Zohran Mamdani, the Democratic nominee for New York City mayor, has unveiled an ambitious plan to offer free universal childcare to all children aged six weeks to five years, part of a sweeping progressive agenda dubbed “Zohranomics.”
Mamdani argues that skyrocketing childcare costs are pushing families out of the city. He cites data showing that children under six are departing at twice the rate of others, and that average childcare expenses in New York City range between $14,000 and $20,000 per year per child. Under his plan, every family with children under five would receive publicly funded care, combined with a “baby basket” distribution for newborns containing essentials like diapers, books, and nursing supplies—a scheme inspired by over 90 international programs and costing an estimated $20 million .
Mamdani insists the program will be financed by higher taxes on businesses and high earners. His proposal includes raising the corporate tax rate from New York State’s top rate of 7.25% to 11.5%, matching neighboring New Jersey, and implementing a 2% surcharge on incomes over \$1 million ([Wikipedia][3]). That tax mix is projected to yield around \$9.4 billion annually—sufficient, according to Mamdani, to cover \$6 billion in annual childcare costs and \$700 million for fare-free bus service.
But independent analyses warn the scheme may cost up to $9.6 billion annually when factoring in wage parity for caregivers—who Mamdani proposes to pay at levels on par with public school teachers—and the need to scale up infrastructure and staffing. Critics argue that removing fees could create waitlists and strain limited capacity, drawing parallels with price-controlled UK childcare markets.
Despite these concerns, Mamdani and liberal economists counter that universal care boosts labor force participation—particularly among women—and delivers long-term societal benefits by ensuring early childhood development.
The plan faces key hurdles: it requires approval from New York’s state legislature, and its fiscal sustainability depends on maintaining the city’s corporate and millionaire tax base amid concerns of potential outmigration.
Still, the platform is resonating. Supporters describe it as a crucial step toward reversing the city’s middle-class exodus and rebalancing economic opportunity.
“As childcare becomes a launching pad, not a hurdle, we keep families in New York,” Mamdani said during the campaign launch. “Affordable early education is essential to keeping our city diverse, vibrant and just.”
NYC Journals 