SF Offers Subsidized Childcare to Families Making $325K

Mayor wants to prevent an exodus of middle-class families as costs surge
Posted Oct 21, 2026 12:30 PM CDT
SF Families Earning $325K Qualify for Childcare Aid
Mayor Daniel Lurie speaks at the 2026 California Democratic Party State Convention in San Francisco, Saturday, Feb. 21, 2026.   (AP Photo/Jeff Chiu)

In San Francisco, a six-figure paycheck is not a barrier to receiving subsidized childcare. The city is offering free preschool to families of four earning up to $235,000, and half-price child care to those making as much as $325,000—more than triple the US median household income. Officials say it's the only way to keep nurses, teachers, and other non-tech workers from packing up as the AI boom sends housing and everyday costs soaring, the New York Times reports. The city already has the fewest children per capita in the US.

Median rent for a two-bedroom has hit $4,640, and a typical single-family home now tops $2 million. The program, funded largely by a business tax, covers more than 9,300 children. "We're committed to making San Francisco a place where families can stay, grow, and build their future," Mayor Daniel Lurie said when the policy was announced earlier this year, per the Guardian. It was part of a package of programs focused on affordability.

Families say the help is crucial, but even with subsidies and downsizing, many describe life in the city as a financial grind. "Yes, it is an incredibly, extraordinarily expensive city to live in and to work in and to thrive," Lurie tells the Times. "That's why 50% off at $325,000 is so essential." He says any successful city needs middle-class workers like nurses, teachers, firefighters, and police officers. "We don't want them leaving for the suburbs or for other states," Lurie says. "We want them here in San Francisco, and that's what it takes, so that's what we're doing."

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