Albany, NY | Fiscal Policy Institute Executive Director Nathan Gusdorf released the following statement on behalf of FPI:

Today’s announcement by Governor Kathy Hochul and Mayor Zohran Mamdani marks a historic step toward making life more affordable for New Yorkers. FPI applauds this shared commitment to expanding the public sector in order to lower the cost of living and ensure that all families with children have access to high-quality care and education starting in infancy—though it will be necessary to enact a stable, long-term revenue source to ensure the permanence of these commitments along the lines of FPI’s tax plan for statewide childcare.

The high cost of childcare has made it impossible for many families to remain in New York: FPI research shows that families with young children are 40 percent more likely to leave the state. The solution to this problem—extending the State’s system of free public education to children under the age of five—has been clear for decades, with the State’s own universal pre-kindergarten law dating back to 1997. The obstacle has always been securing adequate funding, and all New Yorkers should feel heartened by today’s commitment from the State to fund this initiative.

How It Works

• No new taxes or other revenue sources; new investments come from “existing state revenues.”
• $470 million for Statewide Universal Pre-Kindergarten
  • New York State currently provides pre-kindergarten for three-quarters of its four-year-olds. This plan would add $470 million to expand pre-kindergarten to the remaining districts that do not yet provide the program.

• $500 million for “2-Care” in New York City over two years
  • A phase in of universal daycare for two-year-olds in New York City: $75 million in the first year and $425 million in the second year.

• $1.2 billion for the Child Care Assistance Program
  • New York State’s existing voucher program subsidizing childcare for low- and moderate-income families is inadequately funded, forcing districts, including New York City, to put eligible families on waitlists. Governor Hochul committed to adding $1.2 billion in funding to shore up the program.

A correction was made on January 8, 2026: An earlier version of this press release listed the cost of 2-Care as ~$1 billion per year. It has been updated to reflect current information.