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Child‑care Voucher Gap: State Aid, City Match and Uncertainty Loom Over Families
Summary
Council members pressed OMB about a child‑care voucher funding gap after the state enacted a $350 million appropriation; OMB and ACS officials gave differing figures for the city minimum match and emphasized continuing uncertainty pending state guidance.
Council members pressed the mayor’s budget office about a funding shortfall for the city’s childcare voucher program after the state enacted a supplemental appropriation.
The enacted state budget includes $350 million intended to support child‑care vouchers for the coming year. Council members asked OMB how much the city would need to contribute to access the full state funds. Jacques Shishaha, director of the Mayor’s Office of Management and Budget, said the state requires a city contribution and indicated the city’s required minimum contribution is $328,000,000, describing it as the maintenance‑of‑effort amount discussed with city agencies. When pressed, he said the “minimum we need to put in is about $228,000,000,” and that the administration was still awaiting detailed state guidance on how to access the funds.
Council members raised concerns about the program’s waiting lists and whether families currently receiving vouchers could keep them. OMB officials declined to provide a firm final cost, saying estimates depend on multiple assumptions — enrollment uptake, caseload changes, and pending state rules — and that OMB and ACS (Administration for Children’s Services) were still assessing need. At the preliminary budget hearing, ACS had projected FY26 voucher expenditures in a wide range; OMB repeated that the program has “so many moving parts” and that the city would work with ACS to cover needs as they become clear.
Council members urged the administration to protect families already enrolled, to avoid placing households on waiting lists, and to pursue state or city actions to stabilize long‑term funding. Comptroller Brad Lander and IBO also testified that the city should be preparing contingencies — adding to reserves or identifying other one‑time sources — to manage the risk that the state contribution or federal funding could change.
Next steps: OMB said it is working with ACS to refine the estimate and obtain state guidance. Council offices and the administration were scheduled to continue negotiations during the adoption period; council members signaled they expect a clear plan that preserves access for families currently enrolled in the voucher program.
