TRENTON, N.J. – New Jersey families and small business owners are expressing concern after learning the state’s child care subsidy program stopped accepting new applicants as of Aug. 1 due to a $30 million budget shortfall.
Assemblywoman Aura Dunn, a member of the Assembly Children, Families and Food Security Committee, hosted a Child Care Town Hall at the Morristown Neighborhood House on Wednesday night in partnership with the Advocates for Children of New Jersey. Families and providers shared how rising copays and lack of funding could impact them.
She heard from parents who said copays, which in some cases have risen to as much as 6% of a family’s income, would strain already tight budgets. Providers warned that staff layoffs and business closures could follow if the funding gap is not resolved.
“This program is a lifeline for working parents who need safe, reliable care so they can stay on the job, train for better opportunities, and support their families. It is also vital for the providers who care for our children every day and for the small businesses that depend on a stable workforce,” Dunn (R-Morris) said. “I see firsthand the difficult choices families are making when it comes to affording care. At the same time, I see a state budget that finds over a billion dollars for pet projects—while critical programs like child care are left fighting for scraps. That is backwards.”
The New Jersey Child Care Assistance Program provides subsidies for nearly 70,000 children in low-income families, with costs totaling $872 million in state and federal funds. Despite pleas from lawmakers and the public, the program was not fully funded this year. The Department of Human Services, which oversees the program, has said “additional funding is not anticipated for the foreseeable future.”
Families must meet income and work requirements to qualify. For example, a family of four cannot exceed a gross income of $64,300, and total family assets cannot exceed $1 million. Subsidies are available for children up to age 13, or up to 19 if the child is mentally or physically handicapped.
According to recent statistics, New Jersey families may spend up to 19.6% of their income on infant care. In Morris County, the cost for one child from birth through kindergarten averages more than $92,000, nearly double the national average.
Dunn, who has sponsored multiple bills addressing child care challenges, pledged to keep pushing for solutions.
“I have worked across the aisle to fight for families, whether it is pushing to make child care subsidies more stable, supporting the expansion of the child tax credit, or demanding answers when programs fall short,” Dunn said. “I promise to keep New Jersey families’ voices at the center of my work in Trenton.”
