In a bold move to address its severe affordability crisis, San Francisco has unveiled a sweeping expansion of its childcare subsidies, promising free care for many families and significant financial relief for thousands more.
A Landmark Initiative for Family Affordability
Mayor Daniel Lurie announced the policy as the cornerstone of his new "Family Opportunity Agenda" on Wednesday. The initiative will make childcare completely free for a family of four with an annual income below $230,000. Furthermore, families earning up to $310,000 will qualify for a 50% subsidy on their childcare costs.
This represents a substantial increase in support. Previously, free childcare was only available to families earning less than 110% of the San Francisco Area Median Income (AMI). The new thresholds extend support to those earning 150% and 200% of the AMI respectively.
"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 Lurie stated. "We're committed to making San Francisco a place where families can stay, grow, and build their future."
The Stark Reality of Childcare Costs
The need for such intervention is acute. According to the Children's Council of San Francisco, the average annual cost of childcare in the city ranges between $20,000 and $30,000 per child. The Economic Policy Institute ranks California as the fourth most expensive state for infant care nationwide.
For a median family in California, care for one infant consumes over 18% of their income, while two children can take nearly 30%. This is far from the US Department of Health and Human Services benchmark, which defines affordable childcare as costing less than 7% of a family's income.
"Affordable, high-quality childcare is essential for families to stay in San Francisco, but the cost can make it really challenging," said Ingrid X. Mezquita, director of the city's department of early childhood. "This is a big step toward making San Francisco a place where families can thrive."
Funding and a National Trend
The ambitious programme will be funded by more than $550 million in unspent tax revenue from Proposition C, a 2018 ballot measure known as "Baby Prop C." Its implementation was delayed by a legal challenge that ultimately failed. Families will be able to access the subsidised care through over 500 providers across the city.
San Francisco's action is part of a wider movement among Democratic leaders to confront the national affordability crunch. This stands in contrast to claims by figures like Donald Trump that the affordability crisis is "a hoax."
In recent months, New York City Mayor Zohran Mamdani introduced free childcare for all the city's two-year-olds, and Governor Kathy Hochul launched a plan for universal childcare for under-fives by 2028. In November, New Mexico became the first US state to offer free childcare to all residents.
By using local Area Median Income—$155,850 for a family of four—rather than the far lower federal poverty guideline of $32,150, San Francisco's policy acknowledges the extreme economic pressures of living in one of the world's most expensive urban centres, offering a lifeline to middle-class families who have long been squeezed.
