New York’s Employer-Supported Child Care Pilot

Challenges

Access, Scalability

Location

New York

Stakeholders

Businesses, Nonprofits, State Government

Beneficiaries

Parents, Childcare Providers, Job Seekers

Overview

New York State initiated a pilot program in 2023 that engages employers to support childcare for middle-income families who do not qualify for traditional subsidy programs.

Key Impact Metrics

$4.8M
in state funding committed
100K+
New York families targeted

Problem

New York state has historically invested heavily in childcare subsidy programs for low-income families, but families who earn slightly above the threshold still struggle with childcare costs.

Solution

The Employer-Supported Child Care (ESCC) pilot was introduced in 2023 $4.8M to split childcare costs equally among employers, the state, and employees for families earning 85–100% of state median income. The program operates in three regions—Long Island, Capital Region, and North Country—to enhance affordability and workforce retention. The program is administered through local Child Care Resource & Referral (CCR&R) agencies, which act as “navigators” connecting businesses, families, and providers. New York state also allocated $1 million for a statewide business navigator program to assist businesses that are interested in further supporting the childcare needs of their employees.

Results

Beneficiary Impact
~$14,000 in annual childcare cost savings
Financial Results
~$30 million in annual tax gain

Replication Tips

Narrow the target group if needed: By focusing on a specific income band, New York ensured the program fills a true gap. Other states or localities could do similarly—identify the segment that is underserved.
Use intermediaries to manage logistics: New uses CCR&Rs as the coordinators. This is smart—they already understand local childcare landscapes and can act as bridges between businesses and providers. Other regions could similarly use existing organizations. Other regions could similarly use existing organizations.
Learn from others but adapt locally: New York borrowed from Michigan’s idea but made it their own—narrower income range, significant state funding upfront. If replicating, don’t copy blindly; consider local median incomes, cost of care, political feasibility of employer mandates or incentives, etc., and shape the program accordingly.