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

As her third proposal for the 2025 State of the State, Governor Kathy Hochul today 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."

Child Care Construction Grants
In her Executive Budget, Governor Hochul will propose a $110 million investment in the Child Care Construction Fund. This fund will distribute grant money to child care providers to construct new facilities or repair existing facilities, with the goal of creating new safe sites for kids and providers. Grant funding will be available to non-profit or for-profit child care centers, as well as to school age child care programs, incentivizing the creation of new child care sites. Money will be set aside from this fund specifically for family child care providers to make renovations and repairs to their programs. In addition to renovation and repair funding for family child care providers, Governor Hochul will direct OCFS to provide technical assistance to these small businesses helping them to access this vital funding.

"Substitute Pool" for Trusted Professionals
Too often, child care facilities have to shut down on days when staff are absent due to a lack of staff who are able to step in as substitutes. To improve reliability for kids and families, Governor Hochul is proposing the creation of a "Substitute Pool" of vetted, trusted professionals who can step in when necessary and ensure continuity of care for families. For providers, this will reduce logistical barriers and serve as a workforce pipeline, helping keep child care programs open reliably.

New York Coalition for Child Care
Recognizing the need to put New York on the path to universal child care, Governor Hochul is convening the New York Coalition for Child Care. This will be a partnership between business leaders, labor unions, tax and revenue experts and existing child care providers, which will work to identify a sustainable path forward for achieving universal child care. Their task will be to expand the existing child care assistance system while also building more options to make quality child care more affordable and accessible for middle-class families who are not currently eligible for income-based subsidies.

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."

Department of Labor (DOL) Commissioner Roberta Reardon said, "I thank Governor Hochul for advancing bold proposals that continue to deliver for families statewide. These strategic investments will strengthen New York State's child care system to be safe, affordable and address child care deserts, enabling more parents to be a part of our workforce."

New York State Office of Children and Family Services (OCFS) Commissioner Dr. DaMia Harris-Madden said, "Since the re-launch of the Child Care Availability Task Force, New York has continued to make great strides in reducing out-of-pocket costs for families, increasing access to quality care statewide, and supporting the vital workforce. Governor Hochul's latest proposals coupled with the Task Force's practical framework will get New York State closer to the eventual goal of universal child care. Our collective efforts are making a profound difference in the lives of thousands of families, with enrollment in the publicly funded Child Care Assistance Program (CCAP) increasing by over a third in the last year."

Dormitory Authority of the State of New York (DASNY) President and CEO Robert J. Rodriguez said, "Governor Hochul recognizes that affordable and accessible child care is integral to enabling all New Yorkers to thrive and to succeed in their families and in their work. DASNY is proud to administer grants on behalf of our State partners to make child care available to New Yorkers who depend on affordable child care to enable them to work.

Today's announcement builds on Governor Hochul's historic $7 billion investment to expand and improve child care accessibility and affordability for working families. This includes initiatives to help families by raising the eligibility threshold for child care assistance so families of four making up to $108,000 are eligible for child care that costs only $15 per week. The Governor also launched a new online portal to make the application process as easy as possible for eligible families.

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.

The Business Council of New York State President and CEO Heather Mulligan said, "We appreciate Governor Hochul tackling the issue of childcare head-on and accepting the Childcare Availability Taskforce's recommendations for universal care. This critical issue is complicated, but the governor's plan for non-traditional stakeholder involvement, coupled with capital investments for current providers and scheduling plans for creating a substitute pool, are positive first steps. We are excited and hopeful that we can find a way to support all New Yorkers in need of care, particularly those who struggle most with affordability."

Civil Service Employees Association (CSEA) President Mary E. Sullivan said, "Governor Hochul's proposals will deliver lasting benefits for childcare providers, children, parents, and New York's economy. By strengthening supports and investments for childcare providers, these initiatives will help providers thrive while ensuring that parents have access to quality, licensed, and affordable childcare. These proposals are a vital step forward for working families, childcare providers, and the state, fostering both immediate and long-term growth for New York."

AFSCME DC37 Executive Director Henry Garrido said, "Many working families have the difficult decision between keeping a job they love, supporting their family and ensuring their child has the resources they need to succeed. By bringing unions and businesses together with child care providers, we'll move closer to achieving universal child care for every family in our state. We're grateful for the Governor's partnership in putting our kids first, and look forward to working with her to support the next generation of leaders."

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. Today's 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.

Contact the Governor's Press Office