LEGISLATIVE FISCAL ESTIMATE
[First Reprint]
ASSEMBLY, No. 4544
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: DECEMBER 19, 2024
SUMMARY
Synopsis: Expands eligibility requirements of State's child care assistance
program to include full-time graduate and post-graduate students.
Type of Impact: Annual State expenditure increase.
Agencies Affected: Department of Human Services.
Office of Legislative Services Estimate
Fiscal Impact Annual
State Expenditure Increase Indeterminate
 The Office of Legislative Services (OLS) concludes that the bill’s provisions would result in
an indeterminate increase to State expenditures due to growth in the number of families who
would qualify for benefits under the child care assistance program. In FY 2025, the estimated
average annual cost per child under the program is approximately $11,576.
BILL DESCRIPTION
This bill requires the Division of Family Development in the Department of Human Services,
subject to the availability of funds appropriated in the annual appropriations act for the purposes
of the bill, to expand the work, school, and training eligibility requirements of the State’s child
care assistance program to include that an applicant who is a full-time graduate student or a full-
time post-graduate student is eligible to participate in the program, if the applicant meets all other
eligible criteria regarding income, assets, and residency.
Currently, the eligibility requirements of the child care assistance program include full-time
students, enrolled at a college or university as part of a two-year associate’s or four-year
baccalaureate degree program, with the goal to achieve a degree or credentials to gain employment,
who qualify for financial assistance under the program.
Office of Legislative Services Legislative Budget and Finance Office
State House Annex Phone (609) 847-3105
P.O. Box 068 Fax (609) 777-2442
Trenton, New Jersey 08625 www.njleg.state.nj.us
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FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS concludes that the bill’s provisions would result in an indeterminate increase in State
expenditures due to growth in the number of families who would qualify for benefits under the
child care assistance program. The child care assistance program is administered by the Division
of Family Development in the Department Human Services and provides low-and moderate-
income parents who are working, attending undergraduate schooling, or participating in a training
program with subsidies for child care, including preschool instruction, after-school programs for
children up to age 13, and care for children and teens with special needs. Subject to the necessary
appropriations included in the annual appropriations act, which this estimate assumes will occur,
this bill would allow parents who are full-time graduate or post-graduate students to be eligible for
subsidies under the program. In FY 2025, the estimated average annual cost per child under the
program is approximately $11,576.
The OLS estimates that there are 12,827 full-time graduate and post-graduate students who are
raising children in the State. Of these students, it is unknown how many would be otherwise
eligible for child care assistance benefits and would also be in need of child care. Of the existing
eligibility factors, the OLS assumes that income would be the most significant determinate of a
full-time graduate or post-graduate student’s participation in the program. Currently, at initial
eligibility, a family of four can earn no more than $62,400 a year to be eligible for the child care
assistance program. Moreover, it is not known the number of children in need of child care per
eligible graduate or post-graduate student.
For reference, assuming 13 percent of all full-time graduate and post-graduate students in the
State with children, or 1,667, would be otherwise eligible for the child care assistance program,
would elect to apply for benefits, and had, on average, 1.5 children with child care needs, the cost
under the bill would be approximately $29 million. As the child care assistance program receives
federal support in the form of block grants, this estimate assumes that the increase in costs under
the bill would be incurred solely by the State.
Section: Human Services
Analyst: Sarah Schmidt
Lead Research Analyst
Approved: Thomas Koenig
Legislative Budget and Finance Officer
This legislative fiscal estimate has been produced by the Office of Legislative Services due to the
failure of the Executive Branch to respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).