New York State: Strategic Grants for Childcare

Challenges

Access, Scalability

Location

New York

Stakeholders

State Government

Beneficiaries

Parents, Children, Childcare Providers

Overview

New York State launched a $100 million initiative, the Invest in New York Child Care Deserts Grant program, to build and expand childcare capacity in areas with the least supply. The program uses federal relief funds to provide grants to new and existing providers to create new slots in underserved communities.

Key Impact Metrics

$100M
in grant funding available
344
new providers awarded grants in the first round
418
existing providers awarded expansion grants in the second round

Problem

Across New York, many communities lack sufficient licensed childcare slots to meet local demand, a problem exacerbated by the COVID-19 pandemic. These "childcare deserts"—defined by the state as census tracts where there are three or more children under five for every available childcare slot—create significant barriers for working families and hinder local economic recovery and growth.

Solution

Utilizing funding from the American Rescue Plan Act (ARPA), the New York State Office of Children and Family Services (OCFS) established a two-pronged grant program. The first round targeted new providers seeking to open programs in designated desert areas, while the second round focused on helping existing licensed providers expand their capacity. The grants provide capital for start-up costs, renovations, and operational expenses necessary to open new slots for infants, toddlers, and children with special needs or in non-traditional hour care.

Results

Beneficiary ImpactIn the first round, 344 new providers were awarded grants, impacting up to 676,100 children through broader ARPA stabilization efforts. The second round funded 418 existing providers to expand capacity
Employee ImpactThe initiative supports the creation and stabilization of small businesses, primarily owned and operated by women, and creates new jobs for early childhood educators across the state
Financial ResultsThe state allocated $100 million in ARPA funds for the initiative, with $70 million for new providers and $30 million for existing providers

Replication Tips

Use data to target investments: New York's use of a clear, data-driven definition of a "childcare desert" (a ratio of 3+ children per slot) allowed for the precise targeting of funds to areas with the highest need, ensuring maximum impact.
Create separate funding streams for new and existing providers: By offering distinct grant opportunities, the state was able to simultaneously encourage new entrepreneurs to enter the market and support established providers in scaling their operations, addressing both immediate and long-term supply goals.
Partner with local resource agencies: The state collaborated with local Child Care Resource and Referral agencies to help potential applicants understand regional needs and navigate the application process, leveraging existing community infrastructure for effective implementation.