Included in New Jersey Governor Mikie Sherrill’s proposed state budget for Fiscal Year 2027 is an $18 million increase for the state’s Child Care Assistance Program (CCAP), allowing thousands of additional children to enter the program, according to details in the governor’s proposed state budget.

Last summer, New Jersey stopped accepting new applications for the program after a funding shortage forced the state to cap enrollment, leaving many families without access to subsidies.

Under the proposed fiscal year 2027 budget, the state would allocate approximately $582 million in state funding for the program, allowing 77,500 children to be enrolled statewide, roughly 2,500 more than were served in fiscal year 2026.

Shlomo Schorr, director of legislative affairs for Agudath Israel of America’s New Jersey office, welcomed the proposal but said additional funding will likely be needed to ensure the program meets the needs of all eligible families.

“In a tight fiscal environment, prioritizing additional support for working families struggling with the high cost of child care is an important and encouraging step,” Schorr told TLS.

“At the same time, additional resources will still be necessary to fully fund the program and ensure that all eligible families are able to access assistance,” he added.

Schorr also said policymakers should ensure children whose parents are graduate students are included when the program is expanded.

“These families are often balancing significant financial pressures while pursuing education that will strengthen New Jersey’s workforce and economy,” he said.

Last year, then New Jersey Governor Phil Murphy signed into law a bipartisan measure sponsored by Assemblyman Avi Schnall which expanded program eligibility to include full-time graduate and post-graduate students.

Under that law, which Agudath Israel advocated for and lobbied in support of, full-time graduate and post-graduate students who meet existing income, asset, and residency requirements will also be eligible for subsidized child care through the program. However, the law was dependent on sufficient funds, which the budget has not yet supported.

The program has been providing subsidies for nearly 70,000 children across the state – with over 6,000 of those in the Lakewood area – at a cost of approximately $872 million in state and federal funds.

The Legislature will review the governor’s spending proposal in the coming months before adopting a final budget ahead of the start of the new fiscal year on July 1.