The childcare subsidies will be financed through a commercial rent tax that voters approved in 2018, with unspent funds covering about 20,000 children through 2032.
San Francisco plans to expand free and subsidized childcare to tens of thousands of children as Mayor Daniel Lurie looks to make his notoriously expensive city more affordable for middle-class families.
The expansion will provide free childcare for kids aged 5 and under in families earning less than $230,000 per year and cover half of expenses for families making up to $310,000.
"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 an announcement. "We're committed to making San Francisco a place where families can stay, grow, and build their future."
San Francisco consistently ranks among the most expensive cities in the US, with housing, childcare and other daily costs exceeding national averages. Data collected by the Children's Council of San Francisco show that full-time infant care in the city can cost as much as $30,000 a year, an expense that can rival rent payments.
Lurie, an heir to the Levi Strauss fortune, is embracing an affordability agenda that has gained popularity among Democrats across the US after sweeping losses in the 2024 elections. New York Mayor Zohran Mamdani won a landslide election in November on a promise to expand early childcare and is now working with New York Governor Kathy Hochul to fund the pledge. They announced last week a new investment to provide free childcare for all 2-year-old children in New York City.
San Francisco's childcare subsidies will be financed through a commercial rent tax that voters approved in 2018 to provide universal early childcare in the city. But since the measure passed, much of the revenue -- roughly $570 million -- has gone unspent. Childcare advocates have been calling on the mayor to put the money to good use.
The unspent funds will cover about 20,000 children through 2032, according to Lurie's spokesperson, Charles Lutvak.
"For families in the middle-income range, childcare costs are an enormous burden," Sara O'Neill, founder of the Slippery Fish co-opperative pre-school, said in a statement. "This investment offers real relief."