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Federal Childcare Subsidies by State – 2026 Study

Byline profile imageWritten by Jaclyn DeJohn, CFP®
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With recent fraud investigations ongoing in Minnesota and beyond – often allegedly centered on childcare businesses and other programs for needy children – followed by a new announcement of free daycares from New York City Mayor Zohran Mamdani, taxpayers may be eager to understand where their tax dollars go.

According to the latest data from the federal government’s Office of Child Care, just over $29 billion was spent on childcare subsidies in fiscal year 2022, with money issued from both federal and state government sources over the last few years. This funding can be assigned to a multitude of categorical intents, including to ensure quality programs, staff training, administrative costs, and more.

With this in mind, SmartAsset ranked each U.S. state based on the number of federal dollars spent on subsidies to childcare centers per resident younger than five years old.

Key Findings

  • New Mexico has the highest federal childcare subsidies at $1,782 per child. A total of $187.1 million in federal subsidies was spent in 2022 on behalf of 104,994 children under age five residing in the state. West Virginia had the second highest childcare subsidies per capita at $1,651 for each of 87,469 young children. 
  • Federal childcare subsidies are lowest in these states. South Dakota reported the lowest subsidies per capita in 2022 at $482 spent for each of 57,246 children under five. Virginia had the second-lowest rate of subsidies at $546 per child, followed by Nevada at $564 and Minnesota at $629.
  • Massachusetts and Minnesota among the most expensive for childcare. Nationwide, the weekly median cost of childcare ranges from $108 to $462, depending on location and age of the child. Infant care is most expensive, with Massachusetts and Minnesota ranking first and second-highest in this metric at $462 and $390 per week, respectively. Toddler prices in these states come in at $409 and $348 per week, while preschoolers cost a median of $310 in Massachusetts and $309 in Minnesota.
  • Median childcare is less than $150 per week in these states. Regardless of child age, weekly median childcare costs clocked in lowest in Mississippi, where a week of infant care is $119, while a week of toddler or preschooler care is $108. Alabama is the second most affordable with infant care at $136, toddler care at $134, and preschooler care at $126 weekly. In South Dakota, the median price is $150 for infants and toddlers, and $136 for preschoolers.

Federal Childcare Subsidies and Cost of Childcare by State

States are ranked based on the federal subsidy money spent on childcare purposes per resident under age five in fiscal year 2022.

