Families with young children in San Francisco face some of the highest costs in the country, and child care is a big part of that. For many, the price and unpredictability of care affect whether parents can keep working, whether early educators stay in the field, and whether families can afford to stay in the city.
Last week, the San Francisco Department of Early Childhood (DEC) launched the next step of the City’s 2018 Proposition C plan, also called “Baby” Prop C, as part of Mayor Daniel Lurie’s new Family Opportunity Agenda. This effort will make free and low-cost child care available to most families in San Francisco, add more early developmental supports, and invest in the early educator workforce. The goal is to give families real choices and ensure highly qualified providers can stay in the field.
Delivering on Baby Prop C
When voters passed “Baby” Prop C in 2018, San Francisco committed to expanding early learning for young children. A court delay meant the funds weren’t available until 2021. Since then, the fund has grown to over $550 million, and DEC is now using these resources to provide ongoing services for children from birth to age five, while also putting safeguards in place to protect families and providers if the economy changes.
“This represents a major step toward making San Francisco a place where families can thrive,” said Mayor Daniel Lurie. “We are launching an effort to make sure every family in San Francisco has access to child care—taking on one of the biggest costs families face.”
As DEC moves into this next step , we are delivering on the promise of Baby Prop C by making early care and education affordable for all San Francisco families and ensuring educators earn wages on par with similarly qualified K-12 teachers.
Expanding Free and Low-Cost Child Care for Working Families
For countless families, the question is not whether early learning is important, but whether they can afford it, plan for it, and find care that fits their lives. DEC’s plan is designed to address these barriers, uphold the highest quality standards, and ensure that providers have the resources and stability necessary to serve families effectively.
Beginning immediately, the vast majority of San Francisco families will have access to free or low-cost child care through the Early Learning For All (ELFA) program. Support is structured in two tiers, determined by income and family size:
- Free Enrollment
Families with incomes up to 110% of the Area Median Income (AMI) (ex, up to $171,450 for a family of four) remain eligible for free enrollment. They may select from more than 500 participating programs in the ELFA network.
- Tuition Credit
Now, families with incomes between 111% and 150% of the Area Median Income (AMI) will be eligible for a tuition credit that fully covers the DEC’s rate at any ELFA program. As a result, child care will become free or nearly free for the majority of these families. In addition, starting this Fall, families earning up to 200% of AMI will qualify for a 50% child care subsidy (e.g., up to $310,000 for a family of four), providing greater access to affordable early learning opportunities across the city.
As eligibility for child care subsidies expands, DEC anticipates a significant increase in enrollment. To prepare for this growth, DEC is making targeted investments in facilities, building provider capacity, and expanding infant and toddler care in neighborhoods with the greatest demand.
Expanding Capacity Where Families Need it Most
Currently, the centralized ELFA waitlist includes approximately 700 children. This is despite the fact that there are more than 1,000 open slots available across over 500 programs, with up to 14,000 spaces citywide. Many families on the waitlist are already enrolled in a program and are seeking either a different location or care at a later date.
The most significant gap in available child care remains for infants and toddlers. At present, 81 percent of families on the waitlist are seeking these slots, which have the lowest licensed supply in the city. The availability of openings varies by provider type and neighborhood, with family child care homes often able to offer more spaces than other providers.
To scale responsibly, DEC is expanding capacity and staffing by: adding 1,100 new spaces through capital projects over the next five years, bringing new programs into ELFA with training and support, growing infant/toddler classrooms by repurposing underused preschool spaces, and strengthening the workforce through educator Pathways recruitment, compensation, and Proposition C retention investments.
“Affordable, high-quality child care is essential for families to stay in San Francisco,” said Ingrid X. Mezquita, Executive Director of the San Francisco Department of Early Childhood. “With the Family Opportunity Agenda, Mayor Lurie is making it possible for every family with young children to access care. This supports over 500 providers and helps parents save money.”
Translating Investment into Positive Outcomes for Children and Stability for Educators
While expanding access marks an important milestone, a parallel priority lies in building a comprehensive system that not only supports children’s success but also sustains a strong, stable educator workforce and fosters ongoing improvements in quality.
To meet this challenge, DEC is making significant investments in healthy early development and in supporting providers in recruiting, retaining, and nurturing a stable, well-supported workforce. These efforts recognize that children thrive when educators are given the resources and support they need to succeed. These investments are already yielding measurable results.
A Durable Blueprint for “Baby” Prop C Funds
DEC’s expansion plan is designed to remain adaptable and responsive as economic conditions evolve, with funding secured through 2032 to support steady, sustainable growth. Looking ahead, current projections indicate that the fund balance may fall below the established threshold between FY31 and FY33.
However, DEC is prepared to take thoughtful steps to ensure continued stability. These may include adjusting tuition support for families earning above 110% of the area median income, prioritizing the conversion and enhancement of existing spaces over new construction, limiting the number of available slots for workforce pathways and professional development, and postponing the launch of new or expanded initiatives until the budget is on firmer ground. By taking a measured approach and making strategic adjustments as needed, DEC can continue to serve children and families while safeguarding the program’s long-term financial health.
Families can’t count on stability if providers have to plan one year at a time or if educators are unsure about their pay. DEC’s next step is set up to reduce that uncertainty by adding long-term safeguards. This includes using part of the fund balance to expand ongoing services and setting clear reserve levels and spending rules to avoid sudden cuts if revenues decline.
To protect continuity for families and consistency, DEC’s financial plan includes a $60 million set-aside reserve to fulfill compensation commitments to early educators during tough economic times or budget changes.
What This Means for San Francisco Families
Delivering on “Baby” Prop C is really about making San Francisco a place where families can actually raise young children without constant financial pressure or having to figure things out on their own. With eligibility soon expanding to families earning up to 200% of the Area Median Income (after earlier expansions from 0–110% and then 110–150%), we’re finally reaching the full vision for access, while also making sure the system behind it stays strong. This includes continuing the investments that helped us get through the pandemic, adjusting to serve younger children as TK rolls out, and making sure we have a stable, qualified workforce by offering competitive pay and real opportunities for professional growth. By making child care more affordable, supporting educators, adding more developmental resources, and investing in the facilities and quality programs families count on, we’re building a funding plan that families, providers, and children can count on for the long term.