Governor Newsom has slashed childcare costs, saving families money
What you need to know: Governor Gavin Newsom highlighted new information from the Public Policy Institute of California showing that childcare costs have fallen significantly since the start of the Newsom Administration.
SACRAMENTO — Governor Gavin Newsom highlighted new information from the Public Policy Institute of California, revealing that since 2019, California has saved families thousands in childcare costs. Under Governor Newsom’s leadership, the Golden State has cut childcare fees, expanded access to free Universal Transitional Kindergarten, and created incentives to support working families.
“Raising a child shouldn’t break the bank. Since 2019, we’ve driven costs down, expanded access to affordable childcare, made transitional kindergarten free for every four-year-old, and built out before- and after-school programs so parents and kids can thrive. This report demonstrates that we’re putting real money back in families’ pockets, giving children a stronger start, and making California a more affordable place to raise a family.”
In California, for a family of three earning $60,000, PPIC’s chart shows annual full-time family fees for subsidized childcare falling from roughly $7,000 under the 2019–20 schedule to $0 under the 2025–26 schedule, with figures adjusted for inflation.
Since 2019, Governor Newsom has implemented key programs to help families lower the cost of raising children:
Increased before- and after-school care and summer programming for TK–6 students through the Expanded Learning Opportunities Program; students receive enrichment opportunities like homework assistance, music and arts programming, STEM enrichment, and healthy snacks while learning about nutrition.
Expanded access to subsidized childcare and invested in childcare infrastructure. Under Governor Newsom, California has added approximately 149,000 subsidized childcare slots and 3,800 grants to providers to improve facilities and increase childcare capacity.
Made California the first state in the nation to guarantee every public-school student two free meals each school day, regardless of income. Since Governor Newsom launched universal school meals, California has served 3.5 billion free meals to students statewide.
Expanded paid family leave from six weeks to eight weeks, while increasing wage replacement for working families. Eligible workers earning less than $ 65,000 annually can now receive up to 90% of their regular wages while on leave, while workers earning above that threshold can receive 70% or more.
Established and funded the nation’s first child savings account program at this scale. Launched in 2022, the California Kids Investment and Development Savings Program, or CalKIDS, provides FREE MONEY for college and career savings by giving eligible students scholarship accounts they can build over time. Families can contribute additional savings when they can, giving those dollars years to grow—and when funds are used for eligible education expenses, the earnings are tax-free.
Helped roughly 40,000 family childcare providers unionize through Child Care Providers United. California ratified its first collective bargaining agreement with the union in 2021 and has since committed more than $800 million to support members’ health, retirement, and training benefits.
Provided eligible CAL FIRE and local firefighters up to 26 weeks of paid leave for disability related to pregnancy, childbirth, or related medical conditions, with continued benefits and a right to return to their position or an equivalent one.
Eliminated local business-license fees and taxes for large family childcare homes, and protected family childcare providers against housing discrimination.
Cut red tape for qualifying day care centers in residential areas by extending CEQA streamlining, reducing a barrier to opening childcare facilities while retaining exclusions for protected lands and sites near active oil and gas facilities.
A stronger start
Under Governor Newsom’s leadership, California created a new free grade, Transitional Kindergarten (TK), available to all four-year-olds, helping prepare the youngest Californians for long-term educational success. Research shows that children who attend preschool benefit from stronger brain development and improved learning outcomes as they begin their academic journeys. Universal TK isn’t just an investment in education. It is a family investment — giving children an earlier start while helping parents save on the cost of early care and education.
In 2021, while visiting students and educators at Shearer Elementary, a diverse K–5 school in the Napa Valley Unified School District, Governor Newsom signed California’s historic education package to begin phasing in a new grade for the state’s 4-year-olds. Today, Universal TK is in its second year of full statewide implementation, making California home to the largest pre-K system in the nation and offering free TK for EVERY child, giving California families an alternative to a nearly $14,000 annual childcare bill.
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Every 4-year-old in California is eligible for transitional kindergarten.
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California TK students entered kindergarten approximately six months ahead in letter-word skills and three months ahead in applied mathematics.
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California enrolled 213,313 children in transitional kindergarten during the 2025-26 school year.
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Since 2019, California has invested $12.5 billion under Governor Newsom to fully implement transitional kindergarten.
