Child care funds partially extended in WI, with impact uncertain

Wisconsin’s “Child Care Counts," a pandemic-era program established by the federal government to support the return of parents to work, received a partial extension under the 2025-27 budget, signed by Governor Evers on July 2, 2025. The extension, which allocates $110 million to the state's 4700 eligible child care programs through June of 2026, represents only 25% of what was requested and about one-third of what it had been receiving. Therefore, the outlook for Wisconsin parents who rely on these programs is uncertain, with potential closures and tuition increases in play.

Why it Matters

Affordable, accessible child care is essential for women’s full workforce participation and economic mobility. Insufficient support impacts women disproportionately (as workers and caregivers) and tightens the labor supply. In Wisconsin, rural families are the most likely to see child care programs closed as a result of the lower spending, while working parents in urban communities will likely see their costs go up.

Background

Child Care Counts launched in 2021 with significant federal and state funding to stabilize day care providers. The 2025 budget commits ~$330 million to early-care initiatives, including this program, but funding beyond June of 2026 remains uncertain.