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A5127
ASSEMBLY, No. 5127
STATE OF NEW JERSEY
222nd LEGISLATURE
�
INTRODUCED MAY 28, 2026
Sponsored by:
Assemblywoman� SHANIQUE SPEIGHT
District 29 (Essex and Hudson)
SYNOPSIS
���� Establishes child care stabilization and operation
grant program in DHS.
CURRENT VERSION OF TEXT
���� As introduced.
��
���� An Act
establishing a child care stabilization and
operation grant program in the Department of Human Services and supplementing
Title 30 of the Revised Statutes.
����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:
���� 1.� The Legislature finds and
declares that:
���� a.� In the wake of the
coronavirus 2019 (COVID-19) pandemic, declines in child care-industry
employment restricted the availability of child care, which strained families�
already costly access to care.� To remedy this problem, the Biden
Administration made a historic investment in the United States child care
industry by providing $24 billion in subsidies to child care providers.�
���� b.� The March 2021 enactment
of the American Rescue Plan (ARP) provided historic federal funding to the
child care industry. The $24 billion in subsidies to child care providers
helped to stabilize the industry during the COVID-19 pandemic, while also addressing
preexisting challenges in the market for child care.� The flexibility of the
funds helped providers stabilize their businesses in one of the most tumultuous
periods in recent history.
���� c.� In November 2023, the
Council of Economic Advisors (CEA) published a working paper that evaluated the
impact of the child care stabilization funds allocated by the ARP. The working
paper found that the child care stabilization funds accomplished their goal of
stabilizing the child care industry, resulting in increases in wages and
employment for child care workers, as well as increases in the labor force
participation rate and employment for mothers of young children.
���� d.� It is well established that
access to high-quality, affordable child care increases a state�s labor supply,
expands economic productive capacity, and supports the healthy development of
children and the financial well-being of working families.�
���� e.� As the State prepares to
implement the New Jersey Strategic Plan for Preschool Expansion, the continued
stability of the State�s child care industry and the fiscal impact that the
expansion of preschool will have on child care providers must be addressed.�
���� f.� Increasing the number of
preschool programs in the State� may lead to increased costs for child care
providers as such providers would be required to meet additional regulatory
standards.
���� g.� Additionally, the
transition of three- and four-year-olds from preschool and child care programs
to school-based care will affect the number of families accessing child care
services in the State, resulting in revenue losses for child care providers.
���� h.� Ensuring the stability of child
care infrastructure is important in expanding the State�s labor supply and
ensuing economic activity.� These facts underscore the need to treat the child
care industry like other forms of infrastructure that are supported by
governmental investment.� It is, therefore, in the best interest of the State
to establish a grant program to stabilize the State�s child care infrastructure,
provide financial support to child care providers, support the healthy
development of children, and reinforce the economic well-being of working
families in New Jersey.
���� 2.� a.� There is established
in the Department of Human Services a child care stabilization and operation
grant program to provide grants for operating expenses and workforce supports
for licensed child care and registered family day care providers that meet the
requirements of subsection c. of this section.
���� b.� To be eligible for
consideration for a grant award under this section, a licensed child care
provider or registered family day care provider shall submit an application to
the Department of Human Services, in a form and manner prescribed by the
department, outlining the purposes for which a grant award would be used.
���� c.� The Commissioner of Human
Services shall establish selection criteria for the awarding of one-time grants
under the program to a licensed child care or registered family day care home,
in an amount to be determined by the commissioner, based upon review of the
applications and the:
���� (1) child care center or
family day care provider�s capacity to legally serve children based on State
child care licensing or family day care registration requirements;
���� (2) number of families served
by the child care or family day care provider who are enrolled in the State�s
child care assistance program; and
���� (3) availability of infant and
toddler slots at the child care center or family day care home, as applicable.
