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Presented By | Child Care Scholarship Program Ways and Means Committee, Child Care Scholarship Briefing Maryland State Department of Education February 4, 2026
Child Care Scholarship Program Briefing 02.04.2026 2 The number of children and families receiving Child Care Scholarships (CCS) more than doubled between 2022 and 2025. Source: MSDE internal data systems, accessed 1/26/2026. 18,882 41,148 12,057 27,235 0 10,000 20,000 30,000 40,000 50,000 60,000 Number of Children and Families Children Families
Child Care Scholarship Program Briefing 02.04.2026 3 The number of child care providers participating in CCS has increased. 2,522 3,025 3,276 3,430 3,565 2,000 2,200 2,400 2,600 2,800 3,000 3,200 3,400 3,600 3,800 4,000 Jul-22 Sep-22 Nov-22 Jan-23 Mar-23 May-23 Jul-23 Sep-23 Nov-23 Jan-24 Mar-24 May-24 Jul-24 Sep-24 Nov-24 Jan-25 Mar-25 May-25 Jul-25 Sep-25 Nov-25 Jan-26 Number of Providers Enrolled in CCS Number of Providers Enrolled in CCS
Child Care Scholarship Program Briefing 02.04.2026 4 Key Changes to CCS to Support Families and Providers. State Median Income What is State Median Income (SMI)? SMI varies based on household size and is used to determine CCS eligibility. For example, a household of four (2 adults and 2 children) has an SMI of $154,117. At 75% of SMI, the income threshold for CCS eligibility for that family is $115,587. Federal Poverty Guidelines and State Median Income Estimates for FY26 https://acf.gov/sites/default/files/documents/ocs/COMM_LIHEAP_IM2025- 02_SMIStateTable_Att4.pdf Income Eligibility Thresholds as a Percent of State Median Income (SMI) Provider Payment Rate as a Percentile of Market Rate for Child Care 2017 50% of SMI 9 percentile Current 75% of SMI 75 percentile
Child Care Scholarship Program Briefing 02.04.2026 5 Who is exempt from the CCS Waitlist? Children receiving TCA, SSI, and siblings of children with existing CCS cases. 589 Children from families receiving Temporary Cash Assistance (TCA) and Supplemental Security Income (SSI) have received scholarships since the partial freeze began in May. 1,724 Children who are siblings of children with existing CCS cases have been awarded scholarships since the partial freeze began in May. Source: Internal MSDE data as 01/27/2026. Note: The data are not mutually exclusive; children can potentially be enrolled in both TCA, SSI, and be a sibling of a child with an existing case simultaneously.
Child Care Scholarship Program Briefing 02.04.2026 6 MSDE Strategic Plan Goals 1 Every child has access to a high- quality early childhood program. PILLAR 1: EARLY CHILDHOOD EDUCATION 2 Every school has high-quality and diverse teachers and leaders. PILLAR 2: HIGH-QUALITY & DIVERSE TEACHERS AND LEADERS 3 Every student graduates high school college and career ready. PILLAR 3: COLLEGE AND CAREER READINESS 4 Every student is matched with the resources they need to ensure their success. PILLAR 4: MORE RESOURCES FOR STUDENT SUCCESS 5 Every school and district receives a rating of ___ or higher. PILLAR 5: GOVERNANCE AND ACCOUNTABILITY strategicplan.marylandpublicschools.org Visit the Maryland State Department of Education website to learn more about the Strategic Plan! strategicplan.marylandpublicschools.org
Child Care Scholarship Program Briefing 02.04.2026 7 Enrollment in Pre-K Continues to Grow School Year Private Pre-K Enrollment Public Pre-K Enrollment Total Pre-K (Public and Private) 2018-2019 514 30,941 31,455 2019-2020 927 32,182 33,109 2020-2021 1,456 23,609 25,065 2021-2022 1,504 27,757 29,261 2022-2023 1,277 30,716 31,993 2023-2024 1,460 31,379 32,839 2024-2025 1,919 32,084 34,003 2025-2026 2,529 30,538 33,067
Child Care Scholarship Program Briefing 02.04.2026 8 Preschool Development Grant (PDG) Birth through Five Division of Early Childhood (DEC) awarded a one-year $14.75 million grant to spend in 2026 to update Maryland’s early childhood needs assessment, strategic plan, and to advance a number of priorities, including: Align fragmented elements into a unified system • Align ECE workforce advancement pathways. • Develop a centralized Pre-K enrollment system. • Expand Maryland EXCELS Find a Program tool - integrate publicly funded Pre-K programs. Expand program availability and sustainability • Transform CCRCs into regional Shared Services and Resource Hubs that connect to licensing and quality supports. • Redesign Maryland EXCELS to emphasize instructional quality using CLASS and LENA Grow. • Integrate HQIM into EXCELS and Pre-K through a curriculum review. Align and share information and data systems • Modernize Maryland’s Criminal Justice Information System to enable child care background check portability. •Modernize child care licensing systems. • Develop real- time dashboard of child care supply and demand.
