New York Governor Kathy Hochul signed legislation Wednesday that requires local social service districts to offer a direct deposit payment option for subsidized child care. A measure that will modernize and streamline the social services payment system for child care providers.
The legislation requires the Office of Children and Family Services to issue these new regulations within one year of the law being signed.
Under the current system, many child care providers receive paper checks from their local social service districts as payment for care provided to children who qualify for a subsidy. Printing and mailing paper checks unnecessarily increases the time it takes to process payments to vendors, putting financial pressure on those who may already be living check to check.
Direct deposit payments will remove this barrier to timely payment and remove an administrative burden allowing child providers to focus on providing high-quality early care for New York’s children.
“Child care is key to our economic recovery from this pandemic, and this measure will accelerate the delivery of funds to child care providers and alleviate financial stress caused by potential delays in receiving subsidy payments,” said Governor Hochul . “We cannot have a full economic recovery without boosting child care, and this legislation is another step in a series of bold initiatives that I am leading to shore up child care programs across the state and make quality child care affordable. be available to all parents who need. “
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