Facts In Action

A survey of state early childhood experts and state child care administrators conducted by the Children's Defense Fund (CDF) showed that state funding gaps have significantly impacted child care assistance programs and the low-income working families they are designed to help. Shrinking budgets have caused cutbacks in child care assistance programs, shutting out thousands of low-income families and making it more difficult for them to find and afford the quality care they need for their children.

States have adopted a number of strategies for managing the cuts to child care assistance. Many states have changed eligibility requirements so fewer families are eligible for child care help. Some states have lowered reimbursement rates for providers. In Massachusetts, the Office for Child Care Services has "frozen" the number of subsidized slots and vouchers available for eligible families.

Although limiting the number of families receiving subsidies and lowering reimbursement rates may reduce the cost of child care assistance, working families with relatively low incomes may be forced to turn to welfare if they can not afford the full cost of child care. In order to help more families pay for the quality child care they need in order to work and help their children succeed, CDF encourages Congress and the Administration to work together to enact legislation that reauthorizes Temporary Aid to Needy Families and the Child Care and Development Block Grant with an increase in child care funds.

Source:
Low-Income Families Bear the Burden of State Child Care Cutbacks, Children's Defense Fund, September 5, 2002.

For more information:
contact: Children's Defense Fund, 25 E Street NW, Washington, DC 20001, call (202) 628-8787, or look online at www.childrensdefense.org/pdf/cc_statecutsreport.pdf. Editor's note: See also: http://www.childrensdefense.org

Facts in Action, October 2002