09-05-2025
Adams' bid for extra state cash falls short, putting key child care subsidy program at risk
The Adams administration's improbable hope that New York state would allocate more funding for child care vouchers was dashed Friday as Gov. Hochul signed the budget into law — leaving the essential program in limbo.
City Hall had been counting on the state to provide hundreds of millions of dollars to ensure parents did not lose access to care through the initiative, known as the Child Care Assistance Program.
But Hochul announced a budget deal with the Legislature last month that included just $350 million to help avert a looming fiscal shortfall much larger than that, forcing the city to match their investment to receive the dollars.
The funding was notably absent last week from the mayor's budget plan, and the city recently closed the program to new applicants who are not required by law to receive the benefit.
'We typically get a few thousand applications for child care each month, and so, that waitlist could include all of those children for the time being,' Jess Dannhauser, the commissioner of the Administration of Children's services, which dispenses the vouchers in the city, revealed this week to reporters.
Adams last week said he was still 'going to fight' amid hope the extra money could be included in the final budget. But under the terms of the agreement outlined in two state budget bills, New York City would have to spend at least $328 million to qualify for the matching funds.
Any remaining dollars would be available to other cities and towns, which have an additional $50 million earmarked for them.
A spokeswoman for Mayor Adams did not immediately say if the city would pony up the funds. The municipal budget is still being negotiated with the City Council, whose leaders previously expressed dismay over cutbacks to the program. A spokesperson did not immediately return a request for comment.
The governor's office had insisted the status quo was 'unsustainable,' and that in order to provide families with affordable child care, the costs had to be a 'shared responsibility' between the city and state.
'This budget is about you and your parents,' Hochul told dozens of children in Broome County as she signed the budget bills. 'And when I proposed my budget back in January, I said, 'Your family is my fight.' And I wanted to make sure I could fight for your moms and dads to have more money back in their pockets.'
At issue is that funding for subsidized child care has not kept pace with the exponential growth in assistance.
In the years following the pandemic, ACS rapidly expanded vouchers for families who qualified by income — growing from 7,400 to 69,000 children between 2022 and today. The subsidy is available to families making under 85% of the state median income, and cover on average $300 of their weekly child care costs.
But with more families on public assistance going back to work, and reimbursement costs rising, the city is expecting a funding cliff that could kick tens of thousands of families off vouchers at their annual recertification. Prior estimates suggest the program may need up to $900 million over the next fiscal year to make it whole.
