NJ Spotlight: NJ’s Child Care ‘Crisis’ Demands More Funding as Needs Grow

May 13, 2025 — As New Jersey’s Legislature debates the state’s $58 billion budget proposal, advocates warn that child care remains in crisis — with funding still falling short of what’s needed to support working families across the state.

Governor Phil Murphy’s proposed budget would provide subsidies for roughly 70,000 children to attend licensed child-care programs. But experts, including Winifred Smith-Jenkins of Advocates for Children of New Jersey, say that won’t meet the growing demand. Without additional investment, thousands of low-income families could be forced to choose between keeping their jobs and caring for their children.

The state has dramatically expanded child-care funding since the pandemic, increasing subsidies from $318 million in 2019 to $872 million in the coming fiscal year. Much of that growth was fueled by temporary federal relief dollars that have now expired. Advocates say the system remains stretched thin, with limited capacity — particularly for infants and toddlers — and wages too low to sustain the workforce.

Commissioner Sarah Adelman of the Department of Human Services told lawmakers that another $25 million to $30 million is needed to fully fund the subsidy program, which serves children up to age 13. Without it, the department may need to pause new enrollments and increase family co-pays.

Lawmakers have until June 30 to finalize the budget. As Smith-Jenkins told legislators, “Full funding means we protect access to care and invest in a system that is stable, equitable, and essential for our shared future.”

Read More: NJ Spotlight News: NJ’s Child Care ‘Crisis’ Needs More Funding as Needs Grow