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Legislative Updates

Governor Murphy Announces $700 Million in Child Care Investments

219th Legislative Session Economic Development Updates Legislative Updates
On October 13, Governor Phil Murphy announced his administration will utilize more than $700 million of American Rescue Plan funding allocated to Human Services to help parents pay for child care, provide bonus pay to child care workers, and distribute grants and increase support for child care providers.

The initiative will help eligible families by covering the additional amount they may owe for fees or the difference between what the state pays and the provider charges. This assistance began in September and is now extended to December 2023. These additional payments provide up to $300 for full-time care, or $150 for part-time care, per eligible child, per month on top of the child care assistance rate paid by the state on behalf of the family.

The initiative also waives co-payments in the state’s child care subsidy and implements financial incentives to increase the number of child care providers that offer non-traditional evening and weekend hours. 

Additionally, child care providers will be eligible for two new rounds of pandemic stabilization grants to help stabilize and sustain their operations. For licensed child care centers, grant availability will range from $20,000 to $80,000 in the first round, depending on the number of children they serve. The grants will be $2,000 for family child care providers.

Providers can use these dollars to support their operating expenses such as wages and benefits, rent and utilities, cleaning and sanitizing, facilities maintenance and improvements. Grants will also again be made available for summer youth camp providers in 2022 and 2023 to help cover COVID-related costs and assist families with paying for summer camp.  

To read the Governor's press release, click here.

Should you have any questions, please contact Hilary Chebra, Manager of Government Affairs at
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Hilary Chebra

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