Why don’t families apply for child care subsidies? Results from a survey of subsidy users and non-users in New Mexico

Subsidized child care is beneficial for families and children, yet a low proportion of eligible families enroll in subsidy programs. This study evaluated characteristics of users and non-users of child care subsidies, reasons non-applicants cited for not applying for the program, and variation in reasons for non-application by participant characteristics. Four hundred and seventy-nine families recruited in 2022 at Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) clinics in New Mexico completed a survey. Subsidy uptake was more likely among respondents with greater educational attainment and those living in urban areas, and was less likely for Native American respondents. Knowledge barriers, including lack of awareness about the subsidy program or its eligibility criteria, were cited most often as reasons respondents did not apply for child care subsidies. Respondents who were not working or in school were more likely to say they had not applied because they did not want or need care, while respondents living in rural areas and those with at least one immigrant in the household were more likely to say they did not apply because they had not heard of the program. The study took place in New Mexico during a period of expansive subsidy eligibility and availability, adding novel insights into families’ perceptions about the burdens and benefits of program participation in the absence of rationing or scarcity. Findings point to the importance of subsidy program outreach and education to reduce learning costs, particularly in predominantly rural, Native American, and immigrant communities.