Critical childcare funding in New Jersey expires in August

EAST ORANGE, New Jersey (PIX11) -- Millions of dollars in childcare funding just expired at midnight on Aug. 1, impacting tens of thousands of families across New Jersey. 

The state is no longer accepting applications from daycare subsidy vouchers through the NJ Child Care Assistance Program (CCAP). CCAP received enough money in the 2026 state budget to continue funding existing clients but did not receive the $30 million needed to keep the program open for new applicants. Existing clients will also likely be faced with higher co-pays. 

The lack of funding has a direct impact on Monique Davis of Orange, who is just days away from giving birth to her second child. Her first child, a two-year-old girl, attends daycare, thanks to a monthly subsidy from CCAP. Davis expected to receive the same subsidy for her second child, but that is no longer a possibility. 

"I am a teacher, and without this subsidy, I don't know if I'll be able to really afford my child going here," said Davis, referring to her current daycare, Zadie's Early Childhood Center in East Orange. 

"Essentially, those parents will have to decide whether they're going to stay home with their children, pay the high cost of childcare, or leave the workforce altogether," said Cindy Shields, senior policy advocate at Advocates for Children of New Jersey. "I've also heard stories of parents asking if they can be induced before the deadline so they can apply. The stories are unreal. They're really unreal." 

The cuts are also expected to create problems for providers, who are bracing for lost revenue. 

"As a director, I'm trying to figure out where future enrollment is going to come from," said Chelsy Smith, the senior director of Zadie's Early Childhood Center. "Does that mean as a business we're going to have to make cutbacks? Does that mean layoffs?"

"Having children not being able to enroll - especially those in infant and toddler spots - are going to close classrooms, eliminate teaching jobs, and eventually for some programs, it's really going to force them into a conversation about whether they can sustain to remain open," said Meghan Tavormina, director of public policy and advocacy at the New Jersey Association for the Education of Young Children.