$700M Invested Into NJ Child Care To Help Working Families

NEW JERSEY — When the pandemic hit, the importance of child care was highlighted more than ever as parents and providers both struggled with costs and accessibility.

"Child care is a game-changer not just in people's lives but in our economic recovery," said Gov. Phil Murphy.

Murphy announced Wednesday that New Jersey is investing nearly $700 million through the American Rescue Plan to make child care more affordable and accessible for working families.

"As we continue to manage and build back from the challenges of the pandemic child care remains a top priority to strengthening our economy and our workforce," said Acting Commissioner of NJ Department Of Human Services Sarah Adelman. "We know that affordable, reliable childcare is critical to our economic recovery especially for working mothers who have been disproportionately affected by the impact of the pandemic."

The funding will focus on three key areas:

1. Support children and families by reducing childcare costs and putting dollars back into the pockets of New Jersey families.
2. Supporting child care workers through higher wages and training
3. Supporting child care providers with grants for their ongoing operations, incentives to invest in quality and expand after-hours care.

"It’s money to help families afford it, money to the child care centers to make sure they are up and running… money to get workers to come back in and to be attracted to the industry to begin with," said Murphy. "It has to be that multipronged approach. If all you do is help the providers they may not have enough families to afford them or workers who can work there. If all you do is help the families then you may not have enough providers to deal with the supply of kids in families seeking that child care."

In order to tackle these goals, Adelman said the state will first work to reduce the direct cost of families participating in NJ's assistance program including waiving copayments and minimizing out-of-pocket costs through the end of 2023.

The number of child care providers offering nontraditional hours like nights and weekends care will also be increased.

The state will also help to recruit new child care employees and retain current child care staff by providing $1,000 bonus payments in December and again next summer. The bonuses are funded through the child care revitalization fund signed by Murphy.

"This will help providers recruit new workers and retain existing staff so they can serve more children," said Adelman.

Additionally, child care providers are eligible for two new rounds of pandemic stabilization grants. Licensed childcare centers are eligible for $20,000 to $80,000 in the first round and in-home providers are eligible for a $2,000 grant.

The grant money can be used to support operating expenses such as wages benefits, rent and utilities, and facility improvement and maintenance. Grants will be available in thecoming months with an informational webinar offered as well.

Grants will also be available for summer youth camp providers in 2022 and again in 2023.

"We know that quality child care is essential to child development and to economic recovery," said Adelman.

Prior to the pandemic, the Department of Human Services invested an additional $100 million to make child care more affordable and accessible. And during the pandemic, an additional $400 million was invested with coronavirus relief funding.

"With this announcement, we have invested more than $1 billion in child care over course of this administration — after more than a decade of no increases at all," said Adelman.

For more information on child care assistance for families and providers visit childcarenj.gov.

Have a news tip? Email alexis.tarrazi@patch.com.

Get Patch breaking news alerts sent right to your phone with our new app. Download here. Don't miss local and statewide announcements. Sign up for Patch alerts and daily newsletters