Hundreds of Thousands of Eligible Kids Are Waiting for Childcare Assistance

# What the investigation found

# Why the backlog grew Many waitlists began or expanded after a $28 billion pool of pandemic-era childcare funding expired in fall 2024. That federal infusion had temporarily boosted state programs. When Congress did not extend that extra funding, several state programs ran short and started waitlists or paused new enrollments.

# Who is affected Childcare assistance is designed for working parents who are low-income, people experiencing homelessness, and foster families. Reported impacts include:

• Parents forced to reduce or stop work and education because they cannot afford care.
• Families making extreme budget tradeoffs—skipping groceries, relying on food banks, or taking multiple jobs.
• Foster children who remain in care because their birth parents, though meeting court requirements, cannot afford childcare that would allow reunification.

# State-level snapshot

• Indiana: After pandemic funds ran out, the state started its waitlist in December 2024 and, until May 2026, placed virtually every applicant—including foster parents—on it. By spring 2026 nearly 37,000 children were waiting for assistance.

# Consequences for work, education, and reunification Parents who keep working or in school often make difficult, costly tradeoffs. Some rely on friends or neighbors for intermittent care. Others bring children to jobs or classes when no alternative exists. For families involved with the child welfare system, lack of childcare assistance can block required steps—such as employment—needed for reunification, leaving children in foster care longer than court-mandated plans anticipate.

# What states are doing Some states have increased funding to try to fill the gap left by expired federal aid. The investigation indicates those efforts have not matched the rising need: families continue to face long waits, reduced access, and, in some places, outright denials.

# Bottom line Government-funded childcare assistance is intended to reduce costs for eligible low-income parents so they can work, train, or regain custody of children. The expiration of federal pandemic aid in 2024 and insufficient state funding have led to widespread waitlists, forcing families into painful tradeoffs and limiting workforce and educational participation.