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NYC Halts New Child Care Subsidy Enrollment Over Funding Dispute

A standoff between Mayor Adams and Governor Hochul over cost-sharing leaves low-income families facing waitlists and potential voucher losses.

Overview

  • New York City has stopped enrolling new families for child care vouchers, placing income-qualified applicants on a waitlist starting May 5, 2025.
  • The program's rapid expansion from 7,400 to 69,000 children since 2022 has outpaced available funding, creating a fiscal shortfall.
  • Governor Hochul's state budget includes $350 million for NYC subsidies, but the funds are contingent on the city matching that amount—a condition City Hall has resisted.
  • Without additional funding, the Administration for Children’s Services estimates 4,000 to 7,000 children could lose vouchers each month, with priority access given to families on cash assistance.
  • State-mandated reimbursement rate hikes and restored work requirements for cash assistance recipients have further increased program costs and demand, intensifying the funding crisis.