Child Care Scholarship Program Briefing 02.04.2026 9 CCS enrollment increased rapidly in the first half of 2025 before declining due to the partial enrollment freeze. Source: MSDE internal data systems, accessed 1/26/2026 42,502 47,731 41,148 28,807 31,873 27,235 20,000 25,000 30,000 35,000 40,000 45,000 50,000 Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Number of Children and Families Children Families
Child Care Scholarship Program Briefing 02.04.2026 10 New CCS applications peaked the week before the enrollment freeze went into effect. Source: MSDE internal data systems, accessed 1/26/2026. Note: Total new applications include fast track applications and full applications. There may be some applications counted in both fast track and full applications; therefore, the numbers shown in this graphic represent a high-end estimate of total applications.
Child Care Scholarship Program Briefing 02.04.2026 11 More than 2,000 children have received scholarships since the freeze went into effect. Most of those children are siblings of children with existing cases. Scholarships issued since freeze Scholarships to siblings Percentage Total 2,344 -- Scholarships to siblings since freeze 1,724 74% • Out of the 2,344 new scholarships issued since the freeze in May, 1,724 (or 74%) were issued to children who were siblings of children with existing cases. • Note: These data are not mutually exclusive; children can potentially be enrolled in both TCA, SSI, and be a sibling of a child with an existing case simultaneously.
Child Care Scholarship Program Briefing 02.04.2026 12 All children receiving TCA and SSI have received new scholarships since the freeze went into effect. Scholarships issued since freeze Number Percentage Total 2,344 -- Temporary Cash Assistance (TCA) 539 30% Social Security Insurance (SSI) 50 1% Data as of 01/27/2026. • Of the 2,344 new scholarships issued since the freeze in May, 539 (or 30%) were issued to children who receive Temporary Cash Assistance (TCA). • Of the 2,344 new scholarships issued since the freeze in May, 50 (or 1%) were issued to children who receive Supplemental Security Income (SSI). • Note: These data are not mutually exclusive; children can potentially be enrolled in both TCA and SSI programs simultaneously.
Child Care Scholarship Program Briefing 02.04.2026 13 CCS is reaching low-income families. The majority of children receiving CCS and currently on the CCS waitlist have family income below 60% of SMI. Source: MSDE internal data systems, accessed 1/26/2026, reflects January 2026 data. 37,845 3,292 Children receiving CCS by SMI Children under 60% SMI Children At/Above 60% SMI 4,531 515 Children on CCS Waitlist by SMI Children under 60% SMI Children At/Above 60% SMI
Child Care Scholarship Program Briefing 02.04.2026 14 The number of children on the waitlist has steadily climbed since the freeze went into effect. 4,929 0 1000 2000 3000 4000 5000 6000 5/19/2025 6/19/2025 7/19/2025 8/19/2025 9/19/2025 10/19/2025 11/19/2025 12/19/2025 1/19/202 Number of Children on the CCS Waitlist
Child Care Scholarship Program Briefing 02.04.2026 15 Estimated Cost of CCS Expansion + $166.5 million per year To serve approximately 50,000 children per year – closer to the number of children enrolled at last summer’s peak enrollment Estimates based on internal analysis. Significant investment of new resources would be required to completely end the CCS waitlist. + $68 million per year To award scholarships to all of the approximately 5,000 children who are currently on the CCS waitlist.
