More than 22,000 New York City families will no longer have to pay anything out of pocket for subsidized childcare under a new initiative announced Thursday by Mayor Zohran Mamdani, marking another step in his push toward universal free childcare across the five boroughs.

Beginning next month, the city will pick up the weekly fees currently charged to families participating in the Child Care Assistance Program, eliminating the sliding-scale payments they make directly to childcare providers. City officials estimate the initiative will cost $5.2 million during its first year.

“For thousands of families, a weekly childcare fee means another bill they simply can’t afford. Making that care truly free can make all the difference,” Mamdani said in a statement.

“As part of our promise to deliver universal child care, we are eliminating these fees for families receiving childcare assistance across the city. No family should have to choose between staying in the city they love and affording care for their child. This is another step toward making affordable childcare something every New York family can count on.”

The move is part of Mamdani’s broader effort to establish free childcare throughout New York City. It also comes as the administration prepares to launch its first preschool initiative for 2-year-olds, which will provide participating families with free, year-round care for eight to 10 hours per day beginning this fall.

The Child Care Assistance Program, which receives most of its funding from the state, helps eligible families cover the cost of childcare and afterschool programs for children ranging in age from 6 weeks through 13 years.

Families generally qualify if their income is no more than 85% of New York’s median income. For a family of four, that translates to approximately $114,000 annually. Depending on household income, participating parents currently pay as much as $15 per week toward the cost of care.

“As we prepare to launch free 2-K this fall, we are making all publicly-funded care free for families,” said Emmy Liss, executive director of the Mayor’s Office of Child Care and Early Childhood Education.

More than 100,000 families currently participate in the voucher program. Families at the lowest income levels who receive public assistance already pay nothing themselves, leaving approximately 22,000 households that are currently responsible for weekly co-payments. Those are the families that will benefit directly from the new city funding.

The announcement comes even as the subsidized childcare system continues to face significant demand. More than 16,000 families remain on a waiting list for assistance because demand for vouchers has exceeded available state funding, despite increased investments in childcare by Gov. Kathy Hochul.

Supporters of universal childcare praised the city’s decision to eliminate the remaining fees, arguing that families receiving publicly subsidized care should not face different financial requirements depending on their circumstances.

“This move by the city brings us one step closer to treating childcare and early education like the public good that it should be,” said Ben Parisi, director of strategic campaign initiatives at The Action Lab, which organizes childcare providers advocating for universal childcare.

“We are glad to see a more equitable city that doesn’t charge some parents fees for public goods and not others.”

City officials said the administration is also planning for the policy to continue beyond its first year. An additional $6 million to cover families’ out-of-pocket childcare voucher expenses has already been incorporated into the baseline for the next fiscal year’s budget.