As the state of New Jersey grapples with a $1.5 billion structural deficit included in the recently signed state budget for Fiscal Year 2026, The New Jersey Department of Human Services announced that the state’s Child Care Assistance Program (CCAP) will no longer accept new applications after July 31, 2025.
Budgetary pressure intensified following the passage of the One Big Beautiful Bill Act, which—while providing federal tax relief and expanded credits—also enacted substantial cuts to safety‑net funding, including Medicaid and SNAP.
While there were no direct cuts to this specific program, the department estimates it will face cuts of approximately $3.3 billion per year in hospital and public health funding, resulting in $360 million in annual state budget reductions tied to the decreased federal funding and provider assessments.
“This year’s state budget has been particularly challenging, requiring complex decisions that weigh many competing needs and limited funding,” DHS, which administers the child care programs, said in a statement. “Fortunately, our Child Care Assistance Program (CCAP) was not cut. However, funding for serving more children beyond those we currently serve was not included.”
Child care providers will continue to receive payments for all active CCAP children as long as families maintain eligibility during redetermination periods.
In a related change, the Department of Human Services also announced that beginning August 1, 2025, parent copayments will increase for most families at the time of case redetermination. The new standard copay will rise to 6 % of a family’s income, although actual amounts will be reflected on the finalized Parent/Applicant and Provider Agreement (PAPA).
The move comes as local officials, including Assemblyman Avi Schnall (D-Lakewood) have been working on legislation which expands eligibility for the state’s child care assistance program to include full-time graduate and post-graduate students.
The bill recently was approved by the full Legislature and awaits a signature from Governor Phil Murphy.
The state will continue to take applications for children in the Work First New Jersey (WFNJ) cash assistance program.
Friendly reminder that lakewood voted overwhelmingly for Trump and he made it very clear these cuts were coming. Do not complain, but maybe think about voting democrat next time around
Friendly reminder, the state budget is full of giveaways for illegals from legal assistance through tuition medical care and housing. Basta! enough already. Nobody gave our ancestors anything except a chance when they stepped off the boat. Mine were given the choice of a musket or a shovel. We’re broke. 37 trillion in debt is unsustainable. NJ’s taxes are outrageous. Childcare for grad students- that’s a luxury frill I don’t want to pay for.
Never vote for a Democrat. These programs are benefiting illegals more than Ameircans.
When towns like Monsey and New Square are the most benefit dense areas in the country, your claims are hard to believe. In the 90s during welfare reform, many states enacted laws where folks without legal immigration papers could not claim benefits. I live in one of those blue states. You should be blaming the folks you voted for if they did not modify your state rules.
Undocumented people can’t get any government assistance. All forms ask for a social security number. Please do your research before spreading misinformation.
This is great news, now my non chs playgroup morah may be forced to charge less for my non chs approved child.
BH
To the contrary. There will now be more demand for nonCHS morahs so there price will go up/
Please explain. Why will your playgroup morah charge less cause chs is not taking new children?
The morahs are charging more cuz daycares charge more
But with larger copays the daycare prices will come down ( also less demand in the daycares all tog)
lakewood yid– the democratic governer raise taxes. I could care less about the the people needing programs.
I think if they cut chs funding more people will want to be morahs as paying for your own children is really expensive (think 2k a month post tax for 3 kids). This will bring down the prices as there will be more competition.