Child Care Scholarship Program Briefing 02.04.2026 16 MSDE is monitoring potential Federal policy changes. We are considering our payment practices in light potential changes to Child Care and Development Fund (CCDF) regulations and based on provider input (CCS Tiger Team). Cap on family copayments • CCDF 2024 Final Rule requires states to limit family copayment to 7% • CCDF 2025 NPRM proposes to repeal that requirement • CCS copayments are already well below that threshold • No change needed Prospective payment • CCDF 2024 Final Rule requires provider payments to made in advance or at beginning of service delivery • CCDF 2025 NPRM proposes to repeal this requirement • CCS uses a form of prospective pay • Possible change needed if HHS prohibits this practice Enrollment-based payment • CCDF 2024 final rule requires states to pay based on enrollment – not attendance • CCDF 2025 NPRM proposes to repeal this requirement • CCS pays based on enrollment and requires attendance verification for program integrity • Possible change needed if HHS prohibits this practice Program Integrity
Child Care Scholarship Program Briefing 02.04.2026 17 MSDE’s Division of Early Childhood Envisions an Early Childhood System Where: All children enter kindergarten ready for success in school as a result of increased access to high-quality, mixed-delivery early childhood education (ECE). Families can easily learn about, apply for, and access the ECE and resources they need for their children. Providers are supported to operate stable, high-quality ECE programs with an effective and prepared educator workforce. Maryland’s economy benefits from thriving families who are supported to work, raise children, and participate in their community.
Child Care Scholarship Program Briefing 02.04.2026 18 Child Care Scholarship Additional Background Information
Child Care Scholarship Program Briefing 02.04.2026 19 Child Care Scholarship Key CCS Policies
Child Care Scholarship Program Briefing 02.04.2026 20 Key Policies What is the State Median Income (SMI)? • The state median income (SMI) is the midpoint of all household incomes in Maryland. This means that half of all households have income above the median income, and half have income below the median income. • The Child Care Scholarship (CCS) Program uses SMI to determine eligibility for program services. SMI is generally thought of as a better indicator for economic vulnerability than the Federal Poverty Guidelines when comparing incomes within a state because it takes the state’s cost of living and other economic factors into account. • SMI varies based on household size. • The SMI for a household with 1 adult and 1 child (2 people) is $101,489. • The SMI for a household with 2 adults and 2 children (4 people) is $149,249. • The CCS Program uses the SMI estimates published by the Administration for Children and Families for use in Federal Fiscal Year 2025. Income eligibility thresholds at initial application are set at 75% of SMI. Families may continue to receive CCS benefits if their income increases if it remains below the federal maximum of 85% of SMI.
Child Care Scholarship Program Briefing 02.04.2026 21 Key Policies CCS Program Income Eligibility Thresholds (at Initial Application) Fiscal Year Income Eligibility Thresholds as a Percent of State Median Income Household income equivalent, for a family of 4 2016 50% $54,631 2017 50% $55,019 2018 50% $55,839 2019 65% of 2018 SMI $75,590 2020 65% of 2018 SMI $75,590 2021 65% of 2018 SMI $75,590 2022 65% of 2018 SMI $75,590 2023 75% of 2021 SMI $93,605 2024 75% of 2021 SMI $93,605 2025 75% of 2025 SMI $115,588 2026 75% of 2025 SMI $115,588
Child Care Scholarship Program Briefing 02.04.2026 22 Key Policies What is the Market Rate? What Is a Market Rate Survey? • The Market Rate is measure of what child care providers are charging for child care. • It is a measure of what families are willing to pay for child care. • It is not a measure of the true cost of providing child care. • States are required by the CCDF Final Rule to ensure that families receiving child care assistance have equal access to comparable care purchased by private-paying parents. A market rate survey (MRS) is a tool States use to achieve this program objective. • A MRS is a study of the prices or fees child care programs typically charge, and families typically pay for a given type of child care based on: • Setting (e.g., center-based child care programs or family/home-based child care programs, etc.) • Age group (e.g., infants and toddler, school age, etc.) • Unit of care (e.g., per week, full-day, half-day, or hour, etc.) Office of Child Care, Child Care Technical Assistance Network, Institute for Social Research, Bipartisan Policy Center
Child Care Scholarship Program Briefing 02.04.2026 23 Fast Track Applications Presumptive eligibility was encouraged, but not required, under the 2024 CCDF Final Rule. Maryland implemented presumptive eligibility, as fast track applications, for the CCS program in 2023, prior to the 2024 Final Rule going into effect. 50,000 Fast track applications submitted since the policy went into effect in 2023. 22% Of families that submitted fast track applications went on to receive a full 2- year scholarship. Source: Analysis of CCS Applications data, obtained 9/12/2025.
