Families are abandoning employment and forfeiting salary increases in order to meet child care requirements
In New York City, the number of children receiving subsidies for child care has more than quadrupled over the past two years, rising from 9,000 in 2019 to 46,000 in 2021. This significant increase is part of a broader trend across the United States, where eligibility for child care subsidies varies significantly due to state-specific criteria and funding constraints.
Amy Lee Funes, a New York City-based child and family nonprofit employee, was one of the many families who benefited from this expansion. In 2019, she earned $35,000 a year and qualified for a child care subsidy. However, due to the Covid-19 pandemic, her subsidy was temporarily halted.
Under federal law, families with incomes up to 85% of the state median income (SMI) are eligible for child care subsidies. In 2019, New York's maximum income for a family of two for child care assistance was set at $33,820. However, states have the flexibility to set their own criteria within these federal guidelines.
Key factors influencing these variations include income thresholds, work or educational activity requirements, child age limits and special needs considerations, categorical eligibility, asset limits, and regional/local variation. For instance, some states, like Arizona, have phased income eligibility that may reach up to 165% of the federal poverty level for some families.
In response to the pandemic and growing demand for child care subsidies, some states have revised their programs to expand access. New York, Vermont, Louisiana, and New Mexico are among the states that have made changes to increase eligibility.
Recently, New York has increased its income eligibility limits for child care assistance, with families now eligible if they make up to 85 percent of the state median income (about $74,000 for a family of two). This expansion is in line with the federal rule requiring states to provide a gradual phase-out plan for families like Amy Lee Funes'.
However, not all families qualify for subsidies, even under the federal recommendation. According to the Center for Law and Social Policy, only a fraction of eligible families actually receive subsidies. Advocates are increasingly calling on states to use their own funds to help families who no longer qualify under federal standards.
In Amy Lee Funes' case, she was denied a child care subsidy because she made about $98 too much each month. This decision appeared to violate the 2014 federal rule. Ideally, advocates say they would like to see the eligibility limits to get into and stay in the program increased to the federal maximum, with state funding available to help families who no longer qualify under federal standards.
Each state has its own child care subsidy program for lower-income families, funded in large part by federal money. A lot depends on whether states devote some of their own money to supplement the federal allotment. Some states, like a handful in the U.S., are pouring their own funds into their child care programs in addition to money from the government.
As the demand for child care subsidies continues to grow, it is essential for states to address the variations in eligibility criteria and funding to ensure that more families like Amy Lee Funes' can access the support they need.
- The expansion of child care subsidies in New York, as well as in states like Vermont, Louisiana, and New Mexico, is a response to the growing demand for education-and-self-development resources amidst the pandemic.
- Despite the recent increase in New York's income eligibility limits for child care assistance, the Center for Law and Social Policy indicates that only a fraction of eligible families actually receive subsidies, highlighting the persistent issue of inequality in education finance.
- Innovation in child care subsidy programs, such as phasing income eligibility up to 165% of the federal poverty level as seen in Arizona, could potentially provide solutions for addressing the gaps in accessibility and address the general-news issue of inequalities in education.
