New York City announces $43 million to fix child care payment delays

New York City Mayor Zohran Mamdani and Chancellor Kamar Samuels have announced a $43 million investment to address payment delays affecting child care providers. The initiative aims to stabilize the Division of Early Childhood Education ahead of the September 10 school opening.

To prevent provider closures and support the rollout of a new free childcare program for 2-year-olds, the administration will reassign city staff to expedite contract registration and accelerate the processing of interest-free bridge loans. The city plans to process loan applications within five business days of submission.

Additionally, the Department of Education will deliver school supplies directly to providers and increase staff dedicated to monitoring communications with childcare facilities. The program seeks to support approximately 2,000 toddlers across five school districts during its inaugural year.