After severe funding delays hampered the launch of Mayor Zohran Mamdani’s free childcare program for 2-year-olds, many providers said they’re finally seeing money in their accounts.
But others said they’re still waiting for funds more than a week into the school year. One Queens program had to reduce how long their 2-K program is open because they said they have no money to pay staff.
The Mamdani administration said it's continuing to quickly process no-interest loan applications while staff gets expired contracts and new agreements approved. City officials said all completed loan applications submitted before the first day of school, about 400, were approved and more than half the contracts, about 700, are registered or with the city comptroller.
“We are working around the clock to make sure that we can get providers what they need. We are grateful to have made so much progress and we know our work is not done,” said Emmy Liss, executive director of the Mayor’s Office for Child Care.
“Beyond this, our commitment is to rebuild our systems and structure to ensure that we don’t see something like this ever happen again and the city can be the contracting partner that our providers deserve.”
The rollout of 2-K is one of Mamdani’s highest-profile pledges and the first major step toward building the universal childcare system he promised. While prior administrations have routinely issued late payments to the city’s contracted childcare providers, providers said they usually have money to start the school year. Without that funding, some providers opened their doors owing rent and in debt, while at least one site delayed welcoming children back by a week.
The late payment crisis is putting a spotlight on a broken system of lagging payments, wage disparities and outdated contract rates that providers say needs to be fixed for Mamdani’s childcare expansion to work. The mayor wants to grow 2-K to 12,000 seats next year, up from 2,000 and eventually offer free care for every 2-year-old by the end of his first term.
Now, providers said they’re starting to worry about making payroll and rent next month. Some are even applying for a second round of city loans, in case their contracts aren’t approved in time.
“Everyday I’m emailing somebody, fighting with somebody, yelling with somebody," said Theresa Rawdon, a Queens provider offering 2-K. She said she’s received a city loan to pay for her 3-K and preK programs and finally received her 2-K loan on Thursday. But she’s still waiting on an approved contract.
“Who is liable if something happens to one of these children? I’m a nobody, I’m a schmuck that has 12 2-year-olds screaming in a classroom with no money.”
Part of the problem this year was that many of the city’s contracted childcare providers who offer free programs had their contracts expire this summer. City officials said that’s about 1,800 contracts. Though payments can be late, providers usually have an advance on their contracts or a city loan to kick off the year.
Without the funds, providers couldn’t buy supplies, pay rent or staff, or afford to get their classrooms ready for incoming toddlers. One Brooklyn preschool that delayed the first day of school finally reopened this week.
“I grew up in this business and it’s getting worse, it should be a walk in the park for me and every year they make it harder and harder,” said Linda Indelicato, who runs a 3-K and pre-K program on Staten Island and is still waiting for her contract or a $200,000 loan to get approved.
“They tell us how much they need us but we’re not appreciated.”
City officials have reassigned staffers to bolster the city’s Department of Education, which is processing contracts. Childcare advocates said the agency had been hollowed out in recent years and doesn’t have enough staff to review old and new contracts, adding to the delay.
“What we experienced in these last two weeks, I think, is a fraction of how bad the problem can get with an even larger workforce if we don't figure this out in 2026,” said Councilmember Jennifer Gutiérrez, who chairs the Council’s early childhood education subcommittee.
She said if the city wants to successfully make childcare universal, it needs to start building trust with providers to get them to participate.
“They want to be a part of universal childcare, it is to their benefit, it's to their families’ benefit, their community's benefit. But they are very fearful for their business.”
Join WNYC's All Things Considered for a live event on Sept. 30 focused on childcare affordability. The event will feature parents, childcare providers and policymakers, to explore solutions that can help families stay and thrive in New York City.
The event takes place at the Snug Harbor Newhouse Center for Contemporary Art on Staten Island. Doors open at 6:30 p.m., and the event begins at 7 p.m. Tickets are free, but registration is required. For more information and to register, visit wnyc.org/events.
