Lorem ipsum dolor sit amet, consectetuer adipiscing elit, sed diam nonummy nibh euismod tincidunt. Learn More

Evidence of Impact for Child Care Subsidies

PRINT

Download PDF

Child care subsidies are one of the six most effective strategies that a state can implement to make sure children get off to a healthy start and thrive, and that promote greater equity in child wellbeing.

Child care subsidy programs provide financial assistance to help make child care more affordable for families with low incomes. States demonstrate leadership in child care subsidy policy by making policy choices to improve families’ access to child care through increasing reimbursement rates, reducing cost burdens on families, and covering a substantial portion of the true cost of providing child care.

The most rigorous research studies show that receipt of child care subsidy and greater state subsidy spending per child:

IMPACT OF CHILD CARE SUBSIDIES EVIDENCE OF IMPACT

Increases enrollment in formal child care settings

  • Higher state subsidy spending per low-income child (of $1,000) led to 86% higher odds of enrollment in a single center-based care arrangement, rather than multiple care arrangements

Increases maternal employment

  • A 10% increase in Child Care and Development Fund subsidy expenditures led to a 0.7% increase in mothers’ employment rate
  • $1,000 higher annual state subsidy spending per low-income child led to a 3.5 percentage point increase in the likelihood of maternal employment

Increases a family’s economic security

  • Subsidy receipt led to an increase in monthly earnings by 250%

Visit the Clearinghouse for the comprehensive evidence review on Child Care Subsidies.

The prenatal period to age 3 is the most sensitive and rapid period of growth for the brain and body. State policy choices have a substantial impact on the wellbeing of infants, toddlers, and their parents, and on promoting equity among children. See the Prenatal-to-3 State Policy Roadmap for more information on the most effective policies and strategies states can implement to help children thrive from the start.

Have questions? Please contact us.

Related

Kids sitting in a classroom

New Vanderbilt Study Finds Nashville Child Care System Faces Interconnected Challenges in Supply, Workforce, and Affordability

As families across the country navigate the pressures of finding and affording child care, new research from Vanderbilt University’s Prenatal-to-3 Policy Impact Center examines what that landscape looks like in greater Nashville, Tennessee Nashville, Tennessee
Set of kid toys on a white shelf

Brief 5: Estimating the True Cost of High-Quality Home-Based Care – Insights from True-Cost Modeling

Home-based child care plays a small but vital role in greater Davidson County, Tennessee, offering families flexibility, affordability, and culturally aligned care, particularly for infants and toddlers. This brief uses a cost estimation model to examine the true cost of providing high-quality home-based child care in the region, where providers often serve simultaneously as educator, owner, and director.
Home-based child care plays a small but vital role in greater Davidson County, Tennessee, offering families flexibility, affordability, and culturally aligned care, particularly for infants and toddlers. This brief uses a cost estimation model to examine the true cost of providing high-quality home-based child care in the region, where providers often serve simultaneously as educator, owner, and director.
Little boy playing with toy train.

Brief 4: What High-Quality Center-Based Child Care Really Costs, and Why No One is Paying It – Insights from True-Cost Modeling

The market price of child care reflects what families can afford to pay, not what it actually costs programs to provide high-quality care with a well-compensated workforce. This brief uses a cost estimation model to examine the true cost of providing center-based child care for children under age 5 across greater Davidson County, Tennessee.
The market price of child care reflects what families can afford to pay, not what it actually costs programs to provide high-quality care with a well-compensated workforce. This brief uses a cost estimation model to examine the true cost of providing center-based child care for children under age 5 across greater Davidson County, Tennessee.