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Federal funding cutoff threatens over 5,000 NY child care centers

  • / Updated:
  • Staff Report 

The termination of the federally-funded Child Care Stabilization Program may result in the closure of over 5,000 child care centers across New York state, threatening child care access for more than 250,000 children.

A report by The Century Foundation highlights that New York parents bear the nation’s heaviest financial burden in terms of child care costs. The potential closure of these centers could drastically impact the state’s workforce, with projections suggesting over 10,000 parents might be forced out of employment.


Additionally, about 74,000 individuals could need to reduce working hours, leading to an aggregate loss of approximately $846 million in household revenue.

The $24 billion Child Care Stabilization Program, enacted via the 2021 American Rescue Plan, concluded on Sept. 30.

Previously, the program had allocated $900 million to assist 15,000 eligible child care programs in New York. With the cessation of these funds, centers may struggle with expenses like rent, mortgage, and personnel salaries, leading to potential closures.

Senator Gillibrand has also advocated for legislative measures in September to alleviate the adverse consequences of this funding gap, ensuring that child care facilities across the country can sustain their operations.