TRENTON, NJ – Amid a federal trend exposing fraud in state funded childcare systems in Minnesota, New York, Ohio, and other states, New Jersey is seeking to expand it childcare funding bill to cover for shortfalls created by the Trump administration.
A new bill introduced in the New Jersey Senate aims to restore full funding for the state’s child care subsidy program by increasing the Work First New Jersey Child Care appropriation by $28 million in the Fiscal Year 2026 state budget.
Sponsored by Senators Britnee N. Timberlake (D-Essex) and Angela V. McKnight (D-Hudson), the measure — Senate Bill 2724 — seeks to reverse recent funding shortfalls that forced the Department of Human Services to pause new child care assistance applications and raise family copayments last year. The legislation is co-sponsored by Senators Gordon Johnson, Shirley Turner, and John Burgess.
The appropriation would increase total funding for the Division of Family Development’s Income Maintenance Management line item from $616.7 million to $644.7 million. Specifically, the Work First New Jersey Child Care line item would rise from $565.8 million to $593.8 million, ensuring continued operation of the state’s child care subsidy program without enrollment freezes or higher family costs.
The bill mandates that the Commissioner of Human Services discontinue any pause in application processing and approve all eligible applicants under the same criteria that were in place as of June 30, 2025.
It also requires that family copayments for child care assistance return to their prior levels, which ranged from one to five percent of household income.
During FY2026 budget hearings, Human Services officials testified that the governor’s initial budget recommendation underfunded the subsidy program by roughly $25 to $30 million. As a result, the department halted new applications on August 1, 2025, and increased copayments for participating families. The bill’s sponsors say the additional $28 million appropriation fully closes that funding gap, following a $2 million adjustment already adopted in the state’s budget.
The measure also eliminates language in the FY2026 appropriations act that permitted the Department of Human Services to suspend new applications if funding proved insufficient. Instead, it requires the department to maintain open enrollment and uphold the existing eligibility and payment standards for low-income families.
According to the bill statement, the funding ensures that New Jersey’s child care assistance program — a vital support for working families — can continue uninterrupted and without added financial strain on parents.
Senate Bill 2724 would take effect immediately upon enactment, guaranteeing that the child care subsidy program resumes full operations and restores affordability for eligible families statewide.
Senate Bill 2724 increases funding for New Jersey’s child care subsidy program by $28 million to restore open enrollment and roll back higher copayments for low-income families.
