If you’re a NYC parent, you already know that childcare costs rival—and sometimes exceed—what you pay for housing. But 2026 is bringing some major changes. Governor Hochul just announced the biggest expansion of childcare in New York State history, and it could save your family thousands of dollars. Here’s everything you need to know.
The 2-Care Program (Announced January 8, 2026)
Governor Kathy Hochul announced something that could be a game-changer for NYC families: free childcare for all 2-year-olds in New York City, called 2-Care.
“This is the day that everything changes,” Hochul said standing alongside Mayor Zohran Mamdani at the Flatbush Y in Brooklyn. “There’s one thing that every family in New York can agree on, the cost of childcare is simply too high.”
Here’s what you need to know about 2-Care:
The Timeline
- Fall 2026 (School Year 2026-2027): Program launches serving approximately 2,000 children at a cost of about $75 million
- Year Two (2027-2028): Expanded to serve significantly more children at about $425 million
- Full Implementation: Estimated to cost about $1 billion per year when fully rolled out to all NYC 2-year-olds
According to THE CITY, this is an early win for Mayor Zohran Mamdani, who campaigned on a promise of free universal childcare. One Brooklyn mom named Cara, who works in maternal health, told reporters: “It feels daunting, the idea of can we afford another? But if a massive cost is lifted, maybe we can. I owe my second kid to de Blasio. I might owe my third to Mamdani.”
What This Means for Your Family
If you have a 2-year-old in NYC, you could soon qualify for free, full-day care. Combined with the existing 3-K and Pre-K programs, this creates a pathway for free childcare from age 2 through Pre-K (age 4).
Important caveat: The program is being funded with state money for the first two years, but as the Citizens Budget Commission points out, “A two-year funding plan creates a fiscal cliff, a risk for both the state budget and the program.” The state needs to fund this sustainably to ensure reliable access into the future.
The Real Cost of Childcare in NYC Right Now
Before we get into all your options, let’s talk numbers. Childcare in New York City is brutally expensive—families can pay upwards of $20,000 per year on daycare, an expense that rivals housing costs. This is one of the main factors contributing to NYC’s larger affordability crisis.
The impact is real:
- Parents with kids younger than age 6 are twice as likely to leave NYC than those without kids
- Families consider childcare costs when deciding how many children to have—or whether to have any at all
- According to the NYC Comptroller’s office, typical departing families earn $140,000 but face childcare costs of $18,200-$26,000 per child
Your Childcare Options in NYC (2026 Edition)
1. Free Programs
3-K for All (Age 3)
Already established but being strengthened to achieve universal access. This is free, full-day childcare for all 3-year-olds in NYC, regardless of family income.
Pre-K for All (Age 4)
Free, full-day Pre-K for all 4-year-olds. By the 2028-29 school year, every 4-year-old in New York State will have access to Pre-K.
2-Care (Age 2) — NEW!
Launching Fall 2026 for 2-year-olds. This is the newest addition to NYC’s universal childcare system.
2. Subsidized Childcare (Income-Based)
Child Care Assistance Program (CCAP)
This is huge: Governor Hochul has dramatically increased funding for childcare subsidies. Here are the current numbers:
- FY 2026: $2.2 billion invested statewide, including up to $350 million for tens of thousands of NYC families
- FY 2027 (proposed): $1.2 billion increase, bringing total available for subsidies to over $3 billion (that’s 3.5 times more than the $832 million available before Hochul took office)
- Voucher funding increase: 40% increase in funding for childcare vouchers
Eligibility
Families of four making up to $108,000 are eligible for childcare assistance that costs only $15 per week. Yes, you read that right—$15 per week for families making six figures.
The state has also launched a new online portal to make the application process as easy as possible for eligible families.
3. New York State Child Tax Credit (Expanded 2026)
This is the largest expansion of New York’s child tax credit in its history:
- $1,000 credit for children under age 4
- $500 credit for children ages 4-16
- Benefits approximately 2.75 million children statewide
- Average credit doubles from $472 to $943
Real Example:
A family of four with a toddler and school-age child, earning up to $110,000, would receive a $1,500 annual credit—nearly $1,000 more than under the previous program. Even a family of four with an income of $170,000 (previously ineligible) would receive over $500 per year.
4. County Pilot Programs (Outside NYC)
While 2-Care is NYC-specific, Governor Hochul is launching innovative pilot projects in counties outside NYC to work toward universal access to affordable, year-round, full-day care for families regardless of income.
The Federal Funding Freeze (Important Update)
Here’s something you need to be aware of: The Trump administration has decided to freeze certain federal childcare funds in five states, including New York. Governor Hochul stated that approximately $3 billion in childcare funding is at risk.
