This bill proposes an increase of $28 million to the Work First New Jersey Child Care appropriation, raising the total from $565.8 million to $593.8 million for the fiscal year 2026. This funding is essential to fully support the state's child care subsidy program, which aids lower-income families by covering a portion of their child care costs. The increase addresses a funding shortfall identified by the Commissioner of Human Services, who previously indicated that the Governor's budget recommendation underfunded the program by approximately $25 to $30 million, leading to a pause in enrollment and increased family copayments.

In addition to the funding increase, the bill removes existing language that allows the Department of Human Services to suspend the acceptance of applications for child care assistance due to insufficient funding. Instead, it mandates that the Commissioner of Human Services must resume processing applications for child care assistance and implement family copayments that are no more stringent than those in place as of June 30, 2025. This change aims to restore the program's policies to their status before August 1, 2025, ensuring continued support for families in need.