ACNJ Testimony before the Assembly Budget Committee on FY’2027 budget

TO:        Members of the Assembly Budget Committee

FROM:  Shaylynn Bivens, J.D., Senior Legislative Analyst,
Advocates for Children of New Jersey

DATE:   March 25, 2026

RE:       New Jersey FY'2027 Budget Impact on Children

On behalf of Advocates for Children of New Jersey (ACNJ), I write to express our appreciation for the Governor’s proposed restoration for the Child Care Assistance Program (CCAP) and to recognize the Legislature’s continued efforts to support the program through both funding and policy proposals aimed at expanding access for families and strengthening providers.

We respectfully urge the Legislature to build on this momentum by increasing the CCAP investment to $30 million. This additional funding is necessary to ensure the program can meet summer demand, prevent another freeze on enrollment, continue enrollment based payments to providers, and allow the state to implement prospective payments this fiscal year.

As you know, the program was recently forced to freeze new enrollments due to insufficient funding and remains only partially open, with access limited to priority populations. As a result, many working families are unable to secure child care, while providers face ongoing financial instability. Without additional investment, these challenges will persist, further limiting access and destabilizing the system.

Child care is an essential component of New Jersey’s economic infrastructure. It enables parents to work, supports businesses, and contributes to overall economic growth. However, years of underinvestment have led to repeated funding shortfalls and enrollment freezes, creating uncertainty for both families and providers, many of whom are small businesses.

A $30 million investment would provide critical short term stability by protecting enrollment based and prospective payments, maintaining quality based rates, supporting increased summer enrollment, and reducing the likelihood of future enrollment freezes. At the same time, we recognize that sustained, long term investments will be necessary to fully meet the needs of families and ensure system stability.

In addition, New Jersey’s current CCAP eligibility threshold, set at approximately 200 percent of the federal poverty level, does not reflect the state’s high cost of living. Consequently, many working families, including those earning minimum wage, are excluded from assistance despite facing unaffordable child care costs. These families, many of whom work in essential roles such as service industries, health care support, education, and gig or part time employment, are often forced to reduce work hours or leave the workforce entirely.

To better align with economic realities, we recommend increasing eligibility to 300 percent of the federal poverty level to expand access and support working families.

We also urge the Legislature to address the ongoing child care workforce shortage. Low compensation continues to drive staffing challenges, limiting provider capacity. ACNJ supports a $10 million pilot program for workforce wage supplements in child care deserts to stabilize staffing in high need areas and begin addressing these long standing issues.

Beyond child care, ACNJ appreciates the Governor’s recognition of the need for expanded mental health services for New Jersey students. The New Jersey Statewide Student Support Services (NJ4S) network has made significant progress since its launch. The 15 regional hubs have served more than 620 schools, with over half located in high need districts, and have reached more than one million students, caregivers, and school staff through prevention, early intervention, and community based supports. Additionally, more than 5,000 students have received clinical services.

Given these strong outcomes, we believe it is most effective to build upon the NJ4S infrastructure rather than introduce a new, separate program. Schools across the state continue to face a shortage of clinicians, and strengthening an existing statewide system will maximize impact and ensure continuity of care.

Finally, we highlight the importance of supporting fathers and families in improving maternal and child health outcomes. Research shows that father involvement is associated with earlier prenatal care, increased use of postnatal services, longer breastfeeding duration, reduced maternal depression, and improved child developmental outcomes.

To better understand and address fathers’ needs, the New Jersey Department of Health, in partnership with stakeholders, has developed the New Jersey Fatherhood Experiences Survey (NJFES), which is currently being piloted in select communities. An investment of $420,000 is needed to expand this effort statewide and ensure that fathers’ voices inform public health programming and policymaking.

Investments in child care, mental health, and family supports are critical to New Jersey’s economic future. Ensuring families have access to affordable care and services, and that providers have the stability to serve their communities, is essential for a strong and thriving state.

Thank you for your continued leadership and commitment to New Jersey’s children and families.