MSDE warns of childcare scholarship freeze as enrollment surges; advocates urge maintaining reimbursement and credential funding

The Division of Early Childhood and the Maryland State Department of Education told the Education and Economic Development Subcommittee that rapid growth in the childcare scholarship program has created a fiscal shortfall that requires short‑term cost containment, while advocates asked the committee to preserve program value and workforce credentialing investments.

DLS analysis and key numbers. Natalie Andrade of the Department of Legislative Services summarized fiscal 2026 proposals for the Division of Early Childhood and told the committee that childcare scholarship enrollment rose from 15,296 children in January 2021 to 42,478 in December 2024 — a 178 percent increase. DLS reported that total childcare scholarship payments rose substantially and that the fiscal 2026 allowance includes $495,000,000 for childcare scholarships. DLS said MSDE closed fiscal 2024 with a program deficit and anticipated continued shortfalls as enrollment growth outpaced federal and one‑time ARPA…