“Sign up for Chalkbeat New York’s free daily newsletter to get essential news about NYC’s public schools delivered to your inbox. The waitlist for New York City’s enormously popular childcare voucher program for low-income families has ballooned to 25,000 kids and isn’t likely to shrink, according to officials and experts — even as its budget keeps growing. Officials from the city’s Administration of Children’s Services, which administers the state and federally funded Child Care Assistance Program, haven’t let any new families in since last May, citing financial limitations. And city officials haven’t made any commitments to enrolling families on the waitlist this year. Yet, state funding for the city’s childcare vouchers grew from about $1.45 billion last year to $2 billion in the recently passed state budget . This year, $475 million of that state funding is only available if the city contributes a matching amount. Advocates and experts say the city could be doing more to chip away at the waitlist, pointing out that city officials have left hundreds of millions of dollars in potential state funding for the voucher program on the table. They argue city officials are being overly cautious in their financial planning. The stakes are high for thousands of city families and scores of childcare providers. For many parents of young kids, the voucher program, which gives families a weekly subsidy they can use at any licensed childcare program, is the most direct and flexible way of defraying the often unaffordable costs of childcare. And for providers, particularly home-based childcare operators, the subsidies are a key tool for increasing enrollment and ensuring income to pay their staff and cover their bills. Adding to some advocates’ concern is a curious detail in last week’s state budget. State officials quietly adopted language allowing the city to spend up to $100 million that was previously earmarked for childcare vouchers on any cost “in support of children,” according to budget documents. That could theoretically give the city license to spend that $100 million on any number of programs from after-school programs to K-12 education. “The big takeaway for me is that the city does have resources available to it to be serving more families than it currently is with the waitlist,” said Pete Nabozny, policy director at The Children’s Agenda, a nonprofit childcare advocacy organization, of the new state budget. Lauren Melodia, the director of economic and fiscal policy at the New School’s Center for New York City Affairs, estimated the city would have to spend about $500 million this coming fiscal year to clear half of the voucher waitlist. Nicolette Simmonds, a spokesperson for Gov. Kathy Hochul, said the governor has invested a “record amount” in childcare vouchers. State officials noted enrollment has tripled in New York City since 2022, but did not respond to a question about the rationale for the $100 million budget carveout. The city plans to claim the remaining $245 million in state funds for the city’s voucher program by the deadline in September, said Sneha Choudhary, a spokesperson for Mayor Zohran Mamdani. Here’s what you need to know about the voucher program, its waitlist, and its budget situation. What is the voucher program and why is it so popular? The Child Care Assistance Program has been around for years, but exploded in popularity following the COVID pandemic, when Gov. Kathy Hochul significantly expanded both who was eligible for the program and the value of the voucher. Families now qualify for a low-income childcare voucher if they make under 85% of the state median income, or about $114,000 a year for a family of four. The vouchers can be used at any licensed childcare facility for kids from birth to age 12, and pay out an average of about $300 a week. The model differs from the city’s prekindergarten, 3-K, and 2-K programs , which directly contract with childcare providers. That system gives the city more oversight of programs, and can offer parents a fully free option in some cases. Some families, however, prefer the voucher model’s flexibility, because it allows parents to use any provider with open seats. Some of those providers operate outside the standard daytime hours available in the city’s programs. The program’s model is “what people actually envision of universal child care: I have a kid, I need care for specific hours, and regardless of the kid’s age, I can go to any licensed program and get care,” said Melodia. “There is a real demand for universal child care that is flexible, that meets parent’s demands now.” Since state officials expanded eligibility and funding, enrollment in the low-income vouchers program has shot up to roughly 70,000 from less than 9,000 in 2022. Why is the program facing a budget crunch? To understand the voucher program’s precarious finances, it helps to know that there are actually two separate voucher programs. The low-income program with the growing waitlist is often referred to as “non-mandated” vouchers. But there is a separate, “mandated” voucher program only open to families receiving federal cash assistance. City and state officials are obligated under federal rules to offer a childcare voucher to any family receiving cash assistance that requests one. Enrollment in the city’s mandated voucher program has fluctuated wildly in recent years, making it difficult for the city to make firm financial predictions. During the pandemic, officials relaxed work requirements for federal cash assistance, keeping more families home and reducing their need for child care. Enrollment in the mandated voucher program cratered. Last year, when officials reinstated work requirements, many expected mandated voucher enrollment to surge back to pre-pandemic levels. But that hasn’t yet happened: Enrollment only ticked up by about 3,000 from February 2025 to a year later, according to the most recent data . Nabozny said the “big issue” preventing the city from beginning to enroll families from the low-income voucher waitlist is that they want to have enough funding available in case mandated voucher enrollment does surge, although some question whether that’s the best approach. “It’s a problem, because they could be serving other families who are on a waitlist now,” Nabozny said. How much money does the city have to give out more vouchers? Last budget season, as officials were preparing for a boom in mandated voucher enrollment and one-time federal funding from the pandemic dried up, the state offered a stopgap solution to keep the voucher program solvent. In order to prevent the city from having to kick families out of the program, the state offered an extra $350 million, but with a catch: The state would only pay out as much from that supplemental pot as the city put forward from its own coffers. A year later, the city has only tapped $105 million of the $350 pot, city officials confirmed. City officials say they plan to claim the remaining $245 million by the September deadline. But due to the late change to the state budget, the city has the option of using $100 million of those unclaimed state funds for an entirely different purpose. A Mamdani spokesperson said the administration “intends to claim all available funding for child voucher related expenditures,” but did not specify how the city was planning to use the newly available $100 million. For the coming year, the supplemental pot from the state is even larger. The city can claim up to $475 million for vouchers from the state, provided it matches with its own funds. But city officials are still being cautious about making any commitments on if and when they will begin enrolling from the waitlist. Officials noted that some families on the waitlist may have enrolled in other city-funded childcare programs like 3-K and Pre-K, but couldn’t provide exact numbers. Brooklyn Council Member Lincoln Restler urged officials to adopt a stopgap solution of offering a slew of new temporary, one-year vouchers. “We don’t make an in perpetuity commitment that this child is going to have a voucher until they’re 13,” he said at a budget hearing last week. “But we add child care capacity for the coming fiscal year with the resources we know we have today.” Michael Elsen-Rooney is a reporter for Chalkbeat New York, covering NYC public schools. Contact Michael at melsen-rooney@chalkbeat.org .
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