Tag Archives: Government budget

Low Income Parents Lose Childcare Subsidies

Newly revamped childcare options at Hannam Vil...

Image by Morning Calm News via Flickr

Low-income working parents face a paradox. As they have to work longer hours, they are losing access to a government subsidy that helps pay for child care.

The subsidy, a mix of federal and state funds that reimburses child care providers for families, is critical to the lives of poor women. It has been eaten away over the years by inflation, growing need, and state budget cuts.

At least two states, Arizona and Utah, are no longer appropriating state general funds for child care at all.

According to a recent report, families in thirty-seven states were worse off this year than last year as waiting lists grew, co-payments rose, and eligibility tightened.

President Obama had recommended an increase in the subsidy in the 2011 budget, but it has not been approved by Congress. Stimulus money is now gone.

Advocates for poor women question whether the social contract that emerged during the 1990s welfare overhaul (women work in exchange for help with child care) is fraying.

Via The New York Times.

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