Massachusetts only state to continue funding child care stabilization grants at same level federal government did

Lowell - On September 5, 2024, the Healey-Driscoll Administration, state legislators, local officials and providers highlighted Massachusetts’ national leadership when it comes to making child care more affordable and accessible. In particular, Massachusetts is the only state in the nation to continue funding the Commonwealth Cares for Children (C3) stabilization grants for providers at the same level as the federal government. 

The Fiscal Year 2025 (FY25) budget signed by Governor Healey sustains the state’s commitment of $475 million for this program and makes it permanent. Last year, the C3 program contributed to a 7 percent increase in child care programs, adding more than 10,600 child care slots across the state. 

Governor Maura Healey, Education Secretary Patrick Tutwiler, Lowell Mayor Dan Rourke, Lowell City Manager Tom Golden, State Representative Vanna Howard, State Representative Rodney Elliott, House Majority Leader Alice Peisch, Education Committee Co-Chair Representative Denise Garlick and other local officials and community members marked this milestone at a Head Start preschool classroom at the Community Teamwork in Lowell. C3 supports early education and care providers’ day-to-day operational costs, including compensation that enables programs to better recruit and retain their staff while mitigating increased costs for families.?This critical funding effectively helped to stabilize the state’s child care system, enabling early education programs to remain open, and is also supporting system-wide growth through investments in workforce, quality and affordability.  

“Massachusetts is the number one state for women, for having a baby and for raising a family. That’s in large part due to our commitment to making the strongest child care and early education investments in the country,” said Governor Maura Healey. “Our nation-leading efforts have added thousands of new child care slots across the state, and we’re continuing to partner with the Legislature to make child care more affordable and support our hardworking providers.”

“The C3 program has been a huge success in keeping child care programs open, adding more seats, increasing educator salaries and reducing costs for families. Massachusetts is proud to be leading the way by sustaining this vital program,” said Lieutenant Governor Kim Driscoll. “We know that child care is foundational to our economy and key to our competitiveness, and want to make sure that employers, investors and workers alike know that Massachusetts provides the best access to affordable child care.”

Thanks to strong state investment, the early education and child care system in Massachusetts has rebounded and now exceeds pre-pandemic licensed capacity by 7,100 child care spaces, representing a total increase of approximately 37,000 seats compared to the pandemic low in the Spring of 2021. 

“This summer, the Healey-Driscoll administration held 14 in-person and virtual listening sessions across Massachusetts. One thing we consistently heard from early education and care programs was how crucial C3 grants are,” said Education Secretary Dr. Patrick Tutwiler. “The pandemic era stabilization grants for the child care sector were a first and clearly demonstrated how critical this type of funding is to stabilize, heal, and transform the early education and care system. By continuing these grants on a permanent basis with full state funding, Massachusetts continues to lead the nation.”

“One of the most important levers to address the market failure leading to high child care costs and low educator wages has been the C3 program. Under Governor Healey’s leadership, and in partnership with the Legislature, C3 remains a critical funding mechanism for the early education and care sector?that?provides ongoing?operational resources to programs,” said Early Education and Care Commissioner Amy Kershaw. “With the continuation of this program, the state is investing in sustained and expanded capacity to serve working families and workforce and program quality and is building a system that is more accessible and affordable for all?families.”

In addition to funding C3 at $475 million, the FY25 budget prioritizes early education and child care in a number of other ways, including: 

$872 million for child care financial assistance to support low- and moderate-income families, including families receiving services or supports from DTA and DCF, as well as staff working in early education and care programs.  

$85 million for reimbursements for early education and care providers who accept state child care financial assistance, known as rates, $20 million over FY24 for new rate increases this year to better cover the cost of providing care. This is a $20 million increase over FY24.

$22.5 million for the Commonwealth Preschool Partnership Initiative (CPPI) to maintain FY24 expanded universal access to high-quality preschool, with a focus on gateway cities and rural communities.

$18.5 million for supplemental grants to Head Start programs.  

Earlier this year, recognizing the essential role child care plays in supporting the state’s economy and competitiveness, Governor Healey signed an executive order directing all state agencies to help make child care more affordable and creating an Early Education and Child Care Task Force. The task force includes all cabinet Secretaries, who engages with industry and business leaders, organized labor, and other experts. They recently held a series of listening sessions across the state to gather input to help inform the administration’s approach to affordable child care.

"Along with increasing our ability to fairly compensate teachers and staff, C3 grants and other state supplemental funding have enabled us to meet the increasing needs of our children and families.?The soon to be open, Rita O'Brien-Dee Center for Behavioral Health and Development,?is one of our responses to the great challenge of mental health for our children, staff and families and continued funding through C3 grants is helping us to provide this much needed programming for our community," said Karen Frederick, Community Teamwork CEO.?"We are grateful to Governor Healey and her Administration?for taking a leadership role in ensuring this critical funding continues."

“Affordable and accessible early education and care is core to being a competitive Commonwealth, and making C3 grants permanent is a monumental step forward for Massachusetts kids and families," said Senate President Karen E. Spilka. "Codifying C3 grants means keeping costs down for families, keeping doors open for providers, and helping educators get paid what they deserve. I'm proud the Senate led the charge to include this in our final budget, and grateful to the Healey-Driscoll Administration for swiftly getting these dollars to providers."

“I'm proud of the House's longstanding commitment to early education and care in the Commonwealth," said House Speaker Ronald J. Mariano. "The historic investments we've made in this year's budget ensure our early education workforce is supported, and that children and families have greater access to affordable, high-quality programming across the state. Thank you to the Healey-Driscoll Administration for its ongoing partnership in these efforts.”