This creates uncertainty for families who rely on subsidies and services. The state is working to backfill this funding, but it’s a situation worth monitoring. If you’re currently receiving childcare assistance or planning to apply, stay informed about how this could affect your family.
Additional State Support for Families
BABY Benefit
New York State is advancing a birth allowance program to improve maternal and infant health.
Free Diaper Distribution
$9 million investment to distribute free diapers and other postpartum supplies to low-income New York families.
Child Care Capital Funding
$110 million to build new childcare facilities and repair existing sites, as well as home-based programs. This addresses the “childcare desert” problem where many neighborhoods lack sufficient childcare options.
What Early Childhood Providers Are Saying
The expansion of free childcare is exciting for families, but early childhood education providers have expressed concerns about scaling up too quickly. When the city expanded its Pre-K and 3-K programs under former Mayor Bill de Blasio, it inadvertently destabilized smaller programs that make up a crucial sector of the childcare ecosystem.
The state and city will need to ensure that expansion happens sustainably and with attention to supporting all types of childcare providers—both large institutional programs and smaller community-based programs.
How This Compares to What You’re Probably Paying Now
Let’s put this in perspective with some real numbers:
Current Typical Costs (Without Subsidies)
- Infant care (0-2 years): $18,000-$26,000 per year
- Toddler care (2-3 years): $15,000-$22,000 per year
- Preschool (3-4 years): $12,000-$18,000 per year (though many families now use free 3-K and Pre-K)
With New Programs
- Age 2: FREE (starting Fall 2026)
- Age 3: FREE (3-K for All)
- Age 4: FREE (Pre-K for All)
- Ages 0-2 for families earning up to $108K: $15/week ($780/year)
Potential savings for a family with one child from birth through Pre-K: Conservatively $50,000-$80,000 over those five years, depending on your income and which programs you qualify for.
How to Access These Programs
For 2-Care (Launching Fall 2026)
Details are still being finalized. Check nyc.gov and the Governor’s website for application information as the fall approaches.
For 3-K and Pre-K
Applications typically open in late winter/early spring for the following school year. Visit MySchools.nyc for information and applications.
For Childcare Subsidies (CCAP)
Apply through the new state portal. You’ll need:
- Proof of income
- Proof of NYC residency
- Your child’s birth certificate
- Work or school schedule
For the Child Tax Credit
This is claimed when you file your state taxes. If you’re eligible based on income and have children in the qualifying age ranges, your tax preparer or tax software will help you claim it.
Looking Ahead: The Office of Child Care and Early Education
To oversee this massive expansion, Governor Hochul is launching a new Office of Child Care and Early Education. This office will steer the implementation of high-quality, universal childcare for New York families.
The goal is ambitious: affordable childcare for nearly 100,000 additional children through statewide universal Pre-K, the launch of 2-Care, new community care programs, and expanded access to targeted childcare subsidies.
What You Should Do Now
- If you have a 2-year-old: Stay informed about the 2-Care rollout. Applications will likely open in spring/summer 2026 for fall enrollment.
- If you’re currently paying full price for childcare and earn under $108K: Apply for childcare subsidies immediately. You might qualify for $15/week childcare.
- If you have children under 4 or between 4-16: Make sure you’re claiming the expanded child tax credit on your state taxes.
- If you have a 3-year-old or 4-year-old: Make sure you’re enrolled in 3-K or Pre-K (these are free for all families).
- Keep your contact info updated: Make sure you’re on mailing lists for your local schools and childcare programs so you don’t miss application deadlines.
For the first time in NYC history, we’re moving toward a reality where childcare from age 2 through Pre-K could be free for all families, regardless of income. Combined with expanded subsidies for infant and toddler care, families earning up to six figures now have access to affordable options that didn’t exist even a year ago.
As Governor Hochul said, “As New York’s first mom Governor, fighting for New York’s families has always been at the core of my agenda.” This isn’t just policy talk—these changes could save your family tens of thousands of dollars and make it financially feasible to have the family you want while staying in NYC.
The big question now is sustainability. The state is funding 2-Care for the first two years, but long-term funding will need to be secured. Keep the pressure on elected officials to make these programs permanent.
Childcare costs have been a determining factor in whether families can afford to stay in New York. These new programs might finally change that equation.
Additional Resources
Related WMN Articles: Free Fitness Classes Across NYC, HSA vs FSA in 2026
NYC Mayor’s Office: 2-Care Announcement
Governor’s Office: Universal Child Care Investments
New York Family: Governor Hochul Announces 2-Care
THE CITY: Hochul Pledges Free Child Care at Age 2
Chalkbeat NY: State Funding for NYC 2-Care
