About 2,000 New York City children received offers Tuesday for the city’s first free 2-K seats, while roughly 3,700 applicants were placed on waitlists as a new report estimated that providing universal child care could require as much as $9.3 billion annually in direct service funding.
More than 5,700 families applied for just over 2,000 seats beginning this fall, nearly three applicants for every available spot, according to City Hall.
Mayor Zohran Mamdani and Gov. Kathy Hochul announced the first placements at Bedrock Preschool in the Bronx on Aug. 4, describing the response as evidence of intense demand for free child care.
City Hall estimates that each seat will save a family an average of $26,000 a year, with most offering full-day, full-year care. The city plans to expand the program to about 12,000 children next year and make seats available in all five boroughs. Mamdani has pledged that every family seeking a 2-K seat will have access to one by the end of his first term as part of his universal childcare campaign promise.
The announcement came one day after the Center for New York City Affairs at The New School released a model estimating that a high-quality, stable universal child care system for children ages 6 weeks to 5 years old would require between $8.7 billion and $9.3 billion annually in New York City, depending on participation.
The analysis estimated that the city spent about $3.82 billion on direct child care services in fiscal year 2025, leaving an annual gap of between $4.9 billion and $5.5 billion. The model includes workers’ pay, health insurance and program operating expenses.
Asked about the estimate at Tuesday morning’s announcement, Hochul said the state would conduct “an independent verification of the actual costs required.”
Mamdani did not say whether the new figure was more realistic than a previous estimate or provide a timeline for the review.
“The question is not about whether this will cost money; it’s a question of who will pay that money,” Mamdani said, pointing to families spending between $20,000 and $40,000 annually on child care.
The state has committed $1.2 billion over two years to the initial seats, next year’s expansion, 3-K improvements, and additional child care vouchers, Mamdani noted, as Hochul said she could not pledge funding in future budgets. Mamdani did not directly answer whether he believes that higher taxes on wealthy New Yorkers and corporations would still be needed to fund the system.
Among those receiving offers on Tuesday, 82% were matched with one of their top three choices, according to City Hall, while Mamdani said close to 60% received their first choice. Ninety-nine percent received an offer from a program listed on their application.
Priority went to children living in participating districts, those already attending a program and those with siblings enrolled there. Offers were essentially determined by lottery within each priority group. Unsuccessful applicants were automatically placed on waitlists for programs they ranked.
Officials said they were working to add some capacity before the school year begins.
New Yorkers United for Child Care, which helped lead the campaign for free 2-K, celebrated the first placements while arguing that the number of families left without offers showed how far the city remains from universal access.
“Today’s announcement shows what’s possible when the government invests in families,” said Kellan Calder, a community organizer with the group. “But we’re still a long way from universal.”
Calder called on Hochul and state lawmakers to provide permanent funding and develop a plan for universal care from birth through age 5.
The group also urged policymakers not to retreat over the higher estimate. Executive Director Rebecca Bailin said the city could not finance universal care alone and called for dedicated state revenue and enough funding to pay child care workers a living wage.
“The real question isn’t whether we can afford to pass universal child care,” Bailin said. “It’s whether we can afford to keep losing the families who are the foundation of New York’s tax base.”
Under the model’s higher-uptake scenario, the Center for New York City Affairs report estimated that the city would need 10,475 additional seats, 1,182 additional programs, and 23,640 more center- and home-based workers. It said substantial unused capacity already exists, making staffing and provider stability greater challenges than construction.
The report also warned that the 2-K contracting structure excludes about 80% of home-based providers because they lack network affiliations, potentially contributing to closures and reducing the capacity needed for expansion.