San Francisco to Offer Free Childcare for Families Earning Under $230,000 in Sweeping Affordability Push
San Francisco is dramatically expanding access to subsidized childcare, announcing that families earning under $230,000 a year will now qualify for free childcare, while those earning up to $310,000 will receive a 50% subsidy. City leaders say the move is aimed at easing the cost-of-living crisis in one of the most expensive cities in the world.
Mayor Daniel Lurie unveiled the policy Wednesday as part of his new “Family Opportunity Agenda,” a broad affordability package that also includes initiatives tied to housing, education, food access, healthcare, and transportation. In a statement, Lurie said the plan is designed to save families “tens of thousands of dollars each year” and help ensure San Francisco remains a city where families can “stay, grow, and build their future.”
Under the new thresholds, a family of four earning less than 150% of the city’s area median income — about $230,000 — will be eligible for fully subsidized childcare. Families earning up to 200% of area median income, roughly $310,000, will qualify for half-off childcare costs. Previously, free childcare was limited to households earning below 110% of area median income.
City officials say the change reflects the unique cost pressures in San Francisco, where traditional federal poverty guidelines often fail to capture the realities faced by middle-income families. While the federal poverty line for a family of four is just over $32,000, the area median income in San Francisco is more than $155,000.
The financial stakes are significant. The Children’s Council of San Francisco estimates that childcare costs range from $20,000 to $30,000 per child per year. National data from the Economic Policy Institute shows California is among the most expensive states in the country for infant care, with two children in care consuming close to 30% of a typical family’s income. Federal guidelines consider childcare affordable only when it consumes less than 7% of household income — a benchmark many Bay Area families struggle to meet, even with six-figure salaries.
The expanded program will be funded using more than $550 million in unspent revenue generated by Proposition C, also known as “Baby Prop C,” which voters approved in 2018 to fund early childhood education. Distribution of those funds was delayed for years by legal challenges that were ultimately unsuccessful.
Families will be able to access subsidized care through more than 500 childcare providers across the city. Ingrid X. Mezquita, director of San Francisco’s Department of Early Childhood, said the expansion is critical to keeping families from being priced out. “Affordable, high-quality childcare is essential for families to stay in San Francisco,” she said. “This is a big step toward making San Francisco a place where families can thrive.”
The announcement comes as other Democratic-led cities and states move toward universal or near-universal childcare. New York City recently launched free childcare for all two-year-olds, and New Mexico has already implemented statewide free childcare for families. Supporters say the momentum reflects growing recognition that childcare is not just a family issue, but an economic one tied to workforce participation, gender equity, and long-term economic stability.
