Gov. Kathy Hochul unveiling free child care plan for 2-year-olds in NYC, though funding unclear

Cayla Bamberger and Chris Sommerfeldt, New York Daily News on Jan 8, 2026

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NEW YORK — Gov. Kathy Hochul is set to announce a universal child care program for 2-year-olds along with Mayor Zohran Mamdani on Thursday, a boon to one of the mayor’s signature campaign promises.

The governor was expected to details those plans, which would start rolling out this fall and be fully phased in by the 2029-30 school year, in central Brooklyn later this morning, ahead of her annual State of the State address next week.

The program will launch in New York City’s “high-needs” neighborhoods this coming September, before expanding citywide to any family who needs it, Hochul officials said.

Hochul’s commitment was only to fully fund the first two years of the program. It was not immediately clear what state funding, if any, would be allocated after that.

It was also unclear if the child care plan would face new economic headwinds after the Trump administration this month froze federal funding for multiple social services programs in New York, including at least $1.1 billion for the city’s child care system, according to the Administration for Children’s Services. Federal health officials, without citing evidence, have said they have concerns about fraud in those funding streams.

The governor’s office didn’t immediately specify how much the state expects to spend on the initial phase of the rollout — only that it will be paid for with existing revenue and not require any tax hikes this year. Reps for Hochul, who’s facing a competitive reelection race this year, did not immediately say where that existing funding would come from.

Beyond 2-care, the plan includes state support for the city’s universal 3-K program and an additional $1.2 billion investment in child care subsidies for low-income families, a nearly 40% increase since this year’s enacted budget that forced local families to languish on waitlists.

“Since taking office, I’ve put families front and center, fighting to make our state more affordable and laying the groundwork to deliver universal child care,” Hochul said in a statement. “Today, I’m proud to partner with Mayor Mamdani and leaders across our state to make this a reality.”

As part of his affordability agenda, Mamdani campaigned on a promise of free child care for all kids from 6 weeks to 5 years old, regardless of household income.

His staffers estimated that broader plan would alone cost $6 billion per year in New York City, which is further along toward implementing universal child care than municipalities elsewhere in the state without 3-K and pre-K programs. Implementing the broader program statewide is estimated to cost $15 billion annually.

Shortly after she endorsed Mamdani in November’s election, Hochul indicated she was most aligned with the Democratic Socialist on child care, vowing to work with him toward a universal program. In fact, it was just a year ago this time, at the start of the budget process, that the governor announced a new coalition to “develop funding strategies to put New York on the path to universal child care.”

But their conceptual agreement came with a catch: The unlikely pair remained worlds apart on how to fund it. Mamdani suggested raising state taxes on millionaires and corporations — a proposal Hochul for months voiced opposition to.

More recently, Mamdani suggested he’s open to other ways of supporting the expansion. Hochul, meanwhile, has in recent months started to warm to the possibility of increasing just corporate tax rates, reasoning that expanded child care is good for business.

Raising taxes this year could be politically risky for Hochul, as she’s likely to face off against Republican Bruce Blakeman in November’s gubernatorial election. Before the general election, Hochul needs to win this summer’s Democratic primary in which she faces her lieutenant governor Antonio Delgado, who has sought to portray himself as more aligned with Mamdani’s tax-the-rich agenda.

Any new tax hikes would need to be cleared by both the state Legislature and the governor to become law.

In a statement ahead of his morning appearance with Hochul, Mamdani said the governor’s commitment was “proof that when New Yorkers come together, we can transform the way government serves working families.”

Also as part of Thursday’s announcement, the governor’s office said she plans to launch a state office on child care and early childhood education to spearhead implementation.