Program Description: The purpose of the Child Care Subsidy Program is to assist eligible low- and moderate- income families with child care costs. The subsidy supports parents and guardians who work full-time, are full-time students, work part-time and attend school part-time, or are participating in job training programs.
Impact on the Safety Net: It is estimated that there may be as many as 31,500 children in the District who are eligible for subsidized child care, but due to funding limitations, subsidies are not available for all children who may need quality child care.[7] Parents who receive the child care subsidy are able to pursue work or the education and training needed to find work. Having a reliable source of quality child care support provides greater job security by increasing family stability and economic success.
Children who receive high-quality child care from an early age are more likely to be prepared for school, to graduate from high school, and to go on to college. They are much more likely to become productive members of society and are much less likely to become dependent on government assistance for long periods or to fall into the criminal justice system.
Investing in child care programs helps create jobs within the District. Teachers at subsidized centers are paid significantly less than those at private centers, often well below D.C.’s living wage, and their publicly subsidized centers restrict their ability to hire more credentialed staff or to offer educational opportunities and wage incentives to existing staff.[8] Without market rate reimbursement, child care providers that accept low-income subsidized families will never be able to reach the quality of centers that accept only private pay clients.
There are an estimated 3,000 full-time workers in the field of subsidized early care and education. Their wages come largely from public subsidies. The District should not only increase the number of child care subsides, but it should invest in quality child care programs helps to strengthen the workforce, which comprises predominantly low-income women of color. By making investments in programming and increasing subsidy rates, the District can help to ensure the overall quality and sustainability of the child care workforce, helping workers to attain higher levels of education, earn a higher level of compensation and create a long-term career.
Current Cost of Program: $74 million
Cuts from Program: $30 million (with inflation) over past 5 years
Amount Needed for Program: An additional $15 million
This increase will bring the subsidy program in line with the 2008 market rate for child care. In order to ensure compliance with the federal standard of “equal access,” the District must reimburse child care providers according to this rate, defined as the 75th percentile of the market. While there has been significant progress in increasing the number of slots for three- to four-year-olds in CPS and charter schools, community-based providers have been forced to close their doors, continuing to leave many families in jeopardy. Reimbursement rates in homes and center-based care have not been increased since 2004. Child care advocates understand that the District’s budget crisis is serious and that there are many programs in need of investment. But after years of decreasing funding, even as standards have improved, many community based-organizations serving subsidized families are on the verge of collapse especially in the city’s most vulnerable areas. Last year, OSSE officials estimated that even an investment of $15 million will help bring subsidy reimbursement rates for the infant and toddler age groups closer in line with the market rate, making quality child care more accessible to 9,000 of the 31,500 children who are eligible for, but currently not receiving, early care and education.
