Even in the best of times, high-quality child care is out of reach for many families who need it. Families typically spend between 15% (two earners) and 36% (single earner) of their income on child care (Joughin, 2021). This is far beyond the 7% of a family’s income that is recommended by the U.S. Department of Health and Human Services (OCC, 2024). For many parents, the cost is simply too high.
The pandemic put additional strains on the system in Michigan, sharply affecting coverage and threatening the viability of home-based providers, a key source of care. When families have affordable high-quality child care, many short- and long-term benefits emerge for communities, families, and children (Office of Child Care [OCC], 2024).
Michigan greatly mitigated that damage by expanding eligibility for the Child Development and Care (CDC) Scholarship program, while also offering higher payment rates, more flexible billing rules, and stabilization grants to providers.
In partnership with two state agencies, we assessed the impact of policy changes implemented between 2015 and 2022, identifying lessons that could broaden the reach of the program for families and providers in Michigan, as well as inform other states’ policies.
Michigan’s Child Development and Care Program
The Child Development and Care (CDC) Scholarship program helps families afford quality child care in Michigan.
- The program is administered by the CDC office within the Michigan Department of Lifelong Education, Achievement, and Potential (MiLEAP), which oversees funding, policies, and provider payments.
- The eligibility specialists of the Michigan Department of Health and Human Services (MDHHS) review applications and make approvals or denials.
- The Bridges system, administered by MDHHS, holds case information.
- The program is open to families with children aged 0-13 who meet the eligibility criteria. In December 2022, over 32,000 children in the state received child care through the program.
- The program’s funding sources include state investment and the federal Child Care Development Fund (CCDF).
