a real difference in making child care more affordable and accessible for all New Yorkers.”


Governor Hochul has also supported child care providers to ensure their work is financially viable in the long term. The Governor has increased quality and accessibility by increasing reimbursement rates and creating differential payments to providers who meet certain quality standards and provide care during non-traditional work hours.

The Governor has continued to partner with the business community to incentivize responsible employers to offer child care to their employees, including through the Business Navigator program, the Employer-Supported Child Care pilot program, and the Family Child Care Network. Governor Hochul's landmark Green CHIPS legislation, which is revitalizing New York's high-tech manufacturing sector, requires companies to support child care as a requirement for receiving State support.


Last year, the Governor announced the passage of the nation’s first-ever paid prenatal leave law, which went into effect January 1. The law provides paid time off for individuals to prioritize their health during pregnancy, filling a crucial gap in support for working families. She also proposed a historic expansion of New York's child tax credit, benefiting over 2.75 million children. The plan would provide up to $1,000 per child under four and up to $500 per child ages four to sixteen, significantly increasing the current credit of up to $330. This expansion aims to reduce child poverty, assist middle-class families, and double the average credit given to families from $472 to $943.

Since taking office, the Hochul Administration has delivered more than $5.5 billion in supplemental payments, tax relief and rebates, as well as expanding access to child care assistance and paid leave for families and pregnant workers. This announcement follows a number of initiatives to reduce the financial strain on families while improving their well-being during a critical period, marking a major step forward in the state’s commitment to supporting its residents, and putting money back into their pockets.

Throughout 2024, the New York State Child Care Availability Task Force, which Governor Hochul chaired as Lieutenant Governor, focused on developing an implementation framework for universal child care. The Task Force, chaired by OCFS Commissioner Harris-Madden and DOL Commissioner Reardon, delivered its recommendations to the Governor and Legislature yesterday identifying a need for increased support for families not currently eligible for subsidized care.

 

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