  1. New Mexico
  • Federal subsidies per resident child: $1,782.21
  • Resident children under 5: 104,994
  • Total federal subsidies: $187,121,763
  • Weekly median price, infant care: NA
  • Weekly median price, toddler care: NA
  • Weekly median price, preschool care: NA
  1. West Virginia
  • Federal subsidies per resident child: $1,651.20
  • Resident children under 5: 87,469
  • Total federal subsidies: $144,429,085
  • Weekly median price, infant care: $167.49
  • Weekly median price, toddler care: $159.10
  • Weekly median price, preschool care: $164.85
  1. Massachusetts
  • Federal subsidies per resident child: $1,424.21
  • Resident children under 5: 342,252
  • Total federal subsidies: $487,438,791
  • Weekly median price, infant care: $461.55
  • Weekly median price, toddler care: $408.50
  • Weekly median price, preschool care: $310.00
  1. Delaware
  • Federal subsidies per resident child: $1,308.53
  • Resident children under 5: 54,058
  • Total federal subsidies: $70,736,572
  • Weekly median price, infant care: $280.28
  • Weekly median price, toddler care: $199.21
  • Weekly median price, preschool care: $210.26
  1. Michigan
  • Federal subsidies per resident child: $1,300.33
  • Resident children under 5: 536,805
  • Total federal subsidies: $698,023,298
  • Weekly median price, infant care: $173.20
  • Weekly median price, toddler care: $173.20
  • Weekly median price, preschool care: $155.65
  1. Idaho
  • Federal subsidies per resident child: $1,287.86
  • Resident children under 5: 111,816
  • Total federal subsidies: $144,003,566
  • Weekly median price, infant care: $166.41
  • Weekly median price, toddler care: $154.45
  • Weekly median price, preschool care: $140.26
  1. New Jersey
  • Federal subsidies per resident child: $1,282.96
  • Resident children under 5: 513,333
  • Total federal subsidies: $658,584,991
  • Weekly median price, infant care: $313.73
  • Weekly median price, toddler care: $302.99
  • Weekly median price, preschool care: $302.99
  1. Arkansas
  • Federal subsidies per resident child: $1,247.05
  • Resident children under 5: 177,765
  • Total federal subsidies: $221,682,300
  • Weekly median price, infant care: NA
  • Weekly median price, toddler care: NA
  • Weekly median price, preschool care: NA
  1. Louisiana
  • Federal subsidies per resident child: $1,234.15
  • Resident children under 5: 270,937
  • Total federal subsidies: $334,377,637
  • Weekly median price, infant care: $153.33
  • Weekly median price, toddler care: $147.27
  • Weekly median price, preschool care: $140.89
  1. Vermont
  • Federal subsidies per resident child: $1,187.22
  • Resident children under 5: 27,875
  • Total federal subsidies: $33,093,721
  • Weekly median price, infant care: NA
  • Weekly median price, toddler care: NA
  • Weekly median price, preschool care: NA
  1. Oklahoma
  • Federal subsidies per resident child: $1,070.86
  • Resident children under 5: 240,173
  • Total federal subsidies: $257,190,682
  • Weekly median price, infant care: $215.46
  • Weekly median price, toddler care: $186.45
  • Weekly median price, preschool care: $186.45
  1. Hawaii
  • Federal subsidies per resident child: $1,037.10
  • Resident children under 5: 78,927
  • Total federal subsidies: $81,855,243
  • Weekly median price, infant care: $365.77
  • Weekly median price, toddler care: $263.08
  • Weekly median price, preschool care: $263.08
  1. Alabama
  • Federal subsidies per resident child: $1,021.00
  • Resident children under 5: 284,064
  • Total federal subsidies: $290,028,771
  • Weekly median price, infant care: $136.01
  • Weekly median price, toddler care: $134.35
  • Weekly median price, preschool care: $125.60
  1. Georgia
  • Federal subsidies per resident child: $1,007.30
  • Resident children under 5: 621,126
  • Total federal subsidies: $625,660,993
  • Weekly median price, infant care: $205.00
  • Weekly median price, toddler care: $187.80
  • Weekly median price, preschool care: $179.00
  1. Mississippi
  • Federal subsidies per resident child: $1,004.25
  • Resident children under 5: 169,303
  • Total federal subsidies: $170,022,469
  • Weekly median price, infant care: $118.68
  • Weekly median price, toddler care: $108.02
  • Weekly median price, preschool care: $108.02
  1. Florida
  • Federal subsidies per resident child: $983.38
  • Resident children under 5: 1,101,350
  • Total federal subsidies: $1,083,048,050
  • Weekly median price, infant care: $225.00
  • Weekly median price, toddler care: $180.00
  • Weekly median price, preschool care: $165.00
  1. Connecticut
  • Federal subsidies per resident child: $967.03
  • Resident children under 5: 178,453
  • Total federal subsidies: $172,569,544
  • Weekly median price, infant care: $350.00
  • Weekly median price, toddler care: $350.00
  • Weekly median price, preschool care: $285.00
  1. Maine
  • Federal subsidies per resident child: $962.89
  • Resident children under 5: 61,018
  • Total federal subsidies: $58,753,751
