Policy Brief: Understanding the Evolution of Subsidized Child Care in California

Over the past decade, California policymakers have made substantial investments in early care and education (ECE), with an emphasis on serving lower-income families. Despite the near-tripling of state and federal funds for publicly provided child care since 2015, however, not all low- and moderate-income families can access subsidized care. To inform decision-making by state policymakers about expanding the ECE system and/or allocating dollars across priorities, our research sheds new light on families and young children (up to age 5) in subsidized care.

Access to subsidized child care has expanded

Our analysis indicates that subsidized child care-a substantial part of California's ECE landscape-is providing greater access to lower-income families and evolving in ways that align with broad goals of supporting children's development and parents' employment.

The number of young children served in the state's subsidized programs more than doubled from approximately 60,000 children in 2015 to 150,000 in 2025, while the statewide population of young children declined by 17% as of 2024.