Study Shows Fiscal Problems Led to Restrictions on Low-Income Families
Nearly half the states have reduced child-care subsidies for poor families during the past two years, according to a federal study to be released today, which shows that states' fiscal problems have prompted state agencies to restrict eligibility, stop accepting new families or charge them more for the care.
The analysis found that the changes have, in particular, decreased the availability of subsidized day care for low-income working families, although a few states have also tightened subsidies for families that are on welfare or have recently left it.