South Middlesex Times

Childcare costs in New Jersey are becoming a significant burden for working families, with some parents spending up to 30% of their income on care. A report by the Rutgers Center for Women and Work suggests that adopting federal income thresholds could extend childcare subsidies to an additional 200,000 children.

The Murphy Administration has invested $1 billion since 2018 to improve access to childcare. However, the report highlights that changing the state's income requirement for subsidies could further assist struggling families. Becky Logue-Conroy, a research analyst at the Rutgers Center for Women and Work, stated, “In New Jersey, a single mom with one child must earn less than $34,840 in order to qualify for subsidies. But if we adopted the federal rule, that same mom could earn up to $74,317 and still receive subsidies."

New Jersey currently sets its subsidy eligibility at 200% of the federal poverty level. Raising this threshold to 300%, as proposed in legislation S2241/A1920, would increase coverage from 17.7% to 29.2% of children under age 13. Adopting the federal rule allowing earnings up to 85% of the state’s median income would cover an additional 199,362 children.

Strict work and education requirements also limit access. Parents must work at least 30 hours weekly or be enrolled in school or job training programs meeting specific criteria. "New Jersey is one of only six states that require parents to work more than 25 hours per week," Logue-Conroy noted.

Despite federal recommendations that families spend no more than 7% of their income on childcare, many New Jersey families spend between 10% and 15%. Single mothers with preschoolers face even higher burdens without qualifying for assistance.

Debra Lancaster, executive director of the Rutgers Center for Women and Work, commented on these challenges: “Tens of thousands of New Jersey families are caught in the middle.”

The report indicates South Jersey counties like Atlantic and Cape May would benefit most from relaxed subsidy requirements. The First 1,000 Days Policy Coalition aims to support children during critical early development stages.