MAILBAG: The Simple Key To Solving Lakewood’s Childcare Crisis

Recently, the state has been removing families from the CHS free daycare program due to changes in eligibility, affecting hundreds of families. While there is ongoing momentum in Trenton to expand the program and include these families, I believe it’s important to step back and assess the broader implications of the CHS system—and the best way forward for Lakewood families.

The CHS program was designed to help low-income families access daycare by paying $1,200 to $1,500 directly to daycare centers for each child. While the intention was good, many families who qualify for the program still face a significant financial burden, as they are required to pay a copay, reducing the program’s actual benefit. More troublingly, the real winners in this scenario seem to be the owners of the CHS-funded daycare centers, rather than the families the program was designed to help.

Moreover, the system creates a stark imbalance. Many families in Lakewood and the surrounding areas are not eligible for CHS, yet they still pay $500 to $600 per month for daycare. This rising cost of daycare is further exacerbated by the emergence of new, upscale CHS-funded centers that drive up prices, making daycare increasingly unaffordable for the middle class. As it stands, middle-class families simply cannot afford the $15,000 annual cost of a CHS facility.

While government entitlement programs like CHS are well-intentioned, they can often inadvertently harm the very people they aim to help. They create perverse incentives for eligible families to keep their income below the threshold to avoid losing benefits, trapping them in a cycle that stifles upward mobility. This is where alternative solutions, such as Congressman Josh Gottheimer’s “LITTLE Act,” come in.

Gottheimer’s proposal, which offers a $7,500 tax credit per child, is a game-changer. Unlike grant-based systems like CHS, the LITTLE Act puts money directly into the hands of parents, giving them the flexibility to use the funds as they see fit—whether for daycare or other essential needs. This system would empower parents to make personalized choices for their children’s care, allowing them to select options that align with their family’s unique needs and priorities.

Importantly, this proposal would also benefit stay-at-home mothers, who often receive little to no support under current systems. Vice President Elect JD Vance has similarly supported a $5,000 tax credit per child, which would further promote a more equitable system that empowers parents and keeps childcare costs competitive.

In Lakewood, where over 30,000 frum children under the age of six live, an increase in the child tax credit under Congressman Gottheimer’s plan would inject an additional $165 million into the local economy. In comparison, Senator JD Vance’s plan would contribute $90 million. Unlike the CHS system, which disproportionately benefits daycare center owners, both of these tax-credit proposals ensure that funds are distributed directly to families, giving them the freedom to make the best choices for their needs.

As famed economist Milton Friedman once said, “Nobody spends somebody else’s money as carefully as he spends his own.” By empowering families with the financial tools to make the best decisions for their children, we ensure that resources are used more effectively and efficiently.

Signed,

P.G.

The views expressed in this letter are those of the author and do not necessarily represent those of Lakewood Alerts. Have an opinion you would like to share? Send it to us for review.