San Francisco will provide free childcare to families earning under $230,000 and a 50% subsidy to those earning up to $310,000, as part of Mayor Daniel Lurie's "Family Opportunity Agenda." The expansion is funded with more than $550 million in unspent Proposition C revenues and will include over 500 providers citywide. Officials say the plan aims to bring childcare costs closer to the U.S. Department of Health and Human Services' 7% affordability guideline for families.
San Francisco Expands Childcare: Free for Families Under $230K, 50% Subsidy up to $310K
People walk near the Golden Gate Bridge in San Francisco.Photograph: Stephen Lam/San Francisco Chronicle via Getty Images(Photograph: Stephen Lam/San Francisco Chronicle via Getty Images)
San Francisco will expand subsidized childcare so that families earning less than $230,000 per year receive free care and households earning up to $310,000 are eligible for a 50% subsidy. The move, announced by Mayor Daniel Lurie as part of his "Family Opportunity Agenda," is intended to help make life in one of the world's most expensive cities more affordable for families.
What the Plan Covers
Under the new policy, a family of four making below $230,000 annually (150% of Area Median Income, or AMI) will qualify for free childcare, while families earning up to $310,000 (200% of AMI) will receive a 50% subsidy. Previously, free childcare was available only to families earning less than 110% of AMI. The city estimates more than 500 licensed providers will participate in the expanded program.
Funding and Scale
The expansion will be funded with more than $550 million in unspent tax revenues from Proposition C (commonly called "Baby Prop C"), approved by voters in 2018 and released after a court challenge was resolved. City officials say the funds will be directed to existing providers across San Francisco to broaden access and lower out-of-pocket costs for families.
Why This Matters
The Children’s Council of San Francisco estimates childcare costs in the city range from $20,000 to $30,000 per child per year. The Economic Policy Institute ranks California fourth-highest nationwide for infant care expenses; infant care can consume more than 18% of a median family’s income in the state, and care for two children can approach nearly 30%.
"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," Mayor Daniel Lurie said in announcing the plan. "We're committed to making San Francisco a place where families can stay, grow, and build their future."
Federal guidelines from the U.S. Department of Health and Human Services define childcare as "affordable" when it costs less than 7% of a family's income. City officials say the new subsidies aim to bring San Francisco families much closer to that benchmark, even for households earning six-figure salaries by national standards.
Ingrid X. Mezquita, director of the city's Department of Early Childhood, added, "Affordable, high-quality childcare is essential for families to remain in San Francisco. This expansion is a significant step toward helping families thrive here."
Context and Comparisons
San Francisco's move follows similar steps in other U.S. jurisdictions: New Mexico last year became the first state to offer free childcare statewide, and New York City and New York State have announced ambitious childcare initiatives as well. Unlike programs tied to federal poverty guidelines, San Francisco bases eligibility on Area Median Income to better reflect local cost-of-living realities.
Families interested in the program should watch for application details from the city's Department of Early Childhood and participating providers.
Help us improve.
