Karen Schulman, Senior Policy Analyst

by Karen Schulman, Senior Policy Analyst,
National Women’s Law Center    

by Karen Schulman, Senior Policy Analyst
National Women's Law Center

States will soon be receiving something that they have not seen in a long time: new federal funds for child care. The recently passed American Recovery and Reinvestment Act included $2 billion in additional funding for the Child Care and Development Block Grant. This presents states with a tremendous opportunity, but also a tremendous challenge. States are expected to get the money out quickly, so that it can start helping our economy as soon as possible, while at the same time keeping a careful eye on how the money is spent. States are asked to use the funds effectively and efficiently to address the most pressing needs, but without any assurances that the funds will be there in the future—making it essential that states spend the money now in a way that will enable them to make the case for future investments.

To assist states as they manage this difficult balancing act, the National Women’s Law Center and the Center for Law and Social Policy have collaborated on a memo and a conference call that offer guidance for states on implementing the child care provisions of the ARRA. 

The top priority for states in spending the economic recovery funds should be to assist more low-income families with child care costs. States with waiting lists should serve families on those waiting lists and states that are currently serving all eligible families should make more families eligible by raising their income eligibility limits. With these measures, states help parents afford the child care they need to work and reduce parents’ financial burdens during these difficult economic times.