Gov. Tony Evers and Republican lawmakers clashed for months over child care funding, with Evers insisting that continued support was essential to avoid widespread closures. The childcare industry dominated Joint Finance Committee hearings statewide, with providers and parents calling on lawmakers to prevent mass closures and support affordable access.
The final budget compromise includes over $300 million in spending aimed at stabilizing the sector, expanding access, and launching the first-ever state-funded early childhood program.
To save the industry from collapse during the pandemic, Gov. Evers used hundreds of millions in one-time federal COVID relief funds to launch the “Child Care Counts” program, which issued direct payments to child care centers to cover wages, training, and overhead costs. But with those federal dollars exhausted and Evers seeking $500 million in state funding to sustain the program in his February budget, Republicans rejected the proposal and refused to continue Child Care Counts at that scale.
The budget instead sets aside $110 million in direct monthly payments to providers to help stabilize operations, reduce waitlists, and lower costs for working families. These funds will serve as a scaled-back transition from the original Child Care Counts model. (RELATED: Budget to Bring Major Tax Relief to Middle Class Wisconsinites)
A signature piece of the deal is a $66 million investment in the new “Get Kids Ready” initiative—Wisconsin’s first child care program funded entirely by general purpose revenue. The program supports providers serving four-year-olds using curriculum aligned with DPI’s early learning standards and marks a historic step toward permanent state investment in early childhood development.
Another $123 million is directed toward raising rates under the Wisconsin Shares Child Care Subsidy Program. The rate hike ensures compliance with state law requiring low-income families be able to access 75% of local child care slots, further reducing cost burdens for working parents.
New Reforms Expand Capacity, Raise Infant and Toddler Support
A pilot program backed by $28.6 million will pay providers $200 monthly for every infant under 18 months and $100 for each toddler between 18 and 30 months. The funds will support expanded capacity under the Wisconsin Shares program, with new staffing rules allowing providers to care for up to seven toddlers per teacher—matching ratios in peer states like Minnesota.
Other initiatives include:
– $2 million in competitive grants to help child care centers expand capacity, obtain licensing, hire substitutes, and launch an online staffing platform
– $2 million to strengthen Wisconsin’s Child Care Resource and Referral Agencies (CCR&Rs), which help families find care and support providers
– Policy changes that allow “large family care centers” to serve up to 12 children
– Standardizing the minimum age for assistant child care teachers at 16 years, while maintaining training requirements
The governor and legislature remained far apart on child care for much of the negotiation period, with Evers repeatedly warning that allowing Child Care Counts to expire without a replacement would cripple the industry. The budget’s final structure reflects a middle ground—phasing out federal aid while embedding state-funded support in permanent law. (RELATED: UW Regents Unanimously Approve Third Straight Tuition Increase)