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

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

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.

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

Access to high-quality child care is essential for a family’s active workforce participation and children’s healthy development. Child care is not just a service—it is crucial infrastructure that supports economic stability and growth both for
Child care subsidies provide essential financial support to make child care more affordable, assisting families as they navigate the challenges of balancing work, education, and training. Child care subsidies are one of 12 evidence-based policies
With most legislatures adjourned for the year, we recap the 2024 action on state policies to support children and families. So far this year, lawmakers throughout the country debated—and many passed—legislation that aligns with four key components of the prenatal-to-3 system of care.
Though most legislative sessions have adjourned, lawmakers and advocates across the country continue to advance efforts to support children and families. A lot can happen at the tail end of a legislative session, as Colorado
Bipartisan momentum has advanced tax credit proposals across the country, a historic debate over Medicaid expansion continues in Mississippi, and several states made progress in the past month to provide doula services through Medicaid. By
In late February, the federal government released a final rule that makes regulatory changes to the Child Care and Development Fund. The rule requires action from many states to ensure child care is affordable and