Connecticut Child Care Crisis Deepens as 3,844 Children Wait for Subsidies Despite State Investment

Connecticut faces a worsening child care crisis as families struggle with rising costs and lengthy waits for assistance, even as the state prepares major reforms scheduled for 2027.

More than 3,800 children currently sit on a waiting list for Care4Kids, the state’s largest child care subsidy program, according to data from early February 2026. Families now wait seven to nine months for subsidies, according to the Connecticut Early Childhood Alliance.

The crisis comes despite Connecticut’s historic $300 million investment in an Early Childhood Endowment last year. Gov. Ned Lamont proposed the legislation, which the General Assembly passed to eventually make Early Start programs free for families earning below $100,000 and raise wages for early childhood educators. However, those reforms won’t take effect until July 1, 2027.

“Rising costs for rent, food, utilities, and child care have outpaced inflation, squeezing more families out of the child care marketplace,” according to Merrill Gay, Executive Director of the Connecticut Early Childhood Alliance.

The Care4Kids program, which serves families earning below 65% of the state median income, saw a 9% increase in applications in 2025, according to state data. As of early February 2026, the program reached capacity with the waiting list affecting primarily families with infants and toddlers—over 1,900 children under age three need assistance.

The financial strain forces difficult choices for parents. Without access to affordable market-rate care, families delay returning to work, accept part-time or non-traditional hours, or rely on informal care from relatives and neighbors, according to the alliance. Bank of America Institute data shows the number of American families paying for child care actually decreased in 2025.

Connecticut reflects this national trend. Calls to the state’s 211 helpline seeking child care assistance dropped by 988 in 2025, according to state records.

The delays create cascading effects for families already facing financial pressure. Families with young children typically have their lowest net worth in the five years after their first child’s birth, with minimal savings for emergencies, according to the alliance. When parents cannot secure subsidies to return to work, they lose earnings, potentially triggering broader financial problems.

Families with children under age three face the highest risk of eviction, and calls to Connecticut’s homeless response system increased by 45% in 2025, according to state data.

The crisis also destabilizes child care programs themselves. Many providers now operate with vacant spaces they cannot fill. With fewer families affording private care and growing waitlists for Care4Kids subsidies, programs struggle to replace children who aged into kindergarten last fall.

Without tuition revenue, programs lose money, forcing long-time providers—particularly in low-income communities—to consider closing, according to the alliance. These potential closures would reduce overall child care capacity just as the state aims to expand it through upcoming reforms.

An increasing number of Connecticut households fall below the United Way’s ALICE (Asset Limited, Income Constrained, Employed) survival budget threshold, according to the alliance.

Gay calls the situation “ironic that at a time when Connecticut is investing more in child care than ever before—with major Early Start improvements scheduled in just 17 months—the state faces the very real possibility of program closures.”

The alliance proposes two immediate solutions: an infusion of funds into the Care4Kids program for Fiscal Year 2027 to clear the waitlist and sustain providers until Early Start reforms take effect, and an additional $300 million deposit into the Early Childhood Endowment to ensure resources exist for planned improvements.

The proposed solutions would bridge the gap between current needs and the 2027 implementation of expanded Early Start programs, potentially preventing program closures in communities that depend most heavily on the Care4Kids subsidy system.