This initiative is the largest local investment in childcare in the country.
NYC Under 3 aims to to increase childcare affordability for families that make up to about $100,000 through decreasing family contributions. The plan will also dedicate funding for childcare start-up and expansion grants and make a capital commitment of $500 million over five years to construct and renovate childcare facilities–and create a higher quality childcare system through funding, educational training, professional development, and scholarships.
The Comptroller’s Office believes NYC Under 3 can be rolled out over six years, costing about $660 million annually. To help pay for the program, Senators Jessica Ramos and Brad Hoylman and Assemblymember Latrice Walker plan to introduce legislation calling for a childcare payroll tax on private employers in New York City with payrolls totaling $2.5 million or more, which would exempt roughly 95% of all businesses. The proposed payroll tax would be applied quarterly on a graduating scale. In contrast to a tax on the incomes of workers, businesses will be able to fully deduct state and local taxes on their federal tax returns.