Mayor Zohran Mamdani's signature universal childcare initiative may cost taxpayers billions more than initially advertised, according to a new report.
The plan, which aims to provide free childcare for children aged six weeks to five years regardless of family income, is now estimated to require an annual investment of $8.7 billion to $9.3 billion. This figure is approximately $3 billion higher than the $6 billion per year the Mayor estimated during his campaign.
The report from the Center for New York City Affairs, a nonpartisan research organization, attributes the increased cost largely to the need for substantial investment in childcare worker salaries and the creation of new facilities. Researchers project that the program will require the hiring of around 23,000 new childcare workers, particularly for infants and children under three years old. Additionally, approximately 10,000 new childcare seats for children younger than pre-K are needed.
"This is emblematic of the regular under-estimation of service delivery costs," the report stated. "Therefore, the City will need to identify at least an additional $4.9 to $5.5 billion to sustain a fully universal system."
The city's current spending on childcare services provides a point of comparison. In fiscal year 2025, the city budgeted $2.5 billion for childcare and ended up spending $3.8 billion.
Funding the full rollout of the universal childcare program would necessitate significant support from both the state and federal governments, the report indicates. City Hall has stated its intention to fund the program through taxes on the wealthiest earners and by seeking additional funds from the state.
Governor Kathy Hochul has pledged $1.2 billion to help launch the program in specific neighborhoods and has indicated her commitment to continued financial support. However, in January, she specified that this funding would come from existing state revenues, not new taxes. Hochul previously stated that taxing the wealthy, as suggested by Mamdani, was not an option.
Mamdani's administration has acknowledged the need for additional public investment. A spokesperson for the Mayor stated, "Delivering on those promises will require additional public investment, and this administration has been clear about that from the start." The spokesperson also expressed gratitude for Governor Hochul's partnership and initial investment.
City Hall has not yet released its own official cost model for the universal childcare program and declined to comment on the $9 billion figure from the Center for New York City Affairs report.