Katie Hobbs Commits $1 Million to Lower Child Care Costs

Governor Katie Hobbs (D-AZ) announced a $1 million investment to reduce licensing costs for child care providers across Arizona as part of her Bright Futures AZ initiative to address the state's child care access issues.

The funding will reduce annual licensing fees by 20% for existing child care providers and 50% for new programs. The discounts will then apply automatically through the Arizona Department of Health Services licensing portal when providers submit their applications.

The state currently has more than 2,500 licensed child care providers. Annual licensing fees range up to $2,575, depending on program size. The state faces a shortage of child care spots, while providers report higher operational costs, including supplies, insurance, and staffing.

The fee reduction applies to all licensed programs statewide, including in-home providers, child care centers, small businesses, nonprofits, and faith-based organizations. Additionally, the investment uses federal American Rescue Plan Act (ARPA) funds.

Additional Support

Child care leaders across Arizona support the initiative.

Margaret Bernal, Chief of Child Care Licensing at ADHS, said the fee offsets help providers continue serving children and communities. Barbie Prinster of the Arizona Early Childhood Education Association called it meaningful relief. At the same time, Kelley Murphy of the Arizona Early Childhood Alliance said it will reduce business costs for quality programs serving working families.

Earlier this year, Governor Hobbs announced funding to create 900 additional child care spots for Arizona children. 

Her budget allocated over $125 million in state and federal funds for child care, which she emphasized as the most significant general fund investment in child care since the Great Recession.

The governor stated that the funding aims to "unlock opportunity and security for more Arizona families" while providing relief to current providers and supporting new program development.