The Governor of New York has proposed a grant program to support childcare facilities throughout the State. If and when the budget passes, this initiative will be an incredible opportunity for small business in the childcare profession. Here’s what you should know!
The Challenge of Childcare Deserts
Childcare access and affordability are persistent issues for working parents everywhere. More than 60% of New York State is a childcare desert. A childcare desert occurs within any census tract with more than 50 children, under age 5, that contains either no childcare providers or so few options that are more than three times as many children as licensed care slots. This means that in 60% of New York, the child-to-childcare resource ratio is extremely disproportionate.
Governor Hochul has proposed this initiative to address this problem and to inch closer to universal childcare.
What’s the Childcare Construction Fund?
On January 7, 2025, Governor Hochul proposed a $110 million childcare construction fund as part of her 2025 budget. The proposal allocates grant money to eligible childcare businesses as part of an initiative to make childcare more accessible and affordable in New York State. The fund’s goal is to expand the quality and accessibility of childcare and reduce childcare deserts.
Eligibility Requirements
Under the Governor’s proposal, myriad childcare centers – both small and large – will become eligible for grant funds. Among them are:
- Non-profit childcare centers
- For-profit childcare centers
- School-age childcare programs (to incentivize the creation of new childcare sites)
- Family childcare providers
Assuming the budget passes with this initiative intact, childcare providers will be able to apply via the Office of Child and Family Services.
The Governor contends that she’ll direct OCFS to provide technical assistance to those looking to access the fund. Her press coverage suggests this is a high priority and she intends to make the process straightforward. While it remains to be seen whether working with OCFS will be straightforward and simple, the opportunity to obtain part of the $100MM is certainly exciting.
What the Childcare Construction Fund Means for Small Business Owners
Once the budget is passed and this initiative is implemented, the childcare construction fund presents a wonderful opportunity for owners of childcare facilities in New York. Successful applicants can use funding to renovate, repair, and/or improve their childcare facilities. Governor Hochul also intends that funds will be set aside for family childcare providers. This means that providers who operate a childcare business from their home will be eligible for grants as well.
Benefits
Securing funding for renovations and repairs not only helps to improve a childcare facility, but it also frees up operating funds that can be used to address other important needs. This extra money can be directed to amplifying marketing, hiring new staff, improving transportation services, and more.
Geographic Areas of Focus
Childcare business owners residing in childcare deserts should make sure to keep their eyes on the State budget landscape this year, as the childcare fund will be an opportunity to renovate or expand their businesses. Some of the largest childcare deserts are in:
- Livingston County
- The Capital Region
- Mid-Hudson Region, and
- The Western New York Region
Governor Hochul’s $110 million childcare construction fund is a wonderful opportunity for childcare providers in New York State and, in particular, for small business owners. The initiative is designed to improve the accessibility and quality of childcare. With emphasis on childcare deserts, the fund intends to be available to anyone who owns or runs a for-profit, non-profit, or family-run childcare facility.
To be ready to seize this opportunity, be sure to stay informed about updates on the State budget and be prepared to apply as soon as the construction fund is available.
For more details on how to apply, visit the Office of Children and Family Services website. You may also wish to participate in OCFS’s Community Conversations. The next one is scheduled for February 25th at 8:00am via WebEx.