���� d.� In awarding grants under
this section, the Department of Human Services shall give preference to
licensed child care and registered family day care providers that are:
���� (1) located in communities
identified as child care deserts with few or no options for high-quality child
care and have been affected by a significant number of child care facility or
family day care home closures;
���� (2) located in communities
with high percentages of low-income families and serving a significant
proportion of families eligible for the State�s child care assistance program;
and
���� (3) impacted by the State�s
expansion of universal preschool and the transition of three- and
four-year-olds from preschool and child care programs to school-based care,
resulting in substantial revenue loss.
���� 3.� a.� There is established
in the Department of Human Services a fund to be known as the �Child
Stabilization and Operation Program Fund.�� This fund shall be the repository
for monies appropriated pursuant to section 5 of this act and shall be used to
support the grant program established pursuant to section 2 of this act.
���� b.� The monies deposited in
the fund shall be distributed by the department to licensed child care and
registered family day care providers, who meet the eligibility requirements of
subsection c. of section 2 of this act, as grants that may be used to:
���� (1) pay rent or make mortgage
payments;
���� (2) purchase insurance and pay
premiums;
���� (3) pay for classroom
materials and supplies; and
���� (4) cover payroll, workforce
compensation, and transportation costs.
���� c.� The Department of Human
Services shall accept and approve the applications of licensed child care and
registered family day care providers for one-time grants from the fund, and
shall award the grants to child care or family day care providers in accordance
with section 2 of this act.
���� 4.� a.� The Commissioner Human
Services shall submit a report to the Governor, and to the Legislature pursuant
to section 2 of P.L.1991, c.164 (C.52:14-19.1), one year after the
establishment of the grant program established pursuant to this act and
annually thereafter.
���� b.� The report shall include,
but not be limited to, information on the number of grant applicants, the
number and amounts of grants awarded, the purposes for which grant funds were
used, and any recommendations concerning the continuation or expansion of the
grant program.
���� 5.� There is appropriated from
the General Fund and the New Jersey Economic Development Authority�s Child Care
Facilities Improvement Grant Program such amounts as may be necessary to
implement the provisions of this act and to establish the Child Stabilization
and Operation Program Fund, as determined by the Commissioner of Human Services
and subject to the approval of the Director of the Division of Budget and
Accounting in the Department of Treasury.
���� 6.� The Department of Human
Services, pursuant to the �Administrative Procedure Act,� P.L.1968, c.410
(C.52:14B-1 et seq.), shall adopt rules and regulations as may be necessary to
implement the provisions of this act.
���� 7.� This act shall take effect
on the first day of the sixth month next following the date of the enactment.
STATEMENT
���� This bill establishes a child care
stabilization and operation grant program in the Department of Human Services
(DHS) to provide grants for operating expenses and workforce supports for
licensed child care and registered family day care providers that meet the
requirements of the bill.
���� To be eligible for
consideration for a grant award, a licensed child care provider or registered
family day care provider is to submit an application to the DHS outlining the
purposes for which a grant award would be used.�
���� The Commissioner of Human
Services is to establish selection criteria for the awarding of one-time grants
under the program to a licensed child care or registered family day care provider,
based upon review of the applications and the requirements outlined in the
bill.
���� The bill also establishes the �Child
Stabilization and Operation Program Fund� which will be the repository for
monies appropriated to support the grant program.
���� The monies deposited in the
fund are to be distributed to eligible licensed child care or registered family
day care providers and may be used to:� (1) pay rent or make mortgage payments;
(2) purchase insurance and pay premiums; (3) pay for classroom materials and
supplies; and (4) cover payroll, workforce compensation, and transportation
costs.�
���� The DHS is to accept and
approve the applications for the one-time grants and award the grants to eligible
child care or family day care providers.
���� The bill also requires the:�
(1) Commissioner of DHS to submit an annual report to the Governor and the
Legislature that includes information delineated in the bill; and (2) appropriation
of funds from the General Fund and the New Jersey Economic Development
Authority�s Child Care Facilities Grant Program to effectuate the purposes of
the bill.