Child Care Scholarship Program Briefing 02.04.2026 24 Child Care Scholarship Data and Trends
Child Care Scholarship Program Briefing 02.04.2026 25 Data and Trends The number of licensed providers in Maryland has declined over time. Number of Licensed Providers Family Child Care Large Family Child Care Child Care Centers Letter of Compliance Total November 2025 3,892 179 2,426 191 6,688 July 2016 6,357 103 2,500 218 9,178 9,178 6,688 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Jul-21 Oct-21 Jan-22 Apr-22 Jul-22 Oct-22 Jan-23 Apr-23 Jul-23 Oct-23 Jan-24 Apr-24 Jul-24 Oct-24 Jan-25 Apr-25 Jul-25 Oct-25 Provider Count
Child Care Scholarship Program Briefing 02.04.2026 26 Data and Trends The capacity of licensed providers has increased for all providers except small family child care homes. Type of Care Capacity July 2016 Share of Capacity July 2016 Capacity July 2025 Share of Capacity July 2025 Change in Capacity July 2016- July 2025 Licensed Child Care Center 158,342 71.4% 162,052 77.4% + 2.3% Letter of Compliance 13,827 6.2% 15,181 7.3% + 2.3% Small Family Child Care Home 48,356 21.8% 30,094 14.4% - 37.8% Large Family Child Care Home 1,183 0.5% 2,060 1.0% + 74.1% Total 221,708 100% 209,387 100% - 8.3% Source: Analysis of Active Providers by County Data, accessed on 10/5/2025 from https://earlychildhood.marylandpublicschools.org/data
Child Care Scholarship Program Briefing 02.04.2026 27 Data and Trends Breakdown of Children Enrolled in CCS by Age Age Breakdown Number Percentage Under 3 years of age 10,302 25% Ages 3 to 5 years old 12,183 30% 5 years old and older 18,652 45% Total 41,137 100% Source: MSDE internal data systems, accessed 1/26/2026. Note: Data from December 2025. • 1 in 4 children enrolled in CCS are under 3 years old. • Almost half of children receiving CCS are school-aged children. • 30% of children enrolled in CCS are between 3-5 years old.
Child Care Scholarship Program Briefing 02.04.2026 28 Data and Trends Demographic Data of Children Enrolled in CCS Race Number Percent American Indian or Alaskan Native 580 1% Asian 975 2% Black or African American 31,426 77% Native Hawaiian or Pacific Islander 270 1% White 10,445 26% Pulled from MSDE CCS data base on 1/26/26, reflect January 2026. Ethnicity Number Percent Hispanic or Latino 4,424 11% Non - Hispanic or Latino 35,825 88% No Response 548 1%
Child Care Scholarship Program Briefing 02.04.2026 29 Data and Trends Demographic Data of Children Enrolled in CCS Source: MSDE CCS database, accessed 1/26/26, reflects January 2026 Race by Age Group Infant/ Toddler Number Infant/ Toddler Percentage Ages 2 to 5 Number Ages 2 to 5 Percentage School Age (5 years+) Number School Age (5 Years+) Percentage American Indian or Alaskan Native 66 0.2% 231 0.6% 283 0.7% Asian 92 0.2% 432 1.1% 451 1.1% Black or African American 3,682 9.0% 13,474 33.0% 14,273 35.5% Native Hawaiian or Pacific Islander 24 0.1% 123 0.3% 123 0.3% White 1,201 2.9% 4,142 10.2% 5,102 12.5%
Child Care Scholarship Program Briefing 02.04.2026 30 Demographic Data of Children Enrolled in CCS Source: MSDE CCS database, accessed 1/26/26, reflects January 2026 Ethnicity by Age Group Infant/ Toddler Number Infant/ Toddler Percentage Ages 2 to 5 Number Ages 2 to 5 Percentage School Age (5 years+) Number School Age (5 Years+) Percentage Hispanic or Latino 505 1.2% 1,864 4.6% 2,055 5.0% Non-Hispanic or Latino 4,179 10.2% 15,122 37.1% 16,524 40.5% No Response 76 0.2% 229 0.6% 243 0.6%
