San Diego’s Municipal Child Care Benefit Pilot

Challenges

Access, Worker Issues

Location

California

Stakeholders

Businesses, Local Government

Beneficiaries

Children, Parents

Overview

The City of San Diego launched a federally-funded Municipal Child Care Benefit Pilot for city employees, providing tiered reimbursements ranging $200–$1,200 per child per month.

Key Impact Metrics

230
applications received in year 1
$1,200
subsidies offered per beneficiary
$2M
in available funding

Problem

In San Diego, high childcare costs—ranging from $12,900 to $19,500 annually per child—created significant financial strain for city employees. The financial burden was particularly challenging for lower-income employees, including single parents balancing work and education. There was a recognition that childcare affordability issues were becoming an employee retention concern. As Rep. Sara Jones lamented “the cost of childcare shouldn’t prevent parents from going back to work and advancing their careers—but that’s the case for so many San Diegans, including many of the amazing employees who keep our city running.”

Solution

The San Diego Office of Child & Youth Success introduced a need-based childcare subsidy program paid directly to providers for eligible city employees. To be eligible for the program, city employees must have an individual base gross income less than $95,350 per year, work full-time or work at least 20 hours per week, while also enrolled in a training or higher education program. Monthly payments range from $100 to $1,200 per individual, based on need factors such as housing status, military/veteran status, fostering, or child disability or individual education plan. In September 2024, the City of San Diego announced it would be continuing the Municipal Child Care Benefit Pilot Program for a second year.

Results

Beneficiary Impact173 participants selected to receive funding in first year
Employee Impact100% satisfaction score of employees participating in the program
Financial Results~$5,780 in annual subsidies provided per employee towards

Replication Tips

Tap federal funds: Use one-time grant funding to pilot a scalable benefit model tied to worker need.
Automate payment rollout: Disburse monthly payments directly to providers through existing payroll or benefits systems.
Scale through departments: Begin with pilot departments or salary bands, then expand across city agencies.