Tokyo Tackles Rising Costs With Free Childcare for Kids Under 5

If you’ve ever stared at the price of childcare in America and thought, ‘how is anyone supposed to afford this?’, you’re far from alone. For many would-be parents, the staggering costs of daycare—often rivaling or exceeding college tuition costs or mortgage payments—can feel like an insurmountable barrier. And for those who already have children, the financial strain can make adding to their family seem out of reach.

Tokyo is trying to change that story. In a groundbreaking move to address Japan’s record-low birth rate, the city recently announced plans to make childcare completely free for kids up to 5 years old starting in September 2025. That means parents of little ones—whether first-borns or the baby of the family—won’t have to pay for daycare services.

“Japan is facing the crisis of a declining number of children, which isn’t going away,” Tokyo Governor Yuriko Koike said as she announced the plan. “There is no time to spare.”

This initiative represents the culmination of a series of incremental steps that Tokyo has taken toward universal free childcare. Previously, children aged three to five were already covered, while families with a second child received free care for kids under two. The new policy expands these benefits to include all children, ages zero to five, regardless of income or family size. By making care accessible to everyone, Tokyo aims to remove the financial stress that often deters families from having children or forces them to limit their family size.

And it’s not just about the money. Tokyo has been rolling out additional family-friendly policies, including the option for city employees to work a four-day week starting next year and a “childcare parental leave” policy that would allow certain employees to reduce their working hours by two hours a day. Together, these initiatives aim to create a more supportive environment for parents.

These changes signal a proactive approach to creating a more supportive environment for families—one that could inspire cities and countries worldwide to rethink how they tackle similar challenges. In the U.S., for instance, the cost of daycare averages over $18,000 per year per child—forcing many parents to make the difficult choice between staying home or returning to work. Implementing free national childcare or offering more flexible work solutions could empower more parents to rejoin the workforce—expanding opportunities for families, strengthening businesses and boosting the economy.

Now that’s a win-win.