Great Lakes Wire

Michigan has been awarded a $33 million federal grant aimed at reducing child care costs and enhancing programming, according to a recent report by Public Policy Associates (PPA). This development comes alongside findings from a five-year study conducted in collaboration with the Department of Lifelong Education, Advancement, and Potential (MILEAP) and the Department of Health and Human Services (DHHS).

Colleen Graber, PPA Project Director, stated, “Overall, expanded eligibility and rate increases led to more families enrolling their children in high-quality programs and staying in them longer, which supports child development and helps parents.” Despite progress, Graber acknowledged ongoing challenges within Michigan's childcare system.

The study examined various aspects of the Child Development and Care Scholarship (CDC) program. In December 2022 alone, over 32,000 children benefited from the CDC as their parents pursued work or education. The PPA recommended aligning provider payment rates more closely with service costs and setting CDC eligibility at no less than 200% of poverty levels. The firm also suggested increasing provider supply and available childcare slots.

Financially, single-income families currently allocate 36 percent of their income to childcare expenses while two-income households spend about 15 percent—both figures exceeding DHHS’s recommended maximum of 7 percent.

The report highlighted disparities in scholarship use across different demographics. Black families reportedly gained the most from increased eligibility and availability of high-quality providers. However, rural areas saw minimal use compared to regions like Metro Detroit.

Gov. Gretchen Whitmer emphasized the significance of initiatives such as the Tri-Share Child Care program introduced in 2021. MILEAP intends to utilize part of the grant to attract talent by facilitating healthcare benefits for early childhood workers while maintaining affordable childcare costs.

Brian Calley, CEO of the Small Business Association of Michigan, commented on the importance of accessible childcare for both employees and employers: “This grant supports our ongoing efforts to support the childcare industry and its infrastructure.”

Beverly Walker-Griffea, MILEAP Director, reported that since August 31st over 1,600 new licenses have been issued following Caring for MI Future's launch in May 2022. She reiterated Michigan's commitment to expanding affordable quality childcare options through collaborative efforts.

Walker-Griffea concluded by acknowledging federal investments: "Michigan families and our economy depend on access to affordable and high-quality childcare."