SMLR Info

PISCATAWAY, N.J. – Child care is becoming increasingly unaffordable for working families in New Jersey, forcing some parents to spend 20% to 30% of their income. Others have quit their job or dropped to part-time to stay home with their children.

The Murphy Administration has invested $1 billion to improve child care access since 2018, and new research reveals an area where the state could make an even bigger impact. A report by the Rutgers Center for Women and Work, a member of the First 1,000 Days Policy Coalition, reveals that changing the income requirement for child care subsidies would help tens of thousands of working parents who are struggling to make ends meet.

“In New Jersey, a single mom with one child must earn less than $34,840 in order to qualify for subsidies,” said Becky Logue-Conroy, a Research Analyst at the Rutgers Center for Women and Work and one of the report’s authors. “But if we adopted the federal rule, that same mom could earn up to $74,317 and still receive subsidies. In a state where single moms spend nearly a third of their income on child care, that’s an enormous difference.”

As part of the Child Care and Development Block Grant, states receive federal funding to help low-income working families pay for child care, and each state has the flexibility to determine its own income threshold and work or education requirements. Despite having the third-highest cost of living, New Jersey is stricter than most states when it comes to awarding subsidies.

The researchers analyzed federal data to estimate how many children are covered now and how many more would be covered if New Jersey changed the requirements. They found:

• 17.7% of children under age 13 live in a household that qualifies for child care subsidies based on the current income threshold, which is set at 200% of the federal poverty level. That’s a total of 156,236 children statewide.
• 29.2% of children under age 13 would qualify if the state raised the threshold to 300% of the federal poverty level, as proposed in recent legislation (S2241/A1920). This change would cover an additional 102,287 children.
• 40.2% of children under age 13 would qualify if the state adopted the federal rule, which allows parents to earn up to 85% of their state’s median income. This would cover an additional 199,362 children.

In addition to having a higher income threshold, New Jersey is also an outlier with its strict work and education requirements. Parents must be working at least 30 hours per week, or enrolled in school for at least 12 credits, or enrolled in job training for at least 20 hours per week, in order to qualify for child care subsidies.

“New Jersey is one of only six states that require parents to work more than 25 hours per week,” Logue-Conroy said. “Part-time workers and those with unstable schedules, such as fast food and retail workers, may have a hard time meeting the work requirement on a weekly basis. And most parents can only meet the education requirement if they are taking college courses. GED classes and ESL classes do not count under New Jersey’s current rules.”

Though the federal government recommends that families spend no more than 7% of their annual income on child care, New Jersey families typically spend 10 to 15% for center-based care of infants and toddlers in most counties. The burden is even higher for some parents. Single moms with preschoolers struggle the most, spending 20% to 30% of their income on child care. Yet, many do not qualify for subsidies.

“Tens of thousands of New Jersey families are caught in the middle,” said Debra Lancaster, Executive Director of the Rutgers Center for Women and Work. “They don’t make enough money to be able to afford child care without significant financial hardship, but under the state’s current rules, they make too much money to qualify for assistance.”

The report finds that South Jersey would see the biggest benefits if the state loosened the requirements for child care subsidies, with thousands of low-income families in Atlantic, Cape May, Cumberland, and Salem counties potentially receiving assistance. Warren County, in North Jersey, is also high on the list.

Anchored by the Rutgers Center for Women and Work, the First 1,000 Days Policy Coalition is focused on supporting New Jersey’s children and families during the crucial time between pregnancy and a child’s second birthday. Research shows this is the most determinative period in their cognitive, socioemotional, and physical development.

Coalition members and supporters said today’s report highlights a critical part of the child care story in New Jersey that doesn’t get enough attention.

Meghan Tavormina, Director of Policy and Advocacy for the New Jersey Association for the Education of Young Children said, “Investments that yield high quality, accessible, and affordable early learning for New Jersey's children is a smart economic strategy. Expanding access to child care subsidies puts more children in care and increases the number of families that enter and remain in the workforce, driving productivity and economic growth. We support expanding the eligibility of child care subsidies, because increased access to child care is a critical driver of long-term economic prosperity.”

Winifred Smith-Jenkins, Director of Early Learning at Advocates for Children of New Jersey, said, “Families across New Jersey are struggling with the rising cost of child care. Increasing eligibility for subsidies must be coupled with State funding to support the expansion. As New Jerseyans, we must prioritize child care and commit to making the sustainable investments needed to make child care truly affordable for families and to ensure that those most in need continue to get the necessary assistance.”

Trina Scordo, MSW, Executive Director of NJ Communities United, a community organizing group that recently hosted a Day of Action for Child Care in Trenton, said, “New Jersey has the resources to expand child care subsidies. The question is one of priorities. If legislators refuse to adopt an equitable tax structure where millionaires and billionaires pay their fair share, this isn’t just a budget issue, it’s a moral failing. Our families and child care workers deserve a system that prioritizes their needs over the excesses of the wealthy.”

Shanita Hargrove, Vice President of Early Childhood for CWA Local 1037, a union representing in-home child care providers and child care center workers, said, “For years, providers have subsidized care out of their own pockets by lowering rates for families who earn too much to qualify for assistance but still struggle to afford care. The recently proposed legislation would finally shift the burden to the state, where it belongs, lifting it off low-income child care workers. It’s a critical step toward valuing both families and the workforce that supports them.”

Maura Collinsgru, Director of Policy and Advocacy for New Jersey Citizen Action, said, “As we see our social safety net under attack in Washington, and the possibility of families having to bear more costs as a result, it’s more important than ever to invest in the child care infrastructure so that parents have affordable and reliable options. Reaching more families through New Jersey’s child care assistance program by expanding eligibility is a step in the right direction.” 

About Us

The Rutgers School of Management and Labor Relations (SMLR) is the world’s leading source of expertise on managing and representing workers, designing effective organizations, and building strong employment relationships. 

SMLR’s Center for Women and Work (CWW) engages in research, education, and programming that promotes economic and social equity for women workers, their families, and communities.

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