San Francisco will offer free childcare to families earning less than $230,000 a year, and a 50% subsidy to those earning up to $310,000, in an expansion of the city's childcare offerings designed to makeone of the world's most expensive citiesmore affordable for residents.
San Francisco's mayor, Daniel Lurie,announcedthe initiative as part of his "Family Opportunity Agenda" on Wednesday, alongside a package of housing, education, food, healthcare, transportation and other programs focused on affordability.
"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," Lurie said in a press release announcing the subsidies. "We're committed to making San Francisco a place where families can stay, grow, and build their future."
Democrats such as Lurie have seized on opportunities to respond to the affordability crisis across the United States in recent months, even as Donald Trump calls affordability "a hoax". In his first week in office, New York's new mayor, Zohran Mamdani,announceda program offering free childcare to all of the city's two-year-olds, alongside a program led by Governor Kathy Hochul to invest in offering universal childcare to all children under age five in the state by August of 2028.
In November,New Mexico became the first state in the nationto offer free childcare to all its residents.
While many cities calculate eligibility for benefits based on national federal poverty guidelines, San Francisco generally uses area median income to calculate the cost of living. In 2025, thefederal poverty levelnationwide was $32,150 for a family of four, while thearea median incomefor a family of four in San Francisco was $155,850.
San Francisco's measure will make childcare free for a family of four making less than $230,000 a year, or 150% of the area median income, and offer a 50% subsidy to families earning less than $310,000 a year, or 200% of the area median income. Previously, free childcare was available to families earning less than 110% of the area median income.
The Children's Council of San Franciscoestimatesthat the average cost of childcare in the city is between $20,000 and $30,000 per child each year. Andthe Economic Policy Instituteranks California fourth out of 50 states and the District of Columbia for most expensive infant care. According to the Institute, infant care for one child would take up more than 18% of a median family's income in California; and care for two children could take up close to 30% of a family's income.
According to US Department of Health and Human Services guidelines, childcare is only considered "affordable" if it takes upless than7%of a family's income. Even for families earning six-figure salaries in the Bay Area, that goal is far out of reach. The mayor's new childcare proposal brings that 7% just within reach, even for families earning what would be an extravagant salary elsewhere in the country.
San Francisco will use unspent tax dollars collected after voters approved Proposition C, or "Baby Prop C", in 2018, which was delayed by an ultimately unsuccessful court challenge. The unspent funds amount to more than $550m. Families will be able to access free or reduced-cost childcare from more than500 providerscitywide.
"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, the director of the city's department of early childhood. "This is a big step toward making San Francisco a place where families can thrive."
