Child Care Subsidies - Prenatal-to-3 Policy Impact Center

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Child Care Subsidies

Child Care Subsidies

Child care subsidy programs provide financial assistance to make care more affordable for families with low incomes. Subsidy programs aim to support parent participation in work and education and support the supply and enrollment of children in high-quality care—and subsequently improve child development. Both federal and state governments contribute funding, but states administer the programs.

Featured Resources

2025 Roadmap Profile: Child Care Subsidies

Child care subsidies increase access to needed services including the use of single, formal care arrangements, support maternal employment, and increase earnings.

Evidence Review: Child Care Subsidies

States have considerable flexibility in setting rules on program policies and administration (e.g., eligibility requirements, application procedures, family copayment levels, and provider policies), resulting in substantial state variation in subsidy policy.

State Policy Lever Checklist: Child Care Subsidies

This checklist covers the following policy levers states may consider to increase access and affordability of child care subsidies: eligibility requirement, provider reimbursement, family contribution, and funding.

Related Resources

State Policy Progress on Child Care Subsidies in 2025

High-quality and reliable child care is a vital resource for families and communities, often determining parents’ ability to work or pursue education or training—all avenues that could help them provide for their families. However, the

How Do State Policy Choices Impact Family Resources?

The Policy Impact Calculator compares the level of resources available to a full-time working family across states. This interactive tool offers a self-guided tour of the substantial variation in state policy choices for working families

Child Care: From Market Failure to Strategic Investment

High-quality child care is an essential service that benefits children, families, and the economy. However, rising costs and fragmented workforce structures are contributing to an overall market failure. Many families are finding reliable care to

State Policies to Promote Employer-Supported Child Care

Research suggests that the high cost of child care can lead many parents to limit their participation in the workforce, resulting in negative repercussions for families and the economy. Though increased public investment is needed

Approaches to Improving Early Educators’ Compensation

Early educators remain among the most underpaid workers in the nation despite playing a critical role in child development and enabling workforce participation for parents. Across the country, the median wage for early educators is

A Tale of Two States: The Impact of State Policy Choices on Family Resources

Since the release of our 2020 Prenatal-to-3 State Policy Roadmap, every state has increased their investment in at least one effective Roadmap policy, but the choices they have made vary considerably. The distinct choices that