Child Care Scholarship Program Briefing 02.04.2026 31 Data and Trends Geographic distribution of children served by CCS Source: MSDE CCS database, accessed 1/26/26. County Number of Children Served By CCS Percent of Children Served By CCS Allegany County 261 11.5% Anne Arundel County 2,260 100.0% Baltimore City 6,333 280.2% Baltimore County 8,605 380.8% Calvert County 314 13.9% Caroline County 155 6.9% Carroll County 516 22.8% Cecil County 545 24.1% Charles County 1,540 68.1% Dorchester County 258 11.4% Frederick County 1,085 48.0% Garrett County 86 3.8% Harford County 1,387 61.4% County Number of Children Served By CCS Percent of Children Served By CCS Howard County 1,598 70.7% Kent County 65 2.9% Montgomery County 6,429 284.5% Prince George's County 6,804 301.1% Queen Anne's County 146 6.5% Saint Mary's County 406 18.0% Somerset County 198 8.8% Talbot County 192 8.5% Washington County 795 35.2% Wicomico County 968 42.8% Worcester County 202 8.9%
Child Care Scholarship Program Briefing 02.04.2026 32 Data and Trends Maryland EXCELS Participation: Licensed Providers Total Participation Participation by Provider Type Licensed providers participating in EXCELS statewide Of licensed programs participate in EXCELS Of all licensed Child Care Centers participate Of registered Family Child Care Homes and Large Family Child Care Homes participate
4,823
72%
84%
65% There are 6,666 licensed or registered child care programs in Maryland.
Child Care Scholarship Program Briefing 02.04.2026 33 Data and Trends Maryland EXCELS Participation Statewide CCS Participation Bonuses distributed in FY25, equaling $6,642,800. Of rated programs have a quality rating of 3, 4, or 5. Programs participating in CCS and Maryland EXCELS. Of rated programs participating in CCS have a quality rating of 3, 4, or 5.
1,772
41%
3,392
39% CCS providers are required to participate in Maryland EXCELS
Child Care Scholarship Program Briefing 02.04.2026 34 Data and Trends Household income of children served by CCS Source: MSDE CCS database, accessed 1/26/2026 Jurisdiction 0 to 10% SMI 10% to 20% SMI 20% to 30% SMI 30% to 40% SMI 40% to 50% SMI 50% to 60% SMI 60% to 70% SMI 70% to 80% SMI 80% SMI and Higher Allegany County DSS 41 30 40 53 51 20 12 12 0 Anne Arundel County DSS 246 229 450 430 433 263 137 54 1 Baltimore City DSS 942 700 1,408 1,288 933 651 250 110 1 Baltimore County DSS 958 894 1,640 1,805 1,454 1,090 445 241 5 Calvert County DSS 16 39 53 71 47 52 22 17 1 Caroline County DSS 9 21 36 45 19 10 12 3 0 Carroll County DSS 27 53 116 97 99 60 41 17 1 Cecil County DSS 52 53 124 127 93 61 20 21 1 Charles County DSS 93 156 320 358 273 190 82 54 0 Dorchester County DSS 43 28 54 62 38 17 5 8 0 Frederick County DSS 95 97 238 211 179 142 73 29 0 Garrett County DSS 4 7 11 8 22 13 11 6 0 Harford County DSS 209 113 305 259 260 131 61 51 0 Howard County DSS 187 139 275 330 287 225 85 56 0 Kent County DSS 2 10 14 19 7 6 0 3 0 Montgomery County DSS 545 735 1,271 1,310 1,031 822 394 244 0 Prince George's County DSS 581 742 1,351 1,368 1,236 884 399 180 0 Queen Anne's County DSS 7 17 22 40 25 11 14 4 0 Saint Mary's County DSS 36 45 105 93 51 43 21 9 0 Somerset County DSS 20 37 54 42 24 18 2 1 0 Talbot County DSS 18 17 40 48 31 22 7 5 0 Washington County DSS 62 89 157 182 125 98 47 29 0 Wicomico County DSS 110 120 229 245 119 88 31 30 0 Worcester County DSS 21 21 46 39 34 20 16 3 0
Child Care Scholarship Program Briefing 02.04.2026 35 Division of Early Childhood Early Childhood Education Programs