  • Weekly median price, infant care: $230.00
  • Weekly median price, toddler care: $213.33
  • Weekly median price, preschool care: $194.00
  1. Washington
  • Federal subsidies per resident child: $959.66
  • Resident children under 5: 421,722
  • Total federal subsidies: $404,708,430
  • Weekly median price, infant care: $357.31
  • Weekly median price, toddler care: $249.06
  • Weekly median price, preschool care: $249.06
  1. Montana
  • Federal subsidies per resident child: $956.68
  • Resident children under 5: 57,024
  • Total federal subsidies: $54,553,556
  • Weekly median price, infant care: $220.81
  • Weekly median price, toddler care: $230.06
  • Weekly median price, preschool care: $197.31
  1. Rhode Island
  • Federal subsidies per resident child: $949.44
  • Resident children under 5: 51,955
  • Total federal subsidies: $49,328,142
  • Weekly median price, infant care: $289.59
  • Weekly median price, toddler care: $279.20
  • Weekly median price, preschool care: $245.26
  1. Iowa
  • Federal subsidies per resident child: $921.33
  • Resident children under 5: 180,010
  • Total federal subsidies: $165,849,363
  • Weekly median price, infant care: $165.98
  • Weekly median price, toddler care: $143.02
  • Weekly median price, preschool care: $143.02
  1. Indiana
  • Federal subsidies per resident child: $918.42
  • Resident children under 5: 399,031
  • Total federal subsidies: $366,477,545
  • Weekly median price, infant care: NA
  • Weekly median price, toddler care: NA
  • Weekly median price, preschool care: NA
  1. Alaska
  • Federal subsidies per resident child: $916.78
  • Resident children under 5: 46,497
  • Total federal subsidies: $42,627,462
  • Weekly median price, infant care: $361.90
  • Weekly median price, toddler care: $337.18
  • Weekly median price, preschool care: $289.75
  1. North Dakota
  • Federal subsidies per resident child: $890.47
  • Resident children under 5: 47,844
  • Total federal subsidies: $42,603,558
  • Weekly median price, infant care: $213.81
  • Weekly median price, toddler care: $194.98
  • Weekly median price, preschool care: $181.00
  1. Oregon
  • Federal subsidies per resident child: $875.07
  • Resident children under 5: 199,584
  • Total federal subsidies: $174,649,784
  • Weekly median price, infant care: $329.44
  • Weekly median price, toddler care: $302.47
  • Weekly median price, preschool care: $237.04
  1. South Carolina
  • Federal subsidies per resident child: $848.53
  • Resident children under 5: 281,426
  • Total federal subsidies: $238,797,466
  • Weekly median price, infant care: $198.93
  • Weekly median price, toddler care: $185.03
  • Weekly median price, preschool care: $181.12
  1. Tennessee
  • Federal subsidies per resident child: $835.30
  • Resident children under 5: 402,215
  • Total federal subsidies: $335,971,131
  • Weekly median price, infant care: $211.67
  • Weekly median price, toddler care: $146.35
  • Weekly median price, preschool care: $146.35
  1. Missouri
  • Federal subsidies per resident child: $828.27
  • Resident children under 5: 349,648
  • Total federal subsidies: $289,603,974
  • Weekly median price, infant care: NA
  • Weekly median price, toddler care: NA
  • Weekly median price, preschool care: NA
  1. Wisconsin
  • Federal subsidies per resident child: $824.92
  • Resident children under 5: 309,244
  • Total federal subsidies: $255,101,936
  • Weekly median price, infant care: $293.00
  • Weekly median price, toddler care: $258.75
  • Weekly median price, preschool care: $258.75
  1. Arizona
  • Federal subsidies per resident child: $820.57
  • Resident children under 5: 393,413
  • Total federal subsidies: $322,824,548
  • Weekly median price, infant care: $270.00
  • Weekly median price, toddler care: $210.00
  • Weekly median price, preschool care: $210.00
  1. Kentucky
  • Federal subsidies per resident child: $812.13
  • Resident children under 5: 260,433
  • Total federal subsidies: $211,504,429
  • Weekly median price, infant care: $151.30
  • Weekly median price, toddler care: $134.40
  • Weekly median price, preschool care: $134.40
  1. Wyoming
  • Federal subsidies per resident child: $798.51
  • Resident children under 5: 30,444
  • Total federal subsidies: $24,309,836
  • Weekly median price, infant care: $161.17
  • Weekly median price, toddler care: $155.62
  • Weekly median price, preschool care: $155.62
  1. Pennsylvania
  • Federal subsidies per resident child: $793.10
  • Resident children under 5: 668,734
  • Total federal subsidies: $530,372,101
  • Weekly median price, infant care: NA
  • Weekly median price, toddler care: NA
  • Weekly median price, preschool care: NA
  1. North Carolina
  • Federal subsidies per resident child: $788.08
  • Resident children under 5: 584,492
  • Total federal subsidies: $460,627,170
  • Weekly median price, infant care: $202.52
  • Weekly median price, toddler care: $168.77
  • Weekly median price, preschool care: $133.82
  1. Utah
