TL;DR
San Francisco will provide free childcare to families with incomes below $230,000 and a 50% subsidy for those earning up to $310,000 under a new affordability package. The program is funded with unspent tax revenue from a 2018 ballot measure and will be available through over 500 local providers.
What happened
Mayor Daniel Lurie unveiled a "Family Opportunity Agenda" that expands the city's childcare subsidies. Under the plan, families of four with incomes below $230,000 (150% of San Francisco’s area median income for 2025) will receive free childcare, while families earning up to $310,000 (200% of area median income) are eligible for a 50% subsidy. The policy widens eligibility from the prior cutoff, which had provided free care only to households at or below 110% of area median income. San Francisco plans to use more than $550 million in unspent tax dollars from Proposition C (approved by voters in 2018) to finance the initiative. Officials say services will be offered through a network of more than 500 providers across the city, and city officials framed the move as part of a broader package addressing housing, education and other affordability issues.
Why it matters
- Significantly increases eligibility for subsidized childcare in a city with high care costs, potentially lowering family expenses by thousands of dollars.
- Uses existing locally raised funds to expand services rather than relying solely on new taxes or state/federal allocations.
- Could influence other cities and states considering expanded childcare supports amid rising cost-of-living pressures.
- Aims to make San Francisco more viable for families who might otherwise be priced out by childcare and housing costs.
Key facts
- Free childcare available to families of four earning less than $230,000 a year (150% of SF area median income for 2025).
- A 50% subsidy will be offered to families earning up to $310,000 a year (200% of SF area median income).
- The previous free-care eligibility threshold was 110% of area median income.
- Funding will come from more than $550 million in unspent tax dollars collected after voters approved Proposition C in 2018; the measure faced and survived a court challenge that delayed implementation.
- More than 500 childcare providers across San Francisco will participate in offering free or reduced-cost care.
- The Children’s Council of San Francisco estimates average childcare costs in the city at $20,000–$30,000 per child per year.
- The Economic Policy Institute ranks California fourth-highest for the cost of infant care; infant care can consume over 18% of a median family’s income in the state.
- U.S. Department of Health and Human Services guidance considers childcare affordable when it costs under 7% of a family’s income; city officials say the proposal brings that benchmark closer for many Bay Area families.
- San Francisco typically calculates benefit eligibility using area median income rather than federal poverty guidelines; for context, the 2025 federal poverty level for a family of four was $32,150 while SF’s AMI for a family of four was $155,850.
What to watch next
- Timeline for rollout and start dates for families to enroll: not confirmed in the source.
- Details of the enrollment and eligibility verification process for families: not confirmed in the source.
- How the city will manage provider capacity and whether additional providers or slots will be added: not confirmed in the source.
Quick glossary
- Area Median Income (AMI): A regional midpoint of household income used to set eligibility for many housing and benefit programs; it reflects local cost-of-living differences.
- Subsidy: A financial contribution from a government or organization to reduce the cost of a service for eligible recipients.
- Proposition C ("Baby Prop C"): A 2018 San Francisco ballot measure that imposed taxes to fund early childhood services and related programs; it generated tax revenue earmarked for childcare and other supports.
- Federal Poverty Level (FPL): A federal income threshold used to determine eligibility for certain federal programs and benefits.
- Childcare provider: An individual or organization that offers care and supervision for young children, including licensed centers and family childcare homes.
Reader FAQ
Who is eligible for free childcare under the new plan?
Families of four making less than $230,000 a year (150% of San Francisco’s 2025 AMI) are eligible for free childcare; families earning up to $310,000 (200% of AMI) are eligible for a 50% subsidy.
How is the program funded?
City officials say the expansion will be paid using more than $550 million in unspent tax revenues collected after voters approved Proposition C in 2018.
How many providers will participate?
The city says more than 500 providers across San Francisco will offer free or reduced-cost childcare.
When will the expanded benefits begin?
not confirmed in the source
View image in fullscreen People walk near the Golden Gate Bridge in San Francisco. Photograph: Stephen Lam/San Francisco Chronicle via Getty Images San Francisco San Francisco to make childcare free…
Sources
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