(WWJ) -- Gov. Gretchen Whitmer is proposing to invest more than $1 billion in federal child care funding to make it better, more affordable, more available for Michigan families as the state’s workforce and economy continue to recover from the effects of the pandemic.
Speaking at Babes in Toyland in Troy on Monday, Whitmer said the pandemic “shined a light” on the glaring need for better access to child care across the state.
Whitmer’s plan would call for taking $1.4 billion received from the federal government through multiple large stimulus and relief bills and using it to increase access to child care for Michigan families. Specifically, the state received the additional funding through the Coronavirus Response and Relief Supplemental Appropriations Act and the American Rescue Plan Act.
That money would be in addition to the nearly $250 million the state receives annually in federal Child Development and Care dollars for child care.
“Basically, we have a one-time injection of six times the amount of resources we usually have for this purpose,” Whitmer said Monday. “So, clearly this is an unprecedented opportunity granted by the extraordinary circumstances of a once-in-a-century pandemic.”
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Whitmer says all families “deserve access to quality child care that meets their needs.” The governor says her investments announced Monday will make it easier for families to get the care they need.
Highlights from Whitmer’s plan include:
Make child care more affordable for families
-- Increase income eligibility from 150% of the federal poverty level (FPL), $39,300 annually for a family of four, to 200% or $53,000 annually for a family of four from August 1, 2021 – September 30, 2023, making low or no-cost child care available to an estimated 150,000 more children. Thereafter, income eligibility permanently increases to 160% FPL, $41,920 annually for a family of four.
-- Increase access to the child care subsidy for student parents enrolled in Michigan Reconnect and Futures for Frontliners for a 12-month period. Individual student parents will leave the program per the exit requirements.
Support for early educators
-- Offer premium pay for child care professionals with stipends paid quarterly from July 2021 – September 2022.
-- Maintain mental health supports provided by infant and early childhood mental health consultants for children enrolled in child care.
Stabilize child care businesses
-- Raise child care subsidy rates by 20% for providers to move closer to the market rate for child care.
-- Provide business stimulus grants to all child care providers to help them remain open and serving Michigan families.
Expand access to child care
-- Provide grants to new and expanding sites in communities without adequate child care (10% of the ARPA stabilization grants is proposed to be set aside for this purpose).
Lt. Gov. Garlin Gilchrist says access to affordable, reliable and safe child care can be “transformative” for Michigan’s economy.
“Under Governor Whitmer’s leadership, we have a one-time injection of 6 times the amount of resources that we receive in a typical year for child care,” Gilchrist said. “This historic investment would change the lives of families across our state for the better. When we invest into our child care system, we’re allowing for parents to work and be even more productive and providing an environment that children can thrive in.”
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