Government regulation, not market failure, causes high child care costs in New York
Source: J.D. Tuccille. "Mamdani is wrong about child care costs. Regulation is the real culprit.." February 11, 2026. reason.com
The Gist
The author argues that child care is expensive in New York because the government has too many rules and regulations that make it hard for child care providers to operate. Instead of adding more government programs, politicians should remove these burdensome regulations to let the free market bring costs down naturally.
Conclusion
High child care costs in New York are primarily caused by excessive government regulation, not market failure, and should be addressed through deregulation rather than government programs
Premises
- New York is the second-worst state for burdensome child care regulations according to the 2026 State Childcare Regulations Index
- States with the least regulatory burden (Idaho, South Carolina, Arizona, Alabama, Florida) have significantly lower child care costs than heavily regulated states
- In heavily regulated states, child care consumes a greater percentage of average family income compared to less regulated states
- Government regulations create barriers to entry, limit supply, raise prices, and slow innovation in the child care market
- Mayor Mamdani and Gov. Hochul are proposing government subsidies and programs instead of addressing the root regulatory causes
Assumptions
- Market forces naturally drive down costs and improve services when regulatory barriers are removed
- The correlation between regulation levels and costs demonstrates causation
- Private child care providers are inherently more efficient than government-run programs
- Reducing regulations will not compromise child safety or care quality
- Government intervention typically makes problems worse rather than better