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Child‑care assistance faces shortfall in governor’s FY26 proposal; department may pause new enrollments without $25–$30M more

New Jersey Assembly Budget and Appropriations Committee · May 7, 2025
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Summary

The department told the Assembly that the governor’s budget adds about $79.5M for child care but still leaves a $25–$30M gap; Commissioner Edelman said current enrollees would keep coverage but new enrollments could be paused and family co‑pays raised unless the Legislature restores funding.

Legislators pressed Department of Human Services officials about the governor’s proposed funding for the Child Care Assistance Program (CCAP). Commissioner Sarah Edelman said the budget provides an additional $79.5 million for child‑care subsidies but that, based on utilization trends, the department projects a shortfall of roughly $25–$30 million to meet demand in FY26.

Department answer and consequences: Edelman told the committee that with the current proposal families already enrolled would not lose benefits. However, without additional appropriations the department would need to pause new enrollments and increase family co‑payments, an outcome she said the department does not prefer.

Magnitude and likely impact: Department projections estimate 5,000–7,000 additional children might enroll next year if enrollment remains open; a pause would prevent those new enrollments. Lawmakers repeatedly urged prioritizing child care investments because of labor‑force and family impacts.

Legislative options: Edelman said the administration is willing to work with legislators to restore funding if the committee makes this a shared priority. Committee members signaled interest in further discussions during budget negotiations.

Speakers quoted: Commissioner Sarah Edelman and committee members who raised concerns about waiting lists and provider capacity.