Alert: State Budget Shortfall Cuts Child Care Access For Thousands of Families

Posted on July 23, 2025

Child Care Budget Shortfall

ACT NOW

Thousands of New Jersey families will lose access to child care assistance due to a $30 million funding gap in the state budget.

$30M

State Budget Shortfall

Aug. 1

Changes Take Effect

6%

Higher Co-Payment Rate

New Applications Paused

You may have heard about the recent changes to New Jersey’s Child Care Assistance Program (CCAP), which is administered by the Department of Human Services, Division of Family Development (DFD), and distributes subsidies to providers through their local Child Care Resource and Referral (CCR&R) agency. This is the result of a $30 million state budget shortfall needed to fully fund the program.

These changes are disappointing but your voice still matters. While the state budget has been finalized, lawmakers need to hear how it’s hurting your business, your staff, and the families you support.

SPEAK OUT NOW! Your stories can spark change and shape future funding opportunities.

WHAT YOU CAN DO:

📞 Call or email your State Assemblymembers and Senators today and tell them how these changes affect your program and the families in your care.

View script to call your legislators

I'm [Your Name], director of [Center Name] in [Town], where we serve [X] children—[X]% are on subsidy. I am calling because recent CCAP changes are creating hardship for working families, parents in school, and jeopardizing stable child care in New Jersey.

I urge you to prioritize CCAP funding in any supplemental or future budget decisions.

Thank You.

📣 Encourage parents to speak up too. Volume and personal stories matter.

📝 ACNJ would like to hear about parents' and child care providers' experiences accessing the New Jersey Child Care Assistance program to understand the challenges they face and inform our advocacy efforts.

Key changes that will significantly impact both providers and families across New Jersey starting August 1, 2025:

Co-Payment Increases:

  • New co-payments will take effect for families starting August 1, 2025, at the time of redetermination.
  • Most full-time co-pays will be around 6% of a family's income, although actual amounts will vary.
    • Families under 100% FPL will continue to have no co-pay.

No Changes for:

    • Children from families receiving Work First New Jersey (WFNJ) cash assistance
    • Children involved in child protective services or post-adoption services

Application Closure:

  • DFD will pause new applications and additional child applications for CCAP starting 11:59 PM on July 31, 2025.
  • Applications received before the deadline will be processed, and payments for all active cases will continue.
  • The online portal (https://mynjhelps.gov/home) and state child care websites will be updated to reflect these changes (https://www.childcarenj.gov/).

THIS REDUCTION IN SERVICES IS A DIRECT RESULT OF INSUFFICIENT FUNDING IN THE STATE BUDGET

The final New Jersey state budget did not include the additional $30 million needed to fully fund the Child Care Assistance Program (CCAP) and continue accepting new families. While CCAP received an $80 million increase, this fell $30 million short of what was required to maintain open enrollment and serve additional children from existing families.

It is essential to note that this additional funding would have been allocated from the state budget, not federal sources.