  • Federal subsidies per resident child: $785.12
  • Resident children under 5: 228,464
  • Total federal subsidies: $179,371,727
  • Weekly median price, infant care: $226.27
  • Weekly median price, toddler care: $183.87
  • Weekly median price, preschool care: $168.06
  1. Kansas
  • Federal subsidies per resident child: $782.32
  • Resident children under 5: 176,673
  • Total federal subsidies: $138,214,795
  • Weekly median price, infant care: $157.33
  • Weekly median price, toddler care: $148.00
  • Weekly median price, preschool care: $137.60
  1. New York
  • Federal subsidies per resident child: $781.84
  • Resident children under 5: 1,055,455
  • Total federal subsidies: $825,191,780
  • Weekly median price, infant care: $300.00
  • Weekly median price, toddler care: $277.00
  • Weekly median price, preschool care: $259.00
  1. Ohio
  • Federal subsidies per resident child: $767.78
  • Resident children under 5: 661,196
  • Total federal subsidies: $507,652,972
  • Weekly median price, infant care: $295.00
  • Weekly median price, toddler care: $265.00
  • Weekly median price, preschool care: $232.00
  1. Texas
  • Federal subsidies per resident child: $748.03
  • Resident children under 5: 1,881,718
  • Total federal subsidies: $1,407,574,435
  • Weekly median price, infant care: $185.00
  • Weekly median price, toddler care: $172.00
  • Weekly median price, preschool care: $167.00
  1. Colorado
  • Federal subsidies per resident child: $727.51
  • Resident children under 5: 305,063
  • Total federal subsidies: $221,937,618
  • Weekly median price, infant care: $377.40
  • Weekly median price, toddler care: $325.50
  • Weekly median price, preschool care: $276.35
  1. California
  • Federal subsidies per resident child: $695.28
  • Resident children under 5: 2,118,386
  • Total federal subsidies: $1,472,877,994
  • Weekly median price, infant care: $379.21
  • Weekly median price, toddler care: $236.33
  • Weekly median price, preschool care: $224.99
  1. Maryland
  • Federal subsidies per resident child: $693.79
  • Resident children under 5: 349,193
  • Total federal subsidies: $242,267,667
  • Weekly median price, infant care: $327.39
  • Weekly median price, toddler care: $230.78
  • Weekly median price, preschool care: $230.78
  1. Illinois
  • Federal subsidies per resident child: $690.94
  • Resident children under 5: 674,211
  • Total federal subsidies: $465,839,492
  • Weekly median price, infant care: $278.33
  • Weekly median price, toddler care: $220.00
  • Weekly median price, preschool care: $189.17
  1. Nebraska
  • Federal subsidies per resident child: $659.58
  • Resident children under 5: 121,107
  • Total federal subsidies: $79,879,421
  • Weekly median price, infant care: $243.75
  • Weekly median price, toddler care: $226.13
  • Weekly median price, preschool care: $205.00
  1. New Hampshire
  • Federal subsidies per resident child: $635.52
  • Resident children under 5: 62,666
  • Total federal subsidies: $39,825,235
  • Weekly median price, infant care: $300.05
  • Weekly median price, toddler care: $284.61
  • Weekly median price, preschool care: $249.47
  1. Minnesota
  • Federal subsidies per resident child: $629.42
  • Resident children under 5: 328,095
  • Total federal subsidies: $206,510,840
  • Weekly median price, infant care: $390.00
  • Weekly median price, toddler care: $347.56
  • Weekly median price, preschool care: $309.00
  1. Nevada
  • Federal subsidies per resident child: $564.24
  • Resident children under 5: 172,575
  • Total federal subsidies: $97,374,354
  • Weekly median price, infant care: $275.63
  • Weekly median price, toddler care: $240.47
  • Weekly median price, preschool care: $229.27
  1. Virginia
  • Federal subsidies per resident child: $546.17
  • Resident children under 5: 481,682
  • Total federal subsidies: $263,081,360
  • Weekly median price, infant care: $246.72
  • Weekly median price, toddler care: $194.52
  • Weekly median price, preschool care: $186.75
  1. South Dakota
  • Federal subsidies per resident child: $481.98
  • Resident children under 5: 57,246
  • Total federal subsidies: $27,591,155
  • Weekly median price, infant care: $150.00
  • Weekly median price, toddler care: $150.00
  • Weekly median price, preschool care: $136.40

Data and Methodology

Federal subsidy expenditure data for the duration of fiscal year 2022 comes from the federal government’s Office of Child Care. Data includes total expenditures (which may include leftover monies from previous award years) across several intent categories for childcare, including staff training, program quality, and more. Median weekly childcare costs come from the Department of Labor’s National Database of Childcare Prices. Population data for children under age five in each state comes from the U.S. Census Bureau 1-Year American Community Survey for calendar year 2022.

Questions about our study? Contact us at press@smartasset.com

Photo credit: ©iStock.com/Alessandro Mari