Making the Connections: Access to Quality, Affordable Child Care in Arizona

For countless working parents of young children in Arizona, conversations often center around two essential questions: Who will care for my children while I am at work? And will I be able to afford it? A report by the Common Sense Institute from December 2025 highlighted that child care costs have surged by over 60% since 2018, while the number of licensed providers has nearly halved in the past two decades. This situation poses a significant threat to the state's economic vitality, leaving families without clear solutions.

The Arizona Department of Economic Security (DES) and the Governor’s Office are working to build a more resilient system—one that prioritizes access for all parents across the economic continuum, including low-income working families, vulnerable children, and the network of child care providers who serve them.

Bright Futures AZ: A Year of Historic Investment

Over the last 12 months, Governor Katie Hobbs has championed the "Bright Futures AZ" initiative, recognizing child care as essential infrastructure to help Arizona thrive. The Governor’s Arizona Promise Budget included $125.9 million in state and federal funds for child care, the largest investment of general funds for child care since the Great Recession.

Key wins from the last year include:

• Waiting List Progress: Between July 2025 and February 2026, the state successfully released over 1,500 children from the child care assistance waiting list, prioritizing families living at or below 100% of the Federal Poverty Level.
• Direct Provider Relief: Recognizing that providers are small businesses, the Governor invested $1 million into child care licensing fees—cutting annual costs by 20% for existing programs and 50% for new ones to encourage market entry.
• The Workforce behind the Workforce: The Governor directed $1 million in American Rescue Plan Act funding to DES to support the Bright Futures AZ Scholarship Program. To date, 315 child care tuition scholarships have been granted to 221 early childhood educators to continue their vital work.
• Bridging the Gap: The launch of the $3 million Out-of-School Time Grant Program will help working families cover child care costs by up to two-thirds during school breaks and summer months, a time when many low-income parents are traditionally forced to break from the workforce.

Protecting Access to Quality Early Childhood Education

DES acknowledges the necessity of establishing guidelines to ensure program integrity and stabilize child care provider networks. As the Lead Agency for the federal Child Care and Development Fund (CCDF), DES promotes parental employment, economic stability, and high-quality care. Moreover, we prioritize consistent and thorough evaluation practices that protect child care investments and comply with federal regulations. For this reason, each year, our child care team members in partnership with the Arizona Department of Health Services complete in-person site visits for every licensed center, group home, and in-home child care provider.

Through strategic partnerships and targeted initiatives, DES is dedicated to supporting both families and providers. By cultivating a strong network of quality child care options, we aim to ease the burden on working parents while contributing to the long-term success of children throughout the state.  

Efforts such as Quality First assessments and the Arizona Early Childhood Educator Apprenticeship Pathway are vital in enhancing educators' skills and ensuring that the environments where children spend their formative years are safe and enriching. Furthermore, DES's commitment to reducing suspensions and expulsions through programs like AZ STEPS showcases our dedication to fostering inclusive and supportive early learning environments. And by offering comprehensive resources to families through Child Care Resource & Referral, alongside a new user-friendly website, we are making significant progress in helping parents find and access quality care options that suit their needs. 

Our collective endeavors not only improve the current child care landscape but also lay the foundation for a future where every child in Arizona has the chance to thrive in a nurturing educational setting.

The Path Ahead: Network Sustainability

While we are moving the needle on improving access to affordable, quality child care, it is clear that additional investments are critical to meet the needs of Arizona’s children, working families, and our economy. Currently, over 11,000 children remain on the waiting list for DES Child Care Assistance, underscoring that while progress is being made, the high costs for quality child care and employers' and parents’ need still outstrips supply.

Moving forward, the state is looking toward innovative public-private partnerships. This includes expanding the Arizona Microbusiness Loan Program specifically for child care entrepreneurs and exploring corporate tax incentives for businesses that provide on-site care.

Conclusion: An Economic Imperative

The child care industry is a crucial part of the economy. Expanding access to affordable, quality child care in Arizona could generate over 100,000 new jobs over the next five years. According to an article published by First Things First, this expansion is estimated to increase the state's economic output by $12.4 billion across all sectors through increased workforce participation.  

Arizona’s strategy is clear: Child care is a public necessity. Investing in quality early childhood education is essential for family and economic stability. The goal is a state where every child has a high-quality, safe place to learn, and every parent has the freedom to build and sustain a career.

Michael