China, once known for its strict one-child policy, is now trying to fix its falling birth rate by offering financial help to families with young children. Since January 1, 2025, the government has been providing families with 3,600 yuan (about US $500) per year for every child under the age of three. The financial support continues annually until the child turns three. The goal is to reduce the financial burden of raising children and encourage more people to have kids. Fewer young Chinese are getting married or starting families due to the high cost of childcare, education, job insecurity, and a slowing economy.

The National Health Commission called this a major step to support families. However, some experts believe the money might not be enough to convince people to have more children. China’s population has been shrinking for three years in a row, partly because of its one-child policy (in place from 1980 to 2015) and the effects of urbanisation. In the past two years, different provinces in China have been giving childcare subsidies, but the amounts varied. This new national policy will be funded by the central government, not by local ones.

China’s new childcare subsidy: Key details

The new childcare subsidy in China will apply to families with children born on or after January 1, 2025. Children born before that date but still under the age of three will receive a smaller, prorated amount based on the months remaining until they turn three. Under this policy, families can receive up to 10,800 yuan per child over three years. 
The scheme is expected to benefit more than 20 million families every year. 

Importantly, the subsidy will not be taxed and will not count as income when calculating eligibility for other social welfare programs. Families can begin applying for the subsidy from late August 2025 through both online and offline channels.  While experts believe the subsidy may not lead to an immediate rise in the birth rate, they view it as a significant step toward supporting families financially and see it as a potential foundation for more family-focused policies in the future.