Bill > A5439

Introduced Session

This bill establishes a grant program to finance the construction of new child care facilities by nonprofit, community-based child care providers. The grant program will be financed with the $30 million in federal "Coronavirus State Fiscal Recovery Fund" monies, appropriated, pursuant to the FY 2023 Appropriations Act, to the New Jersey Economic Development Authority (NJEDA) for the creation of a Child Care Facilities Fund. It is the sponsor's intent that the grant program spur the creation of new child care slots, for children ages five years and younger, in the State's child care deserts. Within 60 days of the bill's effective date, the Chief Executive Officer of the NJEDA will seek applications and, from those received, select a Community Development Finance Institution (CDFI) to: 1) manage the grant application, review, and award processes; 2) disburse grants awarded to child care providers; 3) provide technical assistance to grant recipients; 4) help grant recipients prepare their new facilities for evaluation under the Grow NJ Kids program; and 5) compile and report any program benchmarks or outcomes data that the NJEDA may require. Under the bill, the designated CDFI is required to have experience in early childhood facilities financing, in order to ensure the equitable disbursement of grant funds and encourage the participation of nonprofit, community-based child care providers. The bill requires the CDFI, within 120 days of designation, to award one-time, competitive grants to child care providers for the construction of new child care facilities. The bill also stipulates that the grant program will expire once the available funding has been expended. The bill provides that an eligible grant applicant: 1) is a nonprofit, community-based organization; 2) has at least five years' experience in providing child care for children ages five years and younger; 3) will commit to participate in, and prioritize enrollment of children eligible for, the State's child care subsidy program; 4) will agree to participate in the Grow NJ Kids program; and 5) will consent to collect any de-identified data that the NJEDA requires. The CDFI is required to give preference to applicants that: 1) have experience in providing services to children and families who require additional socio-economic supports and services; 2) will commit to locating a new child care facility in a child care desert; and 3) will operate a child care facility that has a minimum capacity of 60 children, of whom 25 percent will be children who receive child care subsidies. The bill also prohibits the use of grant funds for the purchase of land or buildings. Of the $30 million in federal "Coronavirus State Fiscal Recovery Fund" monies appropriated to the NJEDA for the creation of a Child Care Facilities Fund, pursuant to the FY 2023 Appropriations Act, the bill awards to the designated CDFI: 1) $26 million for competitive grant awards; 2) $1.0 million for the provision of technical assistance to grantees; and 3) $3 million for the grant program's administrative costs.

AI Summary

Committee Categories

Eliana Pintor Marin (D)*, 

Introduced, Referred to Assembly Women and Children Committee (on 05/11/2023)

Official Document