According to Chinese media, the subsidy will help about 20 million families cover childcare costs. The policy, announced on July 28, provides a maximum of 10,800 yuan ($1,500) per child.
China Central Television (CCTV) said that the policy will take effect at the beginning of 2025.
Families with children born between 2022 and 2024 can register to receive partial allowances.
The move is part of the Chinese government's efforts to boost the birth rate.
Several provinces in China have piloted some forms of payment to encourage people to have more children as the world's second largest economy faces the risk of a demographic crisis.
In March 2025, the northern Chinese city of Hohhot began providing up to 100,000 yuan ($14,000) in support for each baby for couples with at least 3 children.
Tham Duong City also provides about 500 yuan (70 USD) a month to families with a third child under 3 years old.
Last week, Beijing asked local governments to draft a plan for free preschool education.
According to research by the YuWa Population Research Institute, China is one of the countries with the most expensive average childcare costs in the world. The average cost of raising a child to 17 in China is $75,700.
Official figures show that as of 2024, China's population has declined for the third consecutive year.
China recorded 9.54 million births in 2024, a slight increase compared to 2023. However, the country's population continues to decline.
China's 1.4 billion people are also aging rapidly, raising concerns about demography.
