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Michigan has received $1.4 billion in federal childcare funding. The two new rounds of stimulus were passed through the Coronavirus Response and Relief Supplemental Appropriations Act (CRRSAA) and the American Rescue Plan Act (ARPA). This is in addition to the $241.5 million Michigan receives annually in federal Child Development and Care program dollars specifically for childcare. In her Executive Recommendation, Governor Whitmer proposed how to spend CRRSAA funds, and this proposal reiterates and expands on those priorities.

Investment Highlights

  • Stabilize childcare Businesses
    • Raise childcare subsidy rates by 20% for providers to move closer to the market rate for childcare.
    • Provide business stimulus grants to all child-care providers to help them remain open and serving Michigan families.
  • Expand access to childcare with grants to new and expanding sites in communities without adequate childcare. 10% of the ARPA stabilization grants is proposed to be set aside for this purpose.
  • Make child- care more affordable for families
    • Increase income eligibility from 150% of FPL, $39,300 annually for a family of four, to 200% FPL or $53,000 annually for a family of four from August 1, 2021 to September 30, 2023. This policy makes low or no-cost child-care available to an estimated 150,000 more children. Thereafter, income eligibility permanently increases to 160% FPL, $41,920 annually for a family of four.
    • Increase access to the childcare subsidy for student parents enrolled in Michigan Reconnect and Futures for Frontliners for a 12-month period. Individual student parents will leave the program per the exit requirements.
  • Support for early educators and child-care professionals
    • Offer premium pay for child-care professionals in the amount of $500 stipends paid quarterly through September 2022.
    • Maintain mental health supports provided by infant and early childhood mental health consultants for children enrolled in childcare.