Excerpts
- Low-income families without access to child care subsidies report disruptions in work and school and increases in unemployment and economic hardship.
- Families who receive child care subsidies report markedly better economic outcomes, including higher employment, increased work or school hours, and lower food and financial insecurity.
- Families without subsidy access report greater risks to their young children’s development, safety and early learning due to unstable or inadequate child care arrangements.
On Jan. 6, 2026, the federal government informed five states that their Child Care and Development Fund (CCDF) dollars—the primary mechanism states use to subsidize child care for low-income families—would be frozen while officials investigated alleged systemic fraud. The five states sued the administration over the roughly $10 billion in frozen social service funds, and, on Jan. 9, a judge ruled that the funds could not be blocked for at least 14 days while arguments are made in court. These events have drawn attention to the far-reaching consequences for children, families, and the economy when public investments in child care are abruptly cut off. Parents depend on these child care programs to work, and young children benefit from high-quality early care experiences.
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Most families waiting for a subsidy reported serious disruptions to their ability to work or attend school. For instance, nearly half of respondents (47%) indicated that at least one adult in their household had left a job altogether due to child care constraints.
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The families who received a subsidy were faring substantially better economically. Unemployment was half as common among families who received a subsidy. Among families still on the waitlist, 40% reported that at least one adult was unemployed and actively looking for work, compared to 20% among families with a subsidy. Nearly two-thirds of families who received subsidies reported increasing work or school hours, starting a new job, or accepting a promotion or new position as a result.
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Children’s well-being is poorer in families without subsidy access
Parents on the waitlist also described how the lack of a subsidy was impacting their young children. Half of these families reported they had no care for their child (not even from a relative or friend), and many expressed concerns about the negative effects on their child. One shared, “My son is turning 2 years old and is not yet talking or interacting with other children. Without access to affordable, quality care, he is missing vital opportunities for socialization and early learning that could support his development.”
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Limiting access to child care subsidies carries significant risk for family and children well-being
Denying eligible families subsidies is a policy choice. The federal government is attempting to fully freeze funding in five states. Around the country, most states already ration access to subsidies.
Although our study did not test the causal relationship between subsidy access and family outcomes, the survey responses illustrate the hardships families face when child care is out of reach. The responses also suggest that access to subsidies can substantially ease economic strain for parents and improve children’s experiences.
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