Governor Hochul Announces Historic Investment in Child Care in Fiscal Year 2023 Budget

Governor Kathy Hochul today announced major investments in child care among the highlights of the fiscal year 2023 budget. New York State is investing $7 billion over four years, showing that access to Quality child care is essential for children, families and economic recovery. That more than doubles New York’s support for child care subsidies. Budget raises income eligibility threshold for child care subsidies to 300% of the federal poverty level ($83,250 for a family of four), expanding eligibility to more than half of young people children in New York.

“Childcare services are an essential part of our economic recovery, providing parents with much-needed support as they continue their education or join the workforce,” Governor Hochul mentioned. “As a mother forced out of her job due to the lack of accessible child care, I am proud of the work we have done with Majority Leader Stewart-Cousins ​​and Speaker Heastie to make this happen. historic investment and the opportunities it will provide working parents.. These landmark changes will permanently increase the availability, quality and affordability of child care for all New Yorkers.

The state budget also expands access to high-quality child care by increasing the market rate for child care services to include 80% of providers. This change will expand the child care options available to subsidize families while increasing reimbursements for child care providers.

To further support vendors, the backbone of the industry, the budget is investing $343 million in a second round of vendor stabilization grants. These grants will go directly to providers and their employees, with 75% of the grants going towards workforce support, including salary increases, bonuses, tuition reimbursement and pension plan contributions. staff and health insurance costs. The budget also invests $50 million to establish a child care capital program. This will allow child care providers to apply for flexible capital grants for expenses related to designing, building, rehabilitating, improving, furnishing or equipping child care facilities. new or existing child care facilities.

Highlighting the importance of access to child care, the enacted budget also invests $15.6 million to ensure that every SUNY and CUNY campus has child care available for students, faculty, and the community at wider. To further increase access to child care for students pursuing higher education, the budget eliminated the requirement that, in addition to their schooling, an individual must work 17.5 hours per week. to qualify for child care subsidies.

Additionally, the budget increases support for Agri-Business Child Development Centers (ABCDs) across the state by investing $13.5 million to continue to provide high-quality early education and social services to farm workers and their families and to support the capital infrastructure of these essential programs.

Major new budget investments build on New York’s use of federal funds that make systemic changes that will permanently expand the availability, quality and affordability of child care. Actions already taken include:

  • Providing $901 million in stabilization grants to nearly 15,000 providers to help cover the costs of child care workers, rent or mortgage, utilities, supplies, training and many more purposes.
  • Providing $163 million in child care subsidies to more than 50,000 children from essential worker families;
  • Ensure that families can receive 12 months of child care assistance even if their income exceeds the eligibility threshold during those 12 months;
  • Capping family dues at a maximum of 10% of their annual income (prior to this, counties could set copayments for families at their own discretion, with some counties charging parents up to 30% of their annual income);
  • Reimburse service providers for 24 absences per child per year;
  • Expansion QUALITYStarsNY– a system for evaluating the quality of childcare service providers;
  • Expand and support facilitated enrollment for existing programs; and
  • Addressing statewide child care deserts by providing grants to new providers and existing providers who want to expand their capacity.

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