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's childcare offerings designed to make one of the world's most expensive cities more affordable for residents.
San Francisco's mayor, Daniel Lurie, announced the initiative as part of his 'Family Opportunity Agenda' on Wednesday, alongside a package of housing, education, food, healthcare, transportation and other programs focused on affordability. 'Today marks the beginning of a powerful effort to reduce the cost of living for San Francisco families by tens of thousands of dollars each year,' Lurie said in a press release.
The 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.
The Children's Council of San Francisco estimates that the average cost of childcare in the city is between $20,000 and $30,000 per child each year. The Economic Policy Institute 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's income in California; and care for two children could take up close to 30% of a family's income.
San Francisco will use unspent tax dollars collected after voters approved Proposition C 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 citywide.
