Low-income families can continue using child care vouchers for the time being, according to the ACS commissioner.

New York City is taking significant steps towards securing additional funding for its Child Care Assistance Program, a move that could avert the potential loss of critical support for thousands of families. Recently, during a City Council hearing focused on the budget for the Administration for Children’s Services (ACS), Commissioner Jess Dannhauser indicated that local investments could unlock matching funds from the state government, thereby reinforcing the financial stability of the program.

The Child Care Assistance Program has been at risk due to a growing demand for services that far exceeded the available state funding. If the funding situation had not improved, it was estimated that between 4,000 to 7,000 children could lose their vouchers each month as their families entered annual recertification processes. This looming crisis prompted discussions between city and state officials, leading Governor Kathy Hochul to propose a legislative agreement allowing New York City access to an additional 0 million in state funds, contingent on the city’s increased financial commitment.

The city’s response, however, has been closely scrutinized. Mayor Eric Adams’ executive budget plan did not allocate any new funding for the vouchers, raising concerns among local lawmakers. In response to the ongoing funding disputes, City Hall had previously frozen new enrollment in the voucher program for families not federally mandated to receive assistance. Local officials made a concerted push for additional state funding, but these efforts did not yield positive results.

Following negotiations, a recent state approval permits the ACS to continue servicing most children currently enrolled in the program. This decision comes with revised eligibility criteria that prioritize families earning under 300% of the federal poverty line, as well as those who are homeless or have disabilities. Unfortunately, this change is expected to result in approximately 2,000 low-income children losing their vouchers from a total of nearly 70,000 that are currently enrolled in the assistance program.

Commissioner Dannhauser expressed a degree of optimism regarding the continuity of services, yet he emphasized the financial burden placed on the city by the state’s policies. Notably, the state budget has now increased the city’s required contribution to the voucher program by 518%, from million to 8 million, a move that has garnered criticism from City Council members who question its feasibility and fairness.

As the city prepares to finalize its budget by the end of next month, child care advocates are rallying for increased investments in both afterschool programs and child care vouchers. Advocates assert that while the state has committed to funding support, the city must also uphold its responsibilities to ensure the program’s viability. With tens of thousands of families depending on this assistance, the outcome of the city’s budget discussions will be pivotal for ongoing support of child care services in New York City.