New Report Offers Bipartisan Solutions to State Child Care Woes

At a time of historically high levels of political polarization, it can be difficult to find examples of bipartisan cooperation on major questions of public policy. That’s why it immediately caught my attention when I came across a state legislative framework for child care recently released by the National Conference of State Legislatures (NCSL). 

NCSL brought together 13 state legislators from both major political parties for multiple meetings to come up with recommendations for other state legislators on the topic of child care policy. Many of those legislators came to the meetings with extensive experience with child care policymaking, with two being child care providers themselves. Of course, the legislators didn’t agree on every policy idea, but they were unified in their view that the current child care system is flawed and financially precarious. Ultimately, the legislators agreed to seven recommendations for strengthening state child care systems. Below is a bit more information about each recommendation as well as state policies that show how state legislatures have already put these ideas to work. The actions taken by the legislatures serve as an important reminder that, even during an era of partisan gridlock, there are incremental steps that can be taken that move the needle forward on child care policy.

Expand Access

It’s no secret that families across the country are often struggling to find and afford child care. The expiration of pandemic-era federal funds has led to long waitlists for child care assistance in many states, with over 400,000 children on waiting lists in the second half of 2025. Data from the Rapid Survey Project in 2025 highlight the troubles facing parents of all income levels when it comes to finding care: 74 percent of parents reported difficulties finding child care.

The report highlights a few actions some states have taken to improve both access and affordability. For example, beginning in December, Kentucky will produce a publicly available, monthly report of all licensed providers throughout the state to help parents gain a better understanding of child care availability and policymakers to understand what areas lack adequate care options. Other states are taking action to address the higher costs of infant and toddler care. Since 2016, Illinois has set aside 25 percent of its Early Childhood Block Grant to fund programs for children from birth to age three. And states are also getting more creative in finding ways to expand child care capacity by repurposing publicly owned facilities, such as former schools. Hawaii passed legislation in 2024 that requires its Department of Education to consider using closed school buildings as either child care centers or charter schools.

Address Affordability for Families

With the average cost of child care at more than $13,000 per year in 2025, it’s no surprise that many families are struggling to meet that expense. States have taken multiple actions recently to help give families a bit of financial breathing room. Some of this has taken the form of expanding the reach of child care subsidy programs. Massachusetts has expanded eligibility for child care assistance to include families earning up to 85 percent of state median income, while North Carolina sets aside four percent of child care funds for vulnerable populations, such as children with special needs and families experiencing homelessness. States have also adopted tax policies designed to reduce child care expenses, such as Oregon’s 2023 creation of a child tax credit of up to $1,000 for families with low incomes.

Invest in the Child Care Workforce

Child care workers have been underpaid for decades, with median pay in 2025 of only $16.82 per hour. Such low earnings, combined with poor or non-existent benefits mean that retention and recruitment are a perennial problem. A few states are taking action to meaningfully increase the compensation earned by the child care workforce. Washington, DC’s Pay Equity Fund has provided the workforce with direct wage supplements of up to $14,000, in addition to a program that offers free health insurance premiums for employees of licensed child care centers and homes. Kentucky and several other states are offering another incentive for the workforce: guaranteed child care assistance for early educators who have children of their own.

Modernize Licensing

Child care licensing is important because it’s the framework that states employ to ensure that providers meet minimum health and safety standards to keep children safe. But since providers often have to navigate multiple state and local oversight entities to maintain their licenses, states are increasingly taking action to streamline the oversight process. For example, Georgia has identified certain “core rules” that have the greatest impact on health and safety; an annual inspection reviews all regulations while a separate inspection focuses only on those core requirements. And Texas has attempted to streamline oversight by passing legislation that prohibits redundant fire or sanitary inspections by the state if a similar inspection has been recently conducted by local authorities.

Strengthen Small Child Care Businesses

While there are a few well-known national child care chains, the vast majority of programs are small businesses with fewer than 20 employees. More states are starting to help these small businesses by providing business and operational support. Wisconsin, for example, provides free bilingual, virtual access to business and financial resources for child care providers along with low-cost help with bookkeeping, billing, and financial tracking. Other states, such as Kentucky, provide programs with free child care management software to help with administrative tasks such as invoicing, waitlist tracking, and attendance monitoring. Additionally, with the rising cost of liability insurance posing an existential challenge for many providers, states are experimenting with ways to assist providers. Texas, for example, created a liability insurance pool to help providers access affordable coverage.

Fund Child Care for the Future

To expand the access and affordability of child care, more public funds will need to be invested, and states have taken different approaches to doing so. A growing number of states are rethinking how child care subsidy rates are set by moving away from market-based rate surveys and toward cost-estimation models that better reflect the true cost of providing care. At the national level, supporters are lining up behind the Child Care Modernization Act partly because it would require all states to calculate rates based on cost-estimation models, likely leading to higher rates for providers. Additionally, in order to raise much-needed funds, more states are establishing sustainable state revenue streams for child care. Last year, Connecticut established the Early Childhood Education Endowment Fund, a fund that should help expand access to early education throughout the state while continuing to grow from year to year. And, in 2023, Vermont established a 0.44 percent payroll tax to fund child care investments throughout the state.

Elevate State Early Childhood Governance and Leadership

Early childhood programs have generally been governed by multiple state agencies, sometimes requiring families to navigate a handful of different systems. A growing number of states are addressing this problem by consolidating early childhood programs into standalone departments. For example, Illinois recently launched the Department of Early Childhood to consolidate oversight and funding into a single agency while Colorado made a similar move in 2022. The goal of these changes is to consolidate authority, improve coordination, and ultimately make it easier for families to find the child care that best fits their unique needs.