UPDATE: New York City’s mayor-elect, Zohran Mamdani, has just announced a groundbreaking plan to implement free childcare for all children under the age of 6 in the nation’s most expensive city. This ambitious initiative is drawing inspiration from New Mexico’s successful universal childcare policy, which took effect on November 1, 2023.
Mamdani’s plan, projected to cost around $6 billion, aims to eliminate financial barriers and expand access to childcare for families struggling with soaring costs. New Mexico’s model has already demonstrated significant benefits by removing income limits and copays, allowing parents to redirect funds back into their households. The New Mexico government’s goal is to bolster the economy, as parents save on childcare costs, which previously averaged $12,000 per year for those ineligible for subsidies.
In a statement reflecting the human impact of these policies, Julie Kashen, senior fellow at The Century Foundation, emphasized, “That’s huge to a family’s budget. It makes a really big difference in what else they can afford, what they can save for the future, how they can get out of debt.” Reliable childcare, she noted, is essential for working parents, highlighting that “childcare is the backbone of our economy.”
As Mamdani looks to implement his plan, he faces the challenge of securing funding. His proposed solution? Raising taxes on wealthy New Yorkers and corporations. In contrast, New Mexico has leveraged its status as the second-largest crude oil producer in the U.S. to generate substantial tax revenue—over $11 billion last year—from the oil and gas industry. This funding has allowed the state to invest in a robust $30 billion permanent fund for childcare, which is projected to grow significantly in the coming years.
In addition to expanding access, New Mexico’s policy includes a much-needed pay raise for childcare workers, increasing their minimum wage to $18 per hour. This move aims to attract more talent to an industry historically underpaid, where workers currently earn less than many other professions. Hailey Gibbs from the Center for American Progress remarked, “They get paid less than dishwashers and dog walkers,” underscoring the need for competitive compensation to retain dedicated professionals.
Mamdani’s vision also includes proposals to equalize childcare worker salaries with those of NYC public school teachers, potentially reaching around $70,000 for new employees. This effort aims to address the stark wage disparities within the childcare sector in the New York City metropolitan area, where median wages for daycare workers stand at $18.09 per hour—significantly lower than the area’s median wage of $28.55.
As New York prepares for this transformative change in childcare policy, residents are urged to stay informed about potential developments and how they may impact family budgets and the local economy. The urgency of implementing such programs cannot be overstated, as they promise to reshape the future of childcare access and affordability for countless families.
This is a developing story. For parents and caregivers in New York City, the implications of Mamdani’s proposals could be profound, offering hope for a more equitable and accessible childcare system. Share your thoughts on this critical issue and stay tuned for updates as this story unfolds.
