Massachusetts reopens child care assistance to reduce 32,000-child waitlist using funds from luxury tax surge

Massachusetts is resuming access to child care financial aid for income-eligible families, backed by $31.2 million from a tax on high earners, aiming to ease a significant waitlist and stabilise early education providers.

Massachusetts is set to reopen access to child care financial assistance for income-eligible families for the first time since April 2024, in a move officials say will ease a waitlist that has grown to roughly 32,000 children. The state’s Department of Early Education and Care will use $31.2 million in new money to add vouchers and contracted places, with enough funding to support about 2,100 children, according to officials who spoke at an Advisory Council on Early Education and Care meeting on Thursday.

Deputy Commissioner of Family Access and Engagement Tyreese Nicolas said the money is coming from the state’s 4% surtax on residents earning more than $1 million a year. She called the reopening a significant step for families that have been unable to secure aid while access was paused for two-and-a-half years. Nicolas said the new funds will not eliminate the backlog, but will let the agency begin admitting families from the waitlist again.

The state’s child care assistance system relies on both federal and state money, with funding split 49-51, according to the Department of Early Education and Care. Under the programme, vouchers allow families to choose a provider, while contracted seats give centres a guaranteed payment for a child referred through the programme. Nicolas said the two-track approach is meant to widen access for families while also giving providers more predictable occupancy and helping stabilise the workforce.

The largest share of the new spending, $20.5 million, will go to vouchers, including $12.5 million for the general waitlist and $8 million for the children of early education and care staff. Another $10.7 million will support contracted seats. State officials said there are just under 39,000 children in the income-eligible programme overall, and certain groups, including families experiencing homelessness or domestic violence, parents under 25, children with disabilities, families with incomes at or below 50% of the state median income, and children of child care workers, are prioritised on the waitlist.

Families referred through the Department of Transitional Assistance or the Department of Children and Families remain guaranteed access under state law and were not affected by the pause. Massachusetts says families can apply through the MyChildCareMA portal, by phone or through local Child Care Resource and Referral agencies, with eligibility based on income, household size and service needs.