Solving Benefits Cliffs in Child Care Assistance Programs
A new report from the Georgia Center for Opportunity examines how child care assistance programs can unintentionally discourage work. When parents receive a raise or increase their hours, they can suddenly lose thousands of dollars in child care subsidies, leaving them financially worse off despite earning more.
The report finds that soaring child care costs make these “benefits cliffs” particularly difficult to eliminate. It recommends reducing regulatory barriers, expanding access to in-home and relative care, encouraging public-private partnerships, and gradually reducing benefits as family incomes rise. The report also calls for eliminating marriage penalties built into assistance programs.
The findings offer an important lesson for policymakers: Government assistance should help families become financially independent, not penalize them for getting ahead. States have an opportunity to reform child care subsidies in ways that reward work, strengthen families and make assistance more sustainable.
Read More: Solving Benefits Cliffs in Child Care Assistance Programs
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Solving Benefits Cliffs in Child Care Assistance Programs
A new report from the Georgia Center for Opportunity examines how child care assistance programs can unintentionally discourage work. When parents receive a raise or increase their hours, they can suddenly lose thousands of dollars in child care subsidies, leaving them financially worse off despite earning more.
The report finds that soaring child care costs make these “benefits cliffs” particularly difficult to eliminate. It recommends reducing regulatory barriers, expanding access to in-home and relative care, encouraging public-private partnerships, and gradually reducing benefits as family incomes rise. The report also calls for eliminating marriage penalties built into assistance programs.
The findings offer an important lesson for policymakers: Government assistance should help families become financially independent, not penalize them for getting ahead. States have an opportunity to reform child care subsidies in ways that reward work, strengthen families and make assistance more sustainable.
Read More: Solving Benefits Cliffs in Child Care Assistance Programs