New Jersey Assembly Bill A5439

New Jersey 2022-2023 Regular Session

• Introduced: 5/11/23
• Refer: 5/11/23

Caption

Establishes competitive grant program for new child care facility construction, using $30 million in federal "Coronavirus State Fiscal Recovery Fund" monies appropriated to EDA pursuant to P.L.2022, c.49.

Impact

The bill assigns the New Jersey Economic Development Authority (NJEDA) the responsibility of managing the grant program, including the selection of a Community Development Finance Institution (CDFI) to oversee grant applications and disbursement of funds. Eligible organizations for receiving grants must be nonprofit entities with a minimum of five years of experience in child care, and they are required to prioritize enrollment of children eligible for state-subsidized child care assistance. This stipulation aims to ensure that the most vulnerable populations benefit from the program, addressing both supply and accessibility of child care.

Summary

Bill A5439 establishes a competitive grant program aimed at financing the construction of new child care facilities in New Jersey. This initiative is specifically designed to combat the issue of child care deserts, areas where the demand for child care significantly exceeds the available slots. The program is funded through $30 million allocated from the federal Coronavirus State Fiscal Recovery Fund, following the Fiscal Year 2023 Appropriations Act. The objective is to increase the number of child care spaces for children ages five years and younger, ultimately enhancing the state's capacity for high-quality child care services.

Contention

While the bill has the potential to positively impact child care availability, there may be contention regarding the specific parameters set for eligible grantees. Some voices may argue that the restrictions, such as the prohibition against using grant funds for purchasing land and buildings, might limit some nonprofit organizations' ability to effectively establish facilities. Moreover, aiming to prioritize the enrollment of children needing socio-economic support could create concerns about the feasibility for some organizations to meet the criteria while ensuring sustainable operations post-construction.