What If We Expanded Child Care Subsidies
in Arizona?
Child care is a critical family need, allowing parents to work while keeping childrensafe and supporting their healthy development. But quality child care is expensiveand difficult to find, particularly for low-income parents, who face additionalchallenges affording and finding care while they work.Child care subsidies from the Child Care and Development Fund (CCDF) can helplow-income families with children younger than age 13 (or older children withspecial needs) pay for child care, yet the current child care system offers subsidiesto only a fraction of eligible families. What if the system were funded so all Arizonafamilies with incomes below 150 percent of the federal poverty guidelines (FPG)who meet the other eligibility criteria and want a subsidy receive one?Using the Urban Institute’s Analysis of Transfers, Taxes, and Income Security(ATTIS) microsimulation tool, we estimate that in Arizona, an additional 20,600 families with incomes below 150 percent of FPG whoalready meet the other eligibility rules (e.g., are working or engaged in anotheractivity that qualifies for CCDF help) could receive a subsidy in an averagemonth; approximately 8,100 additional mothers would be able to join the workforcebecause they would get a subsidy; about 51,700 additional children could receive a subsidy in an average month,including those whose parents are already in eligible activities and those whoseparents would join the workforce; and these changes would raise incomes for many affected…