“Massachusetts has always been at the forefront of championing initiatives that improve the lives of our residents, and the Commonwealth Cares for Children (C3) grants are a testament to that commitment,” said Lowell Mayor Daniel P. Rourke. “By prioritizing affordable and accessible childcare, we are not only investing in our children's future but also supporting the hard-working families who are the backbone of our communities. These grants reflect our shared values and our unwavering dedication to ensuring that every child in Lowell and Massachusetts has the opportunity to thrive.”

“Affordable child care is not just a family issue—it's an economic imperative,” Lowell City Manager Tom Golden. “In Lowell, we see firsthand the difference that the C3 grants have made for our child care centers and families. We are grateful to the Healey-Driscoll Administration for leading on this issue and understanding the critical role child care plays in communities. This investment is a win for parents, providers, and employers in Lowell and across Massachusetts.” 

Statements of Support

Assistant Majority Leader?State Representative Alice Peisch:

“Access to high-quality early education has long been a priority of the House. The C3 Grants pave the way for a healthier, more stable early education and care system for families across the Commonwealth.?I was glad that the Legislature acted to ensure that more families in the Commonwealth can access high-quality education and care. Ensuring that all children, regardless of socio-economic background, have access to high-quality early education and care will bring the Commonwealth closer to eliminating the achievement gap.”

State Senator Jason Lewis, Co-Chair of the Joint Committee on Education:

“Access to high-quality, affordable early education and child care is essential for the healthy development of young children, as well as for the economic well-being of working families and employers in the Commonwealth. I am proud that the Massachusetts Legislature has fully funded the C3 grant program and made it permanent, along with other steps to support early ed providers, increase compensation for educators, and improve access for children and families. Massachusetts is leading the nation.”

Rep. Denise Garlick, Co-Chair of the Joint Committee on Education:

“Affordable, accessible, quality early education is critical for Massachusetts’ students, families, and educators. The FY25 Budget represents a significant commitment to early education and care, directing state dollars to our most vulnerable children, strengthening providers, and codifying key programs that support the sector. Additionally, the Legislature builds in important accountability measures. We stand with early educators to fund programs that uphold the dignity of the profession and recognize the critical role they play in providing a foundation for early literacy and lifelong learning for the children of our Commonwealth.”

State Representative Vanna Howard:

“The C3 grants were a lifeline for EEC programs in the wake of the COVID pandemic and have continued to be a stabilizing force during the recovery. Child care facilities in my district have expressed the need for a steady revenue source to address rising costs and retaining their workforce. The permanent funding of the C3 program through a mix of Fair Share funds, lottery revenues and trust fund transfers addresses that issue directly. This will go a long way toward expanding and sustaining the progress the Commonwealth has made in early education and child care. I want to thank Speaker Mariano, Chair Michlewitz and Chair Garlick and their respective staff for their continued, steadfast commitment to families and students across the Commonwealth.”

State Representative Rodney Elliott:

“Child care costs place great financial burdens on our working families. Today’s announcement is welcome news for the City and CTI. The Commonwealth Cares for Children program (C3) provides important support to child care centers to fill funding gaps.  With this funding, we will be able to offer more affordable and equitable education.

Paul Belsito, Chair of the Board of Early Education and Care:

“The permanent establishment of the Commonwealth Cares for Children (C3) program marks a step forward in ensuring the sustainability and growth of the early education and care sector in Massachusetts. By continuing to fund these critical grants at the same level as the federal government did, the Healey-Driscoll Administration and state legislature is not just supporting our providers but is also investing in the future of our children, families, and workforce. This commitment underscores Massachusetts' leadership in creating a more accessible, equitable, and high-quality early education system for all.”

Massachusetts Head Start Association Executive Director Michelle Haimowitz:

“The Massachusetts Head Start Association is grateful for the Healey-Driscoll Administration and the Legislature’s leadership in codifying C3 grants and providing ongoing, stable resources for the Head Start workforce and services. Head Start is a critical part of Massachusetts’ early childhood mixed delivery system, serving our Commonwealth’s most vulnerable young children and families with no-cost early education and comprehensive services, including mental health and family resources. State programs including C3 and Head Start State Supplemental Grants are needed resources for Head Start to raise wages for our dedicated educators and support child and family services, particularly given new federal regulations requiring wage increases in the coming years.”

Massachusetts Association of Early Education & Care Executive Director William Eddy:

“Early Education programs across Massachusetts are grateful for the efforts of Governor Healey, as well as the House and Senate, for ensuring that C3 early education grants are maintained.?Their collective leadership has resulted in more stable early education programs, investments in early educator salaries, and greater access for Massachusetts’ working families to high-quality early education and care for their children.” 

Neighborhood Villages Co-President Lauren Kennedy:

“The Massachusetts Fiscal Year 2025 budget was a landmark investment in early education and care, particularly with respect to its making direct-to-provider operations grants permanent. Not only have these grants made it possible for early education providers to keep their doors open to families across the Commonwealth, but they have also enabled providers to increase educator wages without raising tuition costs for families. Making the Commonwealth Cares for Children (C3) grants program permanent puts Massachusetts on the pathway to being a national leader in child care transformation."

Strategies for Children Executive Director Amy O'Leary:

“C3 Operational funding was unimaginable in my days as an early educator. To think that there would be support that was not connected to a rate or attached to a child, that was there to support and to help cover costs where there often are no other sources of money for, would have been considered a dream. We proved that all wrong over the last few years, not only with the creation of the C3 funds, but spending every federal dollar, and then our state stepping in when that support from the federal government ended. We are a model for the country and will continue to be as we consider incredible opportunities to continue deliver on the promise of supporting a high-quality system in Massachusetts.”