UPDATE: New York City’s mayor-elect, Zohran Mamdani, has just announced a groundbreaking plan to implement universal free childcare for all children under the age of six. This ambitious initiative aims to tackle the soaring costs of childcare in the most expensive city in the U.S., drawing inspiration from New Mexico’s recently launched universal childcare policy.
Effective November 1, New Mexico’s program eliminated income limits and copays, making childcare accessible to all parents statewide. In addition, childcare workers in New Mexico are set to receive a pay raise, a key feature Mamdani may replicate in NYC.
Childcare has surged in cost, outpacing inflation, which has forced many families into financial hardship and left them scrambling for affordable options. Previously, New Mexican families ineligible for full subsidies faced an average annual cost of $12,000 per child. According to Julie Kashen, a senior fellow at The Century Foundation, this financial relief can significantly impact family budgets, enabling parents to save for the future and maintain stable employment.
Mamdani plans to fund this transformative initiative by taxing wealthy residents and large corporations. He estimates that the program could cost around $6 billion, which would expand NYC’s free preschool offerings for 3- and 4-year-olds.
In contrast, New Mexico benefits from substantial revenue generated by its oil and gas industry, totaling over $11 billion last year from fracking. This funding supports a permanent childcare fund valued at approximately $10 billion, projected to grow to $12.6 billion in coming years.
To address the chronic underpayment in the childcare sector, New Mexico has also raised minimum wages for childcare workers to $18 per hour, significantly above the state minimum wage. Experts highlight that this increase is crucial for attracting and retaining dedicated workers. Hailey Gibbs, associate director for early childhood policy at the Center for American Progress, noted that many childcare workers earn less than dishwashers or dog walkers, which undermines the quality of care.
In NYC, median wages for daycare workers stand at $18.09 per hour, well below the metro area’s median of $28.55 per hour. Mamdani’s proposal includes matching salaries of childcare workers to those of NYC public school teachers, with starting salaries around $70,000.
As Mamdani takes office, his administration’s focus on childcare could reshape the economic landscape for families in NYC, providing crucial support for working parents. With reliable childcare, parents can maintain stable employment without the fear of sudden disruptions due to lack of care.
Next Steps: As this story develops, stakeholders will be watching closely how Mamdani’s plans unfold and the impact they will have on families and childcare workers in New York City. The urgency of affordable childcare is greater than ever, and Mamdani’s commitment could change the lives of countless families.
Stay tuned for more updates on this critical issue affecting parents and caregivers across the nation.
