New Initiative Includes Facility Grants, Workforce Support, and Strategic Coalition.

ALBANY | As part of her 2025 State of the State proposals, Gov. Kathy Hochul has unveiled a $110 million Child Care Construction Fund aimed at expanding access to affordable child care across New York. The fund will be used to build new child care facilities and repair existing ones, with a particular focus on addressing gaps in underserved areas known as child care deserts.

The Governor also announced plans to create a "substitute pool" to provide trusted, vetted professionals to child care providers. This initiative is designed to reduce disruptions when regular staff are unavailable, keeping classrooms open and reliable for families. Additionally, a New York Coalition for Child Care will be launched to bring together business leaders, labor unions, service providers, and tax experts. This group will work on long-term solutions to achieve universal child care in the state.

“As a young mom, I had to leave a job I loved because we couldn't find child care. No parent in New York should be forced to make that choice,” said Gov. Hochul. “I pledged to invest a record-breaking $7 billion in child care because I know working families need the help. These new proposals will make a real difference in making child care more affordable and accessible for all New Yorkers.”

Child Care Construction Fund

Under her Executive Budget, Gov. Hochul’s $110 million Child Care Construction Fund will provide grants to child care providers for building new facilities or renovating existing ones. This funding will be available to both non-profit and for-profit child care centers, as well as school-age child care programs. Family child care providers will also receive dedicated support for renovations and repairs, along with technical assistance to help them access the funding.

“Substitute Pool” to Boost Workforce

To address staff shortages that frequently disrupt child care services, the Governor’s plan includes establishing a “substitute pool.” This initiative will allow child care facilities to access vetted professionals who can step in when needed, ensuring uninterrupted care for families while also creating a workforce pipeline for the sector.

Coalition for Universal Child Care

The Governor’s proposed New York Coalition for Child Care will bring together stakeholders to explore pathways to universal child care. This effort will focus on expanding child care assistance programs and creating affordable options for middle-class families who do not qualify for income-based subsidies.

Tuesday’s announcement builds on Gov. Hochul’s previous $7 billion investment in child care accessibility and affordability, which includes raising the eligibility threshold for child care assistance and launching an online application portal for families.

Other initiatives under the Hochul Administration have included increasing reimbursement rates for providers, supporting non-traditional work hour care, and partnering with businesses to incentivize employer-supported child care programs. The Governor’s Green CHIPS legislation also mandates child care support as a condition for state-backed high-tech manufacturing projects.

Gov. Hochul’s leadership in family-focused policies extends beyond child care. Last year, she signed the nation’s first paid prenatal leave law, which took effect January 1, and proposed expanding New York's child tax credit to benefit millions of children. These initiatives, combined with supplemental payments and tax relief for families, underscore her administration’s commitment to reducing financial strain on New Yorkers.

The announcement also reflects recommendations from the New York State Child Care Availability Task Force, chaired by Gov. Hochul during her time as Lieutenant Governor. These recommendations emphasize the importance of expanding support for families not currently eligible for subsidized care, marking another step toward universal child care in New York.