New Jersey families are facing a major blow to child care access after the Department of Human Services (DHS) announced Friday that the state’s Child Care Assistance Program (CCAP) will stop accepting new applications after July 31, citing severe budget pressures tied to recent federal legislation.
Many Lakewood families received robocalls on Friday warning of this impending freeze, urging them to apply for their children immediately, if they are eligible.
While the controversial One Big Beautiful Bill Act was touted for delivering tax relief and expanding child credits, it also ushered in sweeping federal cuts to safety-net programs, triggering a $3.3 billion annual shortfall in New Jersey’s hospital and public health system. The state estimates this will force $360 million in annual budget cuts, affecting a wide range of services — including the state’s ability to maintain and grow child care subsidies.
Though CCAP itself was not directly cut, DHS officials said the ripple effects of lost federal support and decreased provider assessments have made it fiscally unsustainable to expand the program. As a result, thousands of low-income working families may be locked out of assistance just as inflation continues to drive up care costs.
In another blow to struggling households, parent copayments will increase starting August 1. Under the new policy, most families will be expected to contribute 6% of their income toward child care at the time of their next case redetermination — a steep hike that advocacy groups say could force some parents to quit their jobs or leave children in substandard care.
Payments for current enrollees will continue as long as families remain eligible through periodic redetermination reviews. However, no new applications will be accepted — with one exception: children enrolled through the Work First New Jersey (WFNJ) cash assistance program will still be eligible.
