January 11, 2023

Mass. childcare subsidy program is inefficient, report says

Jess Aloe ,

Boston Business Journal

The Massachusetts childcare subsidy program is complicated, inefficient and fails the families who need it most, according to a new analysis released Wednesday by the Massachusetts Taxpayers Foundation. The subsidy program provides vouchers for low-income families but is a complex system that serves three different eligible populations with two forms of subsidies and uses multiple funding streams.

The report found that the method for calculating rates for providers does not cover the actual costs of providing care, and providers often lose money when they accept subsidies. This means the subsidy program has not led to increased wages for providers or additional subsidized slots in the market.