City childcare providers warn funding delays could keep classrooms from opening on time
Nick Kats, CEO of Little Scholars, said the delays have left programs scrambling to cover payroll, supplies and operational costs without the public dollars they rely on.
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Childcare providers across New York City say they are still waiting for critical funding from the city, money they say they need immediately to open their classrooms for the first day of school on Sept. 10.
Nick Kats, CEO of Little Scholars, which serves about 370 children in 3‑K and pre‑K across seven centers, said as a DOE provider, he typically receives 35% of their annual funding in August to prepare for the school year. As of Aug. 26, he said he has received none of it.
Kats said the delays have left programs scrambling to cover payroll, supplies and operational costs without the public dollars they rely on.
“The students may come in on Sept. 10 and not have ready classes for them,” Kats said.
Kats said his monthly receivable from the DOE is about $600,000, a number he says is impossible for providers to float without access to loans or credit.
“I obviously do not have that money in reserve, nor do I have any kind of access to credit cards or bank loans that can cover $600,000,” he said.
The DOE acknowledged the delays, calling them deeply concerning but not new, and said it is working to overhaul the contracting and payment system for more than 1,000 early‑childhood providers citywide.
“For too long, contracting and payment delays within the city’s school system were accepted as a given. Under Chancellor Samuels’ leadership, we are changing that. While we know this work takes time, an overhaul of this antiquated system has already begun, and we are taking steps to ensure that our providers receive future payments, contracts and resources they need on time.
In the immediate, New York City Public Schools is in the process of onboarding additional contracting capacity, prioritizing the registration of early childhood education contracts and ensuring every provider has the funding they need as they begin the school year, whether through a registered contract or interest-free loans. As we continue to expand, standardizing and expediting this process will be a priority – it’s what our families and providers deserve, and what we will deliver," the Department of Education said in a statement.
Mayor Zohran Mamdani said the administration is prioritizing the registration of early‑childhood contracts and is prepared to offer interest‑free bridge loans to providers who need immediate support.
“This is a top priority for our NYC Public School system,” Mamdani said. “We’re putting significant additional resources into registering these contracts and ensuring every provider is ready for the first day of school — whether that means their contracts are registered or they are provided with an interest‑free loan.”
Kats said he applied for a bridge loan on Aug. 3 and was told it would take seven to 10 days to process. He said he has not received an update on when it will be approved.
He added that many providers he speaks with are in similar situations, and some fear they will not have the money to open at all.
"A lot of them won’t have money to open in September,” Kats said. “They won’t survive the first payroll.”
The city comptroller’s office, which registers all city contracts, said it is still waiting on a large number of DOE submissions and is prepared to expedite reviews as soon as they arrive.
