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S4002
SENATE, No. 4002
STATE OF NEW JERSEY
222nd LEGISLATURE
�
INTRODUCED MARCH 19, 2026
Sponsored by:
Senator� JOSEPH F. VITALE
District 19 (Middlesex)
SYNOPSIS
���� Requires DHS to develop incentives to encourage
private investment in child care deserts.
CURRENT VERSION OF TEXT
���� As introduced.
��
An Act
concerning financial incentives for private
investment in New Jersey�s child care deserts and supplementing P.L.2019,
c.426.
����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:
���� 1.��� As used in section 2 of
this act:
���� �Child care desert� means a
community or a geographic area in which demand for quality child care services
surpasses the available supply of such services, as determined by the
Commissioner of Human Services.
���� �Child care facility� means a
child care provider that is either licensed or registered with the State Office
of Licensing, or has been evaluated and approved by the Division of Family
Development in the Department of Human Services, to care for one or more
children for fewer than 24 hours of care per day.
���� �Child care subsidy program�
means the voucher program, jointly funded by the State and the federal
government, that helps eligible low-to-moderate income families afford
high-quality child care services.
���� 2.��� a.� Notwithstanding the
provisions of any other law to the contrary, the Commissioner of Human
Services, in coordination with the Commissioner of Community Affairs, the Chief
Executive Officer of the New Jersey Economic Development Authority, the Director
of the Division of Taxation in the Department of the Treasury and the
Commissioner of Children and Families, shall establish a program of financial
incentives to encourage private investment in child care facilities located in
the State�s identified child care deserts, provided that the program shall be
implemented no later than 90 days after the effective date of this act.
���� �b.�� The financial incentives
to be considered by the commissioner shall include, but shall not be limited
to:
���� (1)�� tax credits;
���� (2)�� tax exemptions;
���� (3)�� loan guarantees; and,
���� (4)�� assistance with
recruiting, hiring and training employees.
���� c.���� The commissioner shall
apply for such State plan amendments or waivers as may be necessary to
implement the program of financial incentives established pursuant to this
section and to continue to secure federal financial participation for
subsidized child care programs for qualified low-to-moderate income households.
���� 3.��� The Commissioner of
Human Services, pursuant to the �Administrative Procedure Act,� P.L.1968, c.410
(C.52:14B-1 et seq.), and in consultation with the Commissioner of Community
Affairs, the Chief Executive Officer of the New Jersey Economic Development Authority,
the State Treasurer, and the Commissioner of Children and Families, shall adopt
such rules and regulations as necessary to implement the provisions of this
act.
���� 4.��� This act shall take
effect take effect immediately.
STATEMENT
���� This bill requires the
Commissioner of Human Services to develop financial incentives, to be
implemented within 90 days of the effective date of this bill, to encourage
private investment in child care facilities located in New Jersey�s identified
child care deserts.� The bill defines a �child care desert� as a community or
geographic area in which the demand for quality child care services surpasses
the available supply of such services, as determined by the Commissioner of
Human Services.
���� The bill directs the
Commissioner of Human Services to develop the program of financial incentives
in conjunction with the Commissioner of Community Affairs, the Chief Executive
Officer of the New Jersey Economic Development Authority, the Director of the
Division of Taxation in the Department of the Treasury, and the Commissioner of
Children and Families.� Moreover, the commissioner is required to consider a
variety of potential incentives to encourage private investment in child care
facilities, including, but not limited to: tax credits, tax exemptions, loan
guarantees, and assistance with recruiting, hiring and training new employees.
���� The Commissioner of Human
Services is required to apply for any State plan amendments or federal waivers
needed to ensure continued federal financial participation for the State�s
subsidized child care program.� The provisions of this bill will take effect
immediately.
���� It is the intent of the bill�s
sponsors to employ financial incentives to increase the availability of
licensed child care facilities in the low-to-moderate income communities that
largely constitute New Jersey�s child care deserts.� Such a program could build
upon or be incorporated into existing programs, administered through the New
Jersey Economic Development Authority and the Department of Community Affairs,
to spur private investment in the State�s food deserts and Urban Enterprise
Zones.�
���� According to the Advocates for
Children of New Jersey (ACNJ), approximately 40 percent of New Jersey
municipalities are classified as child care deserts; of these, the majority are
urban or rural communities. The lack of quality child care options in the
State�s child care deserts has become particularly acute during the COVID-19
pandemic, as many child care providers face economic hardship due to reduced
student enrollment and higher operating costs associated with enhanced cleaning
protocols and mandated personal protective equipment for facility staff.� If
New Jersey�s economy is to re-open after the COVID-19 pandemic, the State�s
working families, many of whom are essential workers, need access to
affordable, high-quality child care options in their communities.