Today, Assemblymembers Monica P. Wallace (D-Lancaster) and Karen McMahon (D-Amherst) announced that they had passed historic investments in childcare in the New York State 2021-22 fiscal year budget. The budget, which the Legislature passed earlier this month, allocated approximately $2.4 billion in federal funding in order to expand access to childcare. This funding includes:

• $1.26 billion for stabilization grants, which childcare providers can use to cover facility renovations, rent, mental health supports, and staff wages.
• $225 million to expand eligibility for childcare subsidies to families that earn up to 200 percent of the federal poverty level for the next three years. The New York State Legislature has made a commitment to continue this expansion permanently.
• $291 million to provide 12 months of eligibility for services to families.
• $50 million for facilitated enrollment in Erie and Onondaga counties, the Capital Region, and New York City.
• $192 million to limit co-pays to 10% of a family’s income.
• $120 million to cover up to 24 absences per child, as providers were not previously paid for absences.
• $100 million for start-ups in childcare deserts

Assemblymembers Wallace and McMahon advocated for and secured this historic investment in childcare after a year in which the increased burden of childcare during the COVID-19 pandemic fell disproportionately on women. According to the Pew Research Center, working mothers of young children lost work at three times the rate of working fathers of young children between March and September of 2020. Altogether, nearly three million women left the labor force last year.

The new state budget will help thousands of working families across New York enroll their children in quality child care programs, reduce the cost of child care for more working families, expand universal pre-kindergarten, and support child care providers who are struggling or were forced to close due to the economic impacts of the COVID-19 pandemic.

“The pandemic has exposed many of the inequities faced by women in childcare and threatens to reverse years of progress by women in the workplace. That’s why we fought for funding to help working families, allow working mothers to continue their careers, and ensure that children have safe and reliable care providers,” said Assemblymember Wallace. “I’m proud to announce that we delivered with historic investments in childcare and in the working families of New York.”

“I’m proud that my colleagues and I highlighted childcare as a key item in this year’s state budget,” said Assemblymember McMahon. “The funding for childcare is critical for the parents and childcare workers who depend on this industry. As we emerge from the pandemic, these funds will go a long way in helping facilities to provide excellent care, while allowing parents to return to work with their minds at ease.”

In addition to new subsidies for childcare, working families will receive support from the expanded Child Tax Credit and Child & Dependent Care Tax Credit in the American Rescue Plan. Thanks to this vital federal legislation, working families will receive tax credits of $3,600 per child under the age of 6 and $3,000 per child ages 6 to 17. Meanwhile, families earning up to $125,000 are eligible for a fully refundable 50% Child & Dependent Care Tax Credit of up to $4000 for qualifying caregiving expenses for one child under 13 or for an elderly or disabled adult, and $8000 for two or more children, elderly or disabled adults.

“Childcare is a basic infrastructure essential to the economic recovery of our region - especially for working women,” said Sheri Scavone, Executive Director of the WNY Women’s Foundation. “We have a once-in-a-lifetime opportunity through federal funding to transform childcare to better serve working parents, childcare small business owners and their employees, and our children. Having New York State legislative leadership in Assemblywoman Monica Wallace this budget session has been crucial to ensuring these federal funds are spent efficiently, effectively, and with complete transparency.”

“During this pandemic, we have seen hundreds of thousands of women drop out of the workforce and lose needed earning potential for their families,” said Deputy County Executive Maria Whyte. “Resources for childcare are part of the solution to this problem and other workforce challenges our community is facing. These state dollars for childcare are so important – not just for women, not just for children, but for employers and our entire workforce system.”

Assemblymembers Wallace and McMahon and Deputy County Executive Whyte all emphasized that this historic funding represents one of the most consequential commitments to childcare made at the state and federal levels. This funding will significantly help childcare providers and families not only right here in our community, but throughout the state, laying the foundation for much needed economic growth.