Poster #59 - From Approval to Access: Understanding Why Eligible and Approved Families Don’t Use Child Care Subsidies

• In Event: Friday Poster Reception

Abstract

Public investments in child care subsidies are designed to support parental employment, promote child development, and strengthen family economic stability by helping families with low incomes pay for child care. However, program effectiveness depends not only on eligibility determination but also on whether approved families successfully use their benefits. A subsidy program in the south serves approximately 50,000 children, yet a substantial share of families approved for subsidies do not use them. While these families have demonstrated need for financial support, successfully navigated the application process, and were approved for the program, they did not use it to pay for care. The disconnect between approval and use raises important questions about barriers to program uptake and implementation. We examined the characteristics and experiences of this population to identify barriers and facilitators for uptake.  

We conducted a representative survey of more than 1,500 families who had an active subsidy or had previously participated in the program. We collected information on demographic characteristics, eligibility group, child care arrangements, economic and emotional well-being, and experiences with the subsidy program. To understand the characteristics of families approved for, but not using subsidies and identify potential barriers to uptake, we conducted descriptive analyses and multivariate regression models, controlling for income, household size, education, and child age.  

Findings indicate that families who were approved for, but did not use their subsidy, face distinct and compounding barriers. Compared to families currently or previously using their subsidy to pay for child care, they are significantly more likely to be unhoused. Moreover, even after adjusting for key covariates such as income, household size, education, and child age, these families report significantly greater difficulty meeting basic needs. Specifically, they are more likely to report challenges affording food, housing, healthcare, extracurricular activities, and child care and education-related expenses. They also report higher levels of overall stress and stress specifically related to early care and education.  

These findings underscore a critical gap between subsidy approval and access to child care. Barriers - such as housing instability, potential mismatches between subsidy design and family needs, and challenges navigating the early care and education market - may limit families’ ability to use their subsidy. From a policy perspective, these results highlight the importance of moving beyond eligibility as a measure of program success and toward a more comprehensive understanding of access and use. Addressing these challenges is essential for improving access and maximizing the intended impacts of child care subsidy programs on family and child well-being. Strategies such as outreach focused on families experiencing documented barriers to program use, more flexible subsidy policies, and enhanced supports for families experiencing high levels of economic and logistical barriers may improve alignment between program design and family circumstances, ultimately strengthening the intended impacts of child care subsidy programs.

Author

• Laura Jimenez Parra, Urban Institute
  Presenting Author