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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 make one of the world’s most expensive cities more affordable for residents.

San Francisco’s mayor, Daniel Lurie, announced the initiative as part of his “Family Opportunity Agenda” on Wednesday, alongside a package of housing, education, food, healthcare, transportation and other programs focused on afhttps://www.theguardian.com/us-news/2026/jan/15/san-francisco-childcare-familiesfordability.

“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, announced a 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 nation to 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, the federal poverty level nationwide was $32,150 for a family of four, while the area median income for a family of four in San Francisco was $155,850.

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