Thanks to strong bipartisan support, the final FY2023 omnibus spending package prioritized more than $2.8 billion in funding increases for core federal early learning and care programs, including a 30% increase in funding for the Child Care and Development Block Grant (CCDBG) program. 

CCDBG is the primary federal grant program that provides child care support to low-income families. The $1.86 billion increase from FY2022 funding levels, the program’s largest annual appropriations increase in history, is much needed considering CCDBG only serves 14% of eligible children. 

On Tuesday, the Center for Law and Social Policy (CLASP) released FY2023 state-by-state appropriations distribution estimates for CCDBG. CLASP’s analysis shows that the increases in 2023 range from $2 million in Vermont to $209 million in Texas. This increase in funding will allow states to serve more children and families by expanding access to affordable, high-quality child care options.

States have significant discretion in determining how to use CCDBG funds. Among other uses, states can use this increase in CCDBG funding to:

  • Increase income eligibility limits or broaden other eligibility criteria to help more low-income, working families access affordable, high-quality child care
  • Raise payment rates to better reflect the true cost of high-quality care
  • Invest in infrastructure to improve the quality and safety of child care programs
  • Meet health and safety standards
  • Meet the child care needs of families working nontraditional hours 
  • Promote family engagement with outreach and consumer education
  • Recruit and retain a well-qualified, effective workforce. This is especially important given the current shortage of child care workers. 
  • Support continuous quality improvement

Click here to see a table of each state’s estimated CCDBG discretionary funds and the estimated increase from FY2022 to FY2023.