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President Obama in his 2013 State of the Union address called for making “high-quality preschool available to every child in America” and laid out a plan to invest in young children and support low-income working families.1 This plan proposed a joint federal-state partnership to provide high-quality public preschool for all four-year-old children from low-income families (which include poor families), as well as an increase in investments in Head Start programs and an expansion of early care and education programs for infants and toddlers.2 The President’s budget includes increased funding in fiscal year 2014 to expand and improve infant and toddler care and to increase child care subsidies to help low-income families pay for child care. In addition, the U.S. Department of Health and Human Services recently proposed new regulations to ensure children’s health and safety and improve the quality of child care among child care providers who accept child care subsidies for low-income families through Child Care and Development Fund (CCDF) funds.3 The high cost of child care is a barrier to employment among low-income families (those living at or below 200 percent of poverty) with young children.4 Child care subsidies are designed to support both parental employment and child development by lowering the cost of child care and making high-quality child care affordable to low-income families. High-quality child care promotes child development, as it provides children the opportunity to learn and develop the skills necessary to succeed in school and in life.5 Several studies have shown that low-income families who receive child care subsidies experience higher rates of employment than similar families who do not receive subsidies.6 Recipients of child care subsidies also experience fewer child care-related work disruptions, making it easier for them to maintain employment, and underscoring the value of child care subsidies.7 In the wake of the Great Recession and subsequent slow job growth and recovery, employment support for low-income families is increasingly important as families struggle to obtain and maintain work. Child care is particularly salient for rural families with young children because Key Findings

Child care subsidies critical for low-income families amid rising child care expenses