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Governor Hochul Announces $100 Million Commitment to Address Critical Shortage of Child Care Supply for New York State's Families

Includes $50 Million in Capital Grants for Construction of Child Care Centers and $50 Million in Business Tax Credits for Workplace-based Child Care Expansion

Governor Continues Historic $7 Billion, Four-Year Investment in Child Care Enhancements

Governor Kathy Hochul today announced two new initiatives totaling a combined $100 million in funding designed to increase child care supply for New York State’s families. The announcement includes $50 million in capital funding to provide grants for the construction of new child care centers and registered school-age child care programs or the expansion of existing centers. An additional $50 million in business tax credits will be available for eligible businesses that create or expand infant and toddler child care seats for their employees directly or through a third-party. The capital funding and the employer tax credit complement the historic more than $7 billion state investment by Governor Hochul designed to expand access to affordable child care, invest in New York State’s child care workforce, and support working families over a four-year period. Governor Hochul made the announcement today during a visit to a child care center in Albany.

“Quality child care is critical to our families, providing a safe environment for children and an educational foundation for the next generation of New Yorkers,” Governor Hochul said. “Far too often, working families struggle to find programs in their communities. Since taking office, I have remained committed to responding to the concerns of our families by continuing to develop new programs that meet the increasing needs for child care services across our state.”

The Child Care Capital Program (CCCP) will award grants ranging from $500,000 to $1.5 million to eligible child care providers to expand existing child care centers or build new ones. The program will be overseen by the New York State Office of Children and Family Services (OCFS) and administered by the Dormitory Authority of the State of New York (DASNY). Funding will be split 60 percent for the downstate region (which includes New York City; Long Island; and Dutchess, Orange, Putnam, Rockland, Sullivan, Ulster and Westchester counties) and 40 percent for the rest of the state.

The CCCP will provide reimbursement grants for the design, construction, reconstruction, rehabilitation, equipment and other capital assets for existing or proposed state-licensed, not-for-profit or for-profit child day care centers and registered school-age child care programs. The facility must be intended to be used as a child care program for at least eight years. Projects must be shovel-ready, demonstrate the ability to be licensed and fully operational within six months of completing construction and worth at least $500,000.

In order to apply for CCCP grant, applicants must first prequalify through New York State Grants Gateway. Final applications will be accepted through March 31, 2024. Awards will be announced on or after July 15, 2024.

New York State is also making $25 million available for the Child Care Creation and Expansion Tax Credit each year for two years  – $50 million in total –  to be administered through the New York State Office of Children and Family Services (OCFS) and the New York State Department of Taxation and Finance (DTF).

Under the new tax credit program, businesses with a location in New York State that provide new licensed or registered child day care seats for the infants or toddlers of their employees, either directly or through a third-party, can apply for the credit. To be eligible, they must also limit costs to their employees for child care expenses.


The application to receive tax credits for child care seats created in 2023 opens January 1, 2024, and closes January 31, 2024.


OCFS Acting Commissioner and Child Care Availability Task Force Co-Chair Suzanne Miles-Gustave said, “OCFS is proud to administer Governor Hochul’s continued historic investments to make child care more affordable, accessible and equitable. We have heard our hardworking families loud and clear, and are answering their call to increase high-quality options for child care and the much-needed resources to obtain it. OCFS continues to work alongside the Governor and the legislature to explore additional creative strategies to meet the growing demand for these services knowing they are essential to the well-being of our children and families, and the growth of New York’s economy.”

New York State Department of Taxation and Finance Acting Commissioner Amanda Hiller said, “The Child Care Creation and Expansion Tax Credit will help businesses provide the quality child care that many employees need. This is important to keep our economy growing in a tight labor market.”

New York State Department of Labor Commissioner and Child Care Availability Task Force Co-Chair Roberta Reardon said, “I applaud Governor Hochul’s steadfast commitment to ensure access to safe and affordable child care to all New Yorkers. The Governor continues to deliver for families by expanding program eligibility, implementing additional tools and services for caretakers and providing vital child care funding that is essential to New York State’s economic growth.”

For more information on the Child Care Capital Program, applicants with questions regarding New York State Grants Gateway and prequalification or registration may email [email protected] or call (518) 474-5595. OCFS and DASNY will host an informational webinar about the CCCP on January 24, 2024, and potential applicants are strongly encouraged to attend.  More information will also be available on the Child Care Services page of the OCFS website.

For more information on the Child Care Creation and Expansion Tax Credit, visit the website of the New York State Office of Children and Family Services (OCFS) or the New York State Department of Taxation and Finance (DTF).

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