NY Childcare Programs Can Soon Apply for $500 Million Grant Program to Encourage Worker Retention
By Yehudit Garmaise
On July 15, childcare programs can start to apply for a $500 million grant program that seeks to keep employed the essential workers who provide care for children.
More than 150,000 childcare providers nationwide will receive bonus payments ranging from $2,300 to $3,000 through this year’s New York’s Workforce Retention Grant Program.
Childcare programs can use the funds to not only provide bonuses to current staff but also recruit new staff and offer sign-on and referral bonuses.
In addition, New York State, employers and employees will share the cost of childcare, thanks to a $4.8 million designation in the 2024 fiscal year budget.
To qualify for the new Employer-Sponsored Childcare Pilot Program, families must earn between 85% and 100% of the State median income.
The 2024 Budget also established a $25 million annual Employer Childcare Tax Credit for businesses that create new or expanded childcare opportunities for their workers.
Since 2006, the Empire State Child Credit (ESCC) has excluded children under 4 years old, but in 2024, New York will provide an additional average benefit of $340 per affected taxpayer and $284 per newly included child.
The state will also provide $179 million to support 525,000 low and middle-income taxpayers, thanks to the inclusion of nearly 630,000 additional children.
The additional funds are being provided for childcare providers and expanded tax credits for families with children in an attempt to keep residents from leaving the State that rates as one of the country’s most expensive.
According to wisevoter.com, New York’s cost of living ranks as the fourth-highest in the U.S.: after Hawaii, Massachusetts, and California.