Recently, I met a couple I know at a café, and they sighed heavily over their coffee cups. They received a quote for their second child's daycare, and it was more than the tuition for their first child's college.

At first, I thought it was a joke. But when I got home and looked up the information, I was no longer laughing.

According to an analysis by the Economic Policy Institute (EPI) released in March 2025, there are 38 states and Washington D.C. where the cost of infant care is higher than the tuition at public state universities. This is based on federal data from 2023 and information from nonprofit organizations.

In a previous analysis (from 2020), it was reported that 33 states and D.C. had this issue. So, in just a few years, five more states have joined the list.

The 2025 price report released by Child Care Aware of America on May 13 of this year tells a similar story. It summarized that more than half of the states have infant care costs that exceed in-state public university tuition.

The same report indicated that the national average annual cost of childcare is $13,184. This amount represents 10% of the median income for married couples and 33% of the median income for single-parent households.

The difference in the number of states reported by the two organizations is due to variations in the reference year and calculation methods. Therefore, rather than fixating on a single number, it seems more appropriate to read it as "more than half of the states are affected."

So, what about New York? I opened the Child Care Aware data for New York (based on 2024) and honestly found myself staring blankly for a while.

Sending an infant to a center-based daycare costs $20,439 per year. For toddlers, it's $18,661, and for family child care, the cost for infants is $16,415.

For comparison, the college tuition used in the same data was $8,730. The cost of infant care far exceeds the tuition.

For reference, according to the official SUNY guide, the tuition for New York residents for the 2025-26 academic year is $7,070. Additional student fees and housing costs are separate.

If you have two children, the burden is even heavier. Sending an infant and a 4-year-old to a center costs $37,783 per year, which is higher than the housing cost of $30,012 reported in the same data.

When viewed in relation to income, it becomes even more striking. Based on the median income of married couples in New York, which is $141,123, the cost of infant center care is 14% of their income.

For single-parent households with a median income of $40,903, the same childcare cost represents 50% of their income. The federal Department of Health and Human Services considers a sustainable level to be 7% or less of income.

Listing out the numbers can sound cold, but ultimately, this is about the parents who stand at the door every morning holding their child's hand. That made it all the more concerning.

Fortunately, there's no need to feel helpless. First, it's worth looking into federal tax benefits.

Starting in 2026, the limit for the Dependent Care FSA provided by employers will increase from $5,000 to $7,500 per household. If couples file separately, each can claim $3,750.

However, just because the federal limit has increased doesn't mean all company plans will automatically follow suit. Be sure to ask your HR department about the limits of your company's plan.

The Child and Dependent Care Credit will also see an increase in the maximum deduction rate from 35% to 50% starting in 2026. The limit for qualifying expenses remains at $3,000 for one child and $6,000 for two or more children.

The 50% rate applies to households with lower incomes, and the rate decreases as income rises. It's safest to check the exact brackets in the IRS Form 2441 instructions.

New York also has a childcare assistance program (Child Care Assistance Program). The income eligibility is up to 85% of the state median income, so the eligibility is broader than one might think.

Applications are received through the county social services department, and the co-payment is determined based on income. The eligibility criteria are updated periodically, so be sure to check the latest information from OCFS or your county.

And there's some good news for Monroe County. The state government has decided to invest $20 million in a pilot program for childcare for children aged 0-3.

This is a three-year program aimed at supporting an additional 1,000 children. Notably, there are no income eligibility requirements, and the county must contribute $2 million.

Applications for childcare providers will be accepted in late fall or early winter, and the actual services are expected to start in 2027. Broome and Dutchess counties have also been selected as pilot areas.

Tax and support eligibility can vary from household to household, so my summary may not be definitive. It's important to check with a tax professional or county representative based on your individual situation.

If I were in your shoes, I would maximize my FSA contributions during the year-end company benefits enrollment period and check my county's childcare support eligibility. I would also keep an eye on news about the pilot program.

It's a bit bittersweet that childcare is more expensive than college. Still, I hope this article provides a small moment of relief for some parents by sharing what I know.