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Oregon early-childcare subsidy doubles to 16,000 families; agency warns of possible budget shortfall
Summary
At a March 5 informational hearing on Senate Bill 5514, Department of Early Learning and Care leaders told lawmakers ERDC caseload has nearly doubled since 2022 but noted a growing wait list and budget scenarios that show possible shortfalls tied to provider rate increases and federal compliance changes.
SALEM, Ore. — Department of Early Learning and Care officials told the Joint Committee on Ways and Means subcommittee on Education on March 5 that the Employment Related Day Care (ERDC) subsidy has grown rapidly and now serves more than 16,000 families, but the program faces wait-list pressures and budget scenarios that could produce shortfalls in the next biennium.
DELC Director Alyssa Chatterjee and Early Learning Programs Director Dorothy Spence presented data and budget assumptions during an informational session on Senate Bill 5514. Chatterjee told the committee materials from the session will be posted to OLIS and that testimony may continue into the next day.
The growth and why it matters
Chatterjee and Spence said ERDC served nearly 9,000 families in December 2022 and, as of January 2025, serves more than 16,000 families covering over 26,000 children. The number of providers accepting ERDC grew from about 3,000 in 2022 to over 4,600 in January 2025. Spence said 75 percent of approved families are actively using their benefit; about 25 percent are “unconnected” — approved but not yet…
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