Family Perspectives on Childcare Subsidy Recertification in New Mexico: Barriers, Facilitators, and Implications for Family Stability

Subsidies that reduce childcare costs for low-income families have been linked with benefits including increases in parental employment and use of higher quality care. However, these benefits accrue mainly to families who access subsidies for sustained periods. The recertification process, whereby families must periodically document that they are still eligible for subsidies, has been identified as administratively burdensome and as a barrier to continuous subsidy enrollment. Drawing on a novel survey (n = 501) and interviews (n = 64) with families in New Mexico, this study used logistic regression and thematic analysis to examine family characteristics associated with successful recertification, facilitators and impediments to successful recertification, reasons for subsidy exit, and implications of recertification processes for family stability. Results showed families with full-time employment, fewer adults in the home, and lower incomes had greater odds of recertifying successfully without a gap in benefits. Families’ primary reasons for exiting the subsidy program included changes to their childcare needs (e.g., COVID disruptions or children aging into kindergarten), and changes to their eligibility due to increased income or leaving the workforce. Families reported that recertification was less burdensome when they received clear and consistent communication from eligibility workers or navigation support from their care providers. When subsidy benefits were lost, participants reported adverse consequences for their care arrangements and employment circumstances. They also described adverse outcomes of maintaining their eligibility, such as turning down pay increases.