Child Care Scholarship Program Briefing 02.04.2026 36 Early Childhood Education Programs Patty Center Family Support Programs Patty Center Family Support Programs provide multi-generational services for families with children birth to three (most centers up to age five). Services contribute to: • Improving parenting skills • Developing the family as a functioning unit • Promoting growth and development of young children State funding in FY 2026: $9,608,315 Where: Throughout the state Reach: In FY26 provide services in Allegany, Anne Arundel, Baltimore City, Baltimore County, Carroll, Charles, Frederick, Howard, Kent, Montgomery, Prince George’s, Queen Anne’s, Washington, and Worcester counties Supports for Patty Centers: Maryland Family Network (MFN) serves as intermediary and provides program management, fiscal monitoring, training, technical assistance, and evaluation of programs.
Child Care Scholarship Program Briefing 02.04.2026 37 Reach: • In the 2024-2025 school year, Judy Center Early Learning Hubs directly served 6,170 children across 86 fully operational sites. • For children to be considered served, they must engage directly with the Judy Center Early Learning Hub at least 12 times during the grant year. Early Childhood Education Programs Judy Center Early Learning Hubs Judy Center Early Learning Hubs are comprehensive hubs where families can engage in early learning experiences with their children from prenatal stages through age 5 and access support services. Using a multigenerational approach, Judy Center Early Hubs focus on family support and child development to help whole families thrive. State funding in FY 2026: $33,330,000 Where: Located at elementary schools across the state. How: Staff connect families with developmental screenings, learning activities, parenting classes, child development information, adult education, and more.
Child Care Scholarship Program Briefing 02.04.2026 38 Early Childhood Education Programs Growing Opportunities for Family Child Care (GOFCC) GOFCC aims to increase the supply and ensure the sustainability of family child care providers in areas with above-average rates of poverty and unemployment, or areas with a lack of available child care providers. State funding in FY 2026: $450,000 How GOFCC supports child care: • Administered by the Maryland Child Care Resource Network • Selected child care resource centers (CCRCs) provide business coaching to providers • Provides “start–up assistance” (funding) for starting a family child care program, including the cost of materials, curriculum, and renovations. Reach: • FY23-FY24: 5 CCRCs participated in GOFCC and 172 participants opened licensed programs providing over 700 child care spaces statewide. • FY25: 5 CCRCs participated in GOFCC and 63 participants opened licensed programs providing 437 child care spaces statewide.
Child Care Scholarship Program Briefing 02.04.2026 39 Early Childhood Education Programs Child Care Credential The Child Care Credential recognizes individual child care providers who increase their qualifications beyond the requirements of state licensing and registration regulations and CCS provider requirements. The program temporarily ended in FY 2025 and is currently being reestablished through an MOU with the University of Maryland. State funding in FY 2026: $5.7 million About the child care credential: • Offers recognition of achievement based on a provider’s professional development or education, years of experience, and professional activities across 6 staff credential levels, and 4 administrator levels. • Providers are eligible to receive financial assistance for ongoing professional development through training reimbursement and training vouchers. Vouchers and reimbursements: • Training reimbursements are issued upon completion of a training when an individual submits evidence of successful completion to MSDE. • Vouchers are issued before a training takes place, and can be used to attend conferences or complete training or coursework at community colleges.
