The U.S. Child Care Subsidy Program Is Underused but Well-Positioned to Promote Racial Equity

Child care is expensive and difficult to find, especially for infants and toddlers. Compared to their higher-income peers, children from lower-income families are less likely to attend out-of-home early childhood care – which tend to be more expensive but provides more stability and is higher quality than home-based care. This contributes to disparities in school readiness and later life outcomes. This brief summarizes findings from a recently published paper examining administrative data from the Commonwealth of Virginia. Findings suggest that children are least likely to receive subsides when they are infants and toddlers despite early childhood care being the most important to development in the first three years of life