STATEN ISLAND, N.Y. -- With millions of New Yorkers struggling to keep up with skyrocketing childcare costs, one Staten Island legislator is looking to put money back in parents’ pockets.
Assemblymember Michael Reilly, who represents the South Shore of Staten Island, has introduced legislation to establish a childcare tax credit in New York to reimburse parents for a significant portion of their annual childcare costs.
“I introduced A5810 to address the immense financial strain placed on New York’s working families, especially in recent years and especially in single-parent households. In just New York City alone, more than 1/3 of children live in a single-parent household,” Reilly said.
The bill, if passed and signed into law, would allow for 25% of New Yorkers’ annual childcare costs to be put against their taxes, reducing the amount of money they may owe the state come tax season.
“By allowing these families to apply 25% of their childcare expenses as a tax credit, we will have helped ease the burden that out-of-pocket costs place, allowing for greater flexibility to balance work, family life and other priorities,” Reilly explained.
The credit would apply to childcare costs incurred on children ages 13 and younger, as well as children with disabilities, regardless of their age.
If the bill were to become law, it would take effect immediately and apply to taxable years commencing on or after Jan. 1, 2026.
A 2023 report from the Citizens’ Committee for Children of New York found that 80% of New York City families with children under 5 years old cannot afford childcare and 80% of families with children ages six through 12 cannot afford out-of-school care.
Estimated annual childcare costs in New York City range from roughly $10,000 to $20,000 per child depending on age and the type of child care being provided, according to data from the Office of Children and Family Services’ 2022 New York State Child Care Market Rate Survey Report.
Researchers found that for home-based care, estimated annual childcare costs were $16,250 for ages zero through two, $14,300 for ages three through five and $10,840 for ages six through 12.
For center-based care, estimated annual childcare costs were $20,176 for ages zero through two, $16,900 for ages three through five and $11,760 for ages six through 12.
With the median income for all New York City families with children at $77,681 in 2022, the average family with one child between the ages of six and 12 could have spent between 11% and 26% of their income on childcare alone.
Similarly, the average family with one infant and another preschool-age child could have spent 36% of their income on home-based childcare or 43% of their income on center-based child care.
New York City’s childcare affordability crisis was found to disproportionately impact single parents, more than 90% of whom could not afford any care regardless of setting and across all age groups, according to the report.
“Now more than ever, our working families need relief, and this bill provides a common-sense solution that’ll put money back in the pockets of those who need it most,” the assemblymember said.
Other efforts to address childcare costs
Reilly isn’t the only New York elected official looking to tackle the rising costs of childcare, with Gov. Kathy Hochul having included various proposals in her proposed Fiscal Year 2026 New York State budget aimed at putting money back in parents’ pockets.
Those proposals include an expanded state child tax credit, universal free school meals, a first-of-its kind BABY benefit, free diapers and supplies for 100,000 babies and expanded access to nutrition programs.
The governor has proposed the largest expansion of the state’s child tax credit in New York history, which would increase the maximum credit per child from $330 to $1,000 for children under the age of four and $500 for children between the ages of four and 16.
Under the proposal, the state estimates that the average credit given out to families will double from $472 to $943.
The expanded credit would be phased in over a two-year period, with the $1,000 credit for children under the age of four available for the 2025 tax year and those with children over four eligible for the $500 credit for the 2026 tax year.
If approved, this would be the second major expansion of the Empire State Child Credit under Hochul, who previously expanded the program to include children under the age of 4 through the state’s Fiscal Year 2024 budget.
The budget also includes a proposal that would provide free breakfast and lunch to all New York students, regardless of their family income, for the first time in the state’s history.
If approved, the proposal will provide two free meals per day to all 2.7 million students across the state, saving families an estimated $165 per child in grocery spending each school month.
Studies have shown that providing free meals can improve attendance, test scores and classroom behavior, as hunger can cause inattentiveness and disruptive behavior in students.
For expecting mothers, the governor has proposed the state’s first ever Birth Allowance for Beginning Year (BABY) benefit, which would provide pregnant New Yorkers who receive public assistance with $1,200 upon the birth of their child.
Additionally, eligible mothers would receive $100 per month throughout the course of their pregnancies, bringing the total benefit to $2,100, assuming a typical nine-month pregnancy.
Another proposal would allow the state to partner with Baby2Baby — a national non-profit that provides essential items to one million children living in poverty annually — to provide maternal health and newborn supply boxes to all expectant mothers enrolled in Medicaid and those reached through community-based organizations and hospitals serving lower-income areas.
The proposed program, which is expected to reach 100,000 New York families, would provide families with supply boxes stocked with resources, educational materials, self-care products and diapers.
The governor has also proposed expanding access to the Special Supplemental Nutrition Program for Women, Infants and Children (WIC), which provides free healthy foods, breastfeeding support, nutrition education and referrals to other services to pregnant women and mothers of young children.
The proposal would expand the number of enrollees from 445,000 to 475,000, providing crucial nutritional assistance to an additional 30,000 New York families.