Child Care Scholarship Program Briefing 02.04.2026 40 Early Childhood Education Programs Child Care Career and Professional Development Fund (CCCPDF) CCCPDF is a tuition assistance program designed to help eligible child care providers to earn a college degree towards a degree in early childhood or related field from an accredited college or university approved under the fund. State funding in FY 2026: $3 million Eligibility requirements: • Currently an early educator • Have one year of documented experience working with groups of children in an approved setting • Maryland Child Care Credential of at least a level 2 • Acceptance by an accredited college or university Registered Apprenticeships: CCCPDF also supports a Registered Apprenticeship Program at Hartford Community College where students can earn on-the-job training in early childhood while completing coursework and preparing for the CDA.
Child Care is IMPORTANT! The Early Years Matter!
Child Care is the workforce behind the workforce. Child Care is ESSENTIAL to the Economy, Children, Families, and Communities!
Child Care is Early Childhood Education $1 INVESTED IN EARLY CHILDHOOD YIELDS A $16 RETURN INCREASED • High School Graduation • College Matriculation • Economic Development & Personal Income DECREASED • Special Education/Remediation • Dependence on Social Welfare • Crime-related Costs & Incarceration Rates
Child Care Matters! Child Care is Infrastructure and Helps Grow Maryland’s Economy The Child Care Scholarship Program is a lifeline for Maryland’s Families! The Child Care Scholarship Program has been frozen since May 2025, creating a waitlist with over 3,000 children and growing The number of families missing out is likely much bigger, as parents likely aren’t applying during the freeze, this negatively impacts Maryland’s economy Child Care Scholarship freeze destabilizes child care programs/businesses Child care investment delivers immediate return on investment for Maryland's economic growth
Survey - Summary of Critical Findings • Enrollment Crisis: 78.8% of providers experiencing decreased enrollment • Scholarship Freeze is Primary Driver: 85% of declining providers cite CCS freeze • Nearly 900 Children Lost to Pre-K: Competition from public Pre-K is significant • Staffing Impact: 44% of providers made staffing cuts or adjustments • High Program Dependency: 95.8% of providers accept scholarships; many families rely heavily on this support • Sustainability Risk: 43% of programs face closure within 12 months if freeze continues • Waitlists Despite Enrollment Drop: Two-thirds have waitlists (mainly infants/toddlers), indicating demand exists but affordability is the barrier • Awareness Gap: 45% unaware of partial reopening • Limited Pre-K Participation: Only 20% awarded Blueprint/Pre-K slots, meaning most face Pre-K as competition • Systemic Concerns: Administrative burdens, audit issues, and need for provider respect consistently raised
Federal recommendations • Child Care Scholarship market rates not increased in six years. The reimbursement rates MSDE/State Board recommended to cut 10% from 70th% to law limit of 60th% therefore any market rate will not have the financial impact intended to align with inflation and increasing costs of doing business. • Health and Human Services define affordable child care as costing no more than 7% of a family’s annual income, however Maryland far exceeds this recommendation with families often paying over 25% of income. A typical Maryland family with two children may spend over $30,000 annually for child care. • Child Care Scholarship Program administrative issues with advance payment model. /
Budget Constraints- What Can We Do? • Dedicated revenue stream - CCSP only serves 15% of eligible families.- Maryland Child Care is declining –leaving less options for families and lots of lost revenue-Maryland can’t afford not to figure this out. • Convene a state workgroup, commission, or affordability task force to develop strategies, study other states, provide a vision and identify sustainable revenue streams to fund Child Care Scholarship Program. Research states like Vermont, Connecticut, Montana, New Mexico to create recommendations on sustainable funding streams and innovative approaches to child care as our working families and our economy depends on child care! • Support and pass legislation that support smart regulations to help small businesses thrive, support proven successful workforce programs, support alternative pathways to prove competencies, support equitable expansion of mixed delivery of public PreK. • Continue to improve early care and education systems building on successes of the Ways and Means Committee, House and Senate around advocacy/legislation (HB 1441, HB 1475, HB 477, HB 859, HB 389/SB 516 property tax enable, HB 785, and consider revenue initiatives such as HB 1469 (For Our Kids Act) • Advocate! Just because there isn’t available funding today doesn’t mean planning and policy development can’t continue. We are here to engage, learn, and reimagine together through effective strategies, policies, initiatives, and move advocacy into action steps.
Child Care Practitioner Voices: The Importance of Child Care Scholarship and Support