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Most Families Can't Afford Child Care, NYC Offers Free Solution

1/23/2026

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Summary

Story summary

A new analysis finds typical American families cannot afford full-time child care, defined by the Department of Health and Human Services as costing no more than 7% of income.
To meet the 7% benchmark for two children, families would need nearly $403,000 annually, while the 2024 median family income was $105,800.
New York City announced a plan for free child care for 2-year-olds as part of a universal initiative.

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Story summary

A new analysis finds typical American families cannot afford full-time child care, defined by the Department of Health and Human Services as costing no more than 7% of income.
To meet the 7% benchmark for two children, families would need nearly $403,000 annually, while the 2024 median family income was $105,800.
New York City announced a plan for free child care for 2-year-olds as part of a universal initiative.