Officials to offer 50% subsidy up to $310,000 in effort to make one of world\u2019s most expensive cities more affordable<\/p>\n\n\n\n
Cecilia Nowell<\/a> Thu 15 Jan 2026 (TheGuardian.com)<\/p>\n\n\n\n San Francisco will offer free childcare to families earning less than $230,000 a year, and a 50% subsidy to those earning up to $310,000, in an expansion of the city\u2019s childcare offerings designed to make one of the world\u2019s most expensive cities<\/a> more affordable for residents.<\/p>\n\n\n\n San Francisco\u2019s mayor, Daniel Lurie, announced<\/a> the initiative as part of his \u201cFamily Opportunity Agenda\u201d on Wednesday, alongside a package of housing, education, food, healthcare, transportation and other programs focused on affordability.<\/p>\n\n\n\n \u201cToday marks the beginning of a powerful effort to reduce the cost of living for San Francisco<\/a> families by tens of thousands of dollars each year,\u201d Lurie said in a press release announcing the subsidies. \u201cWe\u2019re committed to making San Francisco a place where families can stay, grow, and build their future.\u201d<\/p>\n\n\n\n Democrats such as Lurie have seized on opportunities to respond to the affordability crisis across the United States in recent months, even as Donald Trump calls affordability \u201ca hoax<\/a>\u201d. In his first week in office, New York\u2019s new mayor, Zohran Mamdani, announced<\/a> a program offering free childcare to all of the city\u2019s two-year-olds, alongside a program led by Governor Kathy Hochul to invest in offering universal childcare to all children under age five in the state by August of 2028.<\/p>\n\n\n\n In November, New Mexico became the first state in the nation<\/a> to offer free childcare to all its residents.<\/p>\n\n\n\n While many cities calculate eligibility for benefits based on national federal poverty guidelines, San Francisco generally uses area median income to calculate the cost of living. In 2025, the federal poverty level<\/a> nationwide was $32,150 for a family of four, while the area median income<\/a> for a family of four in San Francisco was $155,850.<\/p>\n\n\n\n San Francisco\u2019s measure will make childcare free for a family of four making less than $230,000 a year, or 150% of the area median income, and offer a 50% subsidy to families earning less than $310,000 a year, or 200% of the area median income. Previously, free childcare was available to families earning less than 110% of the area median income.<\/p>\n\n\n\n The Children\u2019s Council of San Francisco estimates<\/a> that the average cost of childcare in the city is between $20,000 and $30,000 per child each year. And the Economic Policy Institute<\/a> ranks California fourth out of 50 states and the District of Columbia for most expensive infant care. According to the Institute, infant care for one child would take up more than 18% of a median family\u2019s income in California; and care for two children could take up close to 30% of a family\u2019s income.<\/p>\n\n\n\n According to US Department of Health and Human Services guidelines, childcare is only considered \u201caffordable\u201d if it takes up less than<\/a> 7%<\/a> of a family\u2019s income. Even for families earning six-figure salaries in the Bay Area, that goal is far out of reach. The mayor\u2019s new childcare proposal brings that 7% just within reach, even for families earning what would be an extravagant salary elsewhere in the country.<\/p>\n\n\n\n San Francisco will use unspent tax dollars collected after voters approved Proposition C, or \u201cBaby Prop C\u201d, in 2018, which was delayed by an ultimately unsuccessful court challenge. The unspent funds amount to more than $550m. Families will be able to access free or reduced-cost childcare from more than 500 providers<\/a> citywide.<\/p>\n\n\n\n \u201cAffordable, high-quality childcare is essential for families to stay in San Francisco, but the cost can make it really challenging,\u201d said Ingrid X Mezquita, the director of the city\u2019s department of early childhood. \u201cThis is a big step toward making San Francisco a place where families can thrive.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":" Officials to offer 50% subsidy up to $310,000 in effort to make one of world\u2019s most expensive cities more affordable Cecilia Nowell Thu 15 Jan 2026 (TheGuardian.com) San Francisco will offer free childcare to families earning less than $230,000 a year, and a 50% subsidy to those earning up to… Continue reading