Program Cost Estimates Vary Widely Based on Services
A new report by State Comptroller Thomas P. DiNapoli analyzes New York City’s child care services for those under the age of five, including the demand for these programs and current measures of success, and found there are opportunities to utilize existing data to increase the cost efficiency of programs and direct expansion efforts based on the greatest need.
“The rising cost of child care, especially for children under five, is a major affordability issue facing New Yorkers, forcing many parents to choose between working and taking care of their children,” DiNapoli said. “Governor Hochul’s recently unveiled child care expansion proposal, supported by Mayor Mamdani, is laudable and aims to provide services to tens of thousands of additional children across the state in the next two years and grow over time. Mayor Mamdani has made universal child care a priority for his administration. My office has found that existing programs in New York City are fragmented and data on outcomes and cost can be better utilized so expansion efforts are done in a cost-efficient manner and are directed to those most in need.”
Funding for the expansion of both 3-K and child care vouchers was initially backed by one-time federal resources, which the city (and to a lesser extent, the state), has slowly absorbed in recent years. The city will need to identify new resources, or redirect existing resources, to pay for further expansion, which comes at a higher cost to care for infants and toddlers.
The cost of expanding child care will vary widely based on services provided, provider types, hours and days of service and the number of seats provided, among other factors. Based on current costs and utilization rates, DiNapoli's report estimated expansion could cost between $2.7 billion to $8.2 billion, excluding additional costs for services for children with disabilities. The wide range reflects the significant variability in cost-driving factors, such as the types of services provided and the number of children who receive care.
DiNapoli recommended officials look at streamlining program administration, improving public engagement and outreach and lowering the per-participant cost of services provided across the age spectrum by improving standardization of services and reducing unfilled seats. The report found inconsistencies in information available to applicants and that the fragmentation of programs made it difficult to compare the cost effectiveness of care across services offered.
Success of such an effort would benefit from improved data collection and reporting on those served and the providers of child care services (including providers through the Department of Education (DOE)), a simpler application process, more regular reviews of public-facing websites and establishment and measurement of intended outcomes.
The report also notes that phased implementation has several operational and financial benefits that should improve the efficiency of any expansion of child care services, including addressing training and staffing needs, physical capacity expansion in child care deserts, more responsive application and administration processes, and a reduced chance of mismatch between demand and supply which could lead to more unfilled seats and higher costs. A summary of the number of children under five and two-year-olds by neighborhood are included in the report.
DiNapoli’s report on the city’s child care services for children under the age of five also found:
- The city’s Administration for Children’s Services (ACS) and DOE provided child care and early childhood education programming to nearly 160,000 under the age of five in Fiscal Year (FY) 2025, equal to about 35% of the city’s 2024 under-five population.
- The cost of providing services to children under five in FY 2025 was about $3.2 billion, or nearly $20,000 per child, excluding cost of special education Pre-K services.
- Monthly ACS vouchers in use by children under five increased from an average of 29,615 in FY 2023 to 52,027 in FY 2025. Through the first four months of FY 2026, this figure increased to 64,129 vouchers in use.
- Total enrollment in the city’s 3-K and Pre-K programs declined in FY 2025, suggesting the programs may be reaching a saturation point or programs are competing with vouchers. Unfilled seats across both programs exceeded 23,000 in FY 2025.
- Participation in child care programs for children under five is not uniform across all ages, as program coverage is available to about 86% of all three- and four-year olds, but only 13% of children under the age of three.
Report
New York City Government Services: Child Care Services for Children Under Five
Related Reports
Lingering Challenges in the Child Care Sector
Review of the Financial Plan of the City of New York
New York City Agency Services Monitoring Tool (Department of Health and Mental Hygiene)
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