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RICHMOND—Governor Ralph Northam today announced that an additional $203.6 million in federal stimulus funds and expanded eligibility criteria for the Child Care Subsidy Program will help further stabilize Virginia’s early childhood care and education system, provide child care assistance to additional families as they seek stable employment or return to work, and deliver critical operational and technical resources to new and returning child care providers.
First Lady Pamela Northam and House Speaker Eileen Filler-Corn celebrated the new investments during a virtual meeting of the Northam Administration’s Children’s Cabinet on Thursday. Video of the First Lady and Speaker at yesterday’s meeting is available here.
“Early educators have been diligent and dedicated to keeping children safe and meeting the needs of our youngest Virginians since the early days of this public health crisis,” said Governor Northam. “As we emerge from the pandemic, the strength of our recovery will depend upon our ability to help families return to the workforce and provide quality, affordable options for early childhood care and education. These additional investments will help address the challenges child care providers are facing and ensure we can continue to deliver critical resources to those most in need now and into the future.”
While nearly 90 percent of child care center programs have reopened, the COVID-19 pandemic has resulted in ongoing staffing challenges, revenue shortfalls, and increased operational costs for many providers. Through the additional funding, Virginia will continue to provide stabilization grants to sustain current providers and help closed providers re-open as well as retention bonuses and scholarships for child care educators. To support families and children in areas where there are few or no options, Virginia will also offer grants to help open new programs.
“I’m grateful to the legislators for their support of our littlest learners during another successful General Assembly session,” said First Lady Northam. “This funding will help our superhero educators continue to support Virginia’s most valuable asset—our children.”
The expansion of the Child Care Subsidy Program is a result of House Bill 2206, sponsored by Speaker Filler-Corn and recently signed into law by Governor Northam, which establishes a new short-term eligibility category for parents seeking financial assistance for child care while they are looking for employment and temporarily expands income eligibility guidelines for families with young children. The new income eligibility levels allow families with a household income of up to 85 percent of the state median income to apply if they have a child under age five, or not yet in kindergarten, to qualify. Funding for the new eligibility category comes from federal coronavirus relief funds dedicated to child care assistance that Virginia received through the December 2020 stimulus package.
“The COVID-19 pandemic has highlighted the immense value of quality, accessible child care for Virginia families,” said Speaker Filler-Corn. “These times have been incredibly hard on parents balancing the need to put food on the table while having to look after their children at home. I thank Governor Northam for signing this legislation which will help lighten the burden on many working families by making quality child care more affordable during this public health crisis. I am thankful to have received the bipartisan support of my colleagues in the House and Senate as we work to protect families and build the foundation for a better Virginia.”
The additional federal funding will support families and child care providers by enabling the Commonwealth to:
“We know that access to quality early childhood care and education has been a concern for many working families, even before the pandemic,” said S. Duke Storen, Commissioner of the Virginia Department of Social Services (VDSS). “Over the past year, enrollment in our Child Care Subsidy Program has declined by 32 percent, further demonstrating the financial burden families have continued to experience amidst the economic downturn caused by COVID-19. As Virginians return to school and work, we must not only ensure the available supply of child care to meet the increased demand, but also continue to make investments to maintain a strong child care system.”
VDSS, in partnership with the Virginia Department of Education, is working to operationalize the application process for expanded Child Care Subsidy Program eligibility. VDSS expects to be able to communicate additional program details and stabilization grant information to families and providers by mid-April.
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