$1 Billion Investment in New Jersey’s Child Care, Boosted with Additional $17 Million

The Murphy Administration's latest funding aims to enhance childcare facilities statewide, marking one of the largest state investments in the U.S.

MORRISTOWN, NJ – Governor Phil Murphy today spotlighted a landmark $1 billion commitment by his administration to expand access to affordable, high-quality child care across New Jersey. Additionally, the governor unveiled a new injection of $17 million into the New Jersey Economic Development Authority (NJEDA) Child Care Facilities Improvement Program. This boost increases the state's total investment in childcare infrastructure to over $140 million, setting a national precedent for state-level childcare support.

The announcement was made at The Kids Palace II, a child care center in West Orange that has significantly benefited from NJEDA funding, enabling it to extend its services.

This significant financial commitment is part of the Murphy Administration’s broader strategy to bolster the essential childcare sector in the state. The NJEDA’s Child Care Facilities Improvement Program offers grants up to $200,000 to eligible providers for enhancements that foster high-quality early childhood learning environments. So far, the program has allocated $85 million in grants to more than 400 childcare centers, supporting over 34,000 children and employing upwards of 8,500 staff members. With today’s additional funding, another 200 centers are expected to receive financial awards, bringing the total to over 600 centers across all 21 New Jersey counties.

“Affordable, exceptional child care is a vital part of a stronger and fairer New Jersey economy, and the increased funding announced today will strengthen our state’s economic security and provide equitable opportunities to working parents,” said Governor Phil Murphy. “Increased access to high-quality child care allows more parents to return to the workforce, bolstering New Jersey’s economic growth and competitiveness."

A key aspect of this initiative is the focus on expanding services for infants and toddlers, enhancing the overall capacity of childcare centers. The additional $17 million from the Federal American Rescue Plan State Fiscal Recovery Fund announced today ensures that all eligible centers applying to the program's first phase will be approved. This phase is now closed to new applicants.

“Reliable and high-quality child care services are critical to the growth and success of New Jersey’s economy; however, too often financially stretched child care providers forgo making necessary investments in facility upgrades,” said NJEDA Chief Executive Officer Tim Sullivan.

All construction and renovation activities funded through these grants are carried out by contractors registered with the New Jersey Department of Labor, adhering to strict standards including prevailing wage and affirmative action requirements.

“A thriving, modern, and robust child care industry is a key component in supporting working families in New Jersey,” said Department of Children and Families Commissioner Christine Norbut Beyer.

The impact of these investments is already visible across the state. For instance, The Kids Palace II received a grant of $189,300 which was used to install essential safety systems such as sprinklers and alarms, permitting an expansion of its license to include infant care. This center has also benefited from multiple other state grants, demonstrating the comprehensive support being extended to New Jersey’s childcare providers.