Military families live by a rhythm few outsiders understand. Life gets measured in PCS cycles, deployment schedules, and the constant rebuilding of support systems. Childcare sits at the center. It decides if a spouse can work, attend school, accept a promotion, or simply keep the family together through another transition.

By the end of 2025, several states took major steps to expand childcare subsidy programs. They increased eligibility and stabilized funding for 2026. These changes were not written solely for military families. However, in states with large installations, long CDC waitlists, and expensive care, military families will feel the impact the most.

Childcare isn’t just a family issue for the military. It’s a direct readiness issue. States are now taking steps to address how these pressures affect military families.

Why States Are Expanding Subsidies Now

Three forces are driving the national shift:

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1. Childcare now costs more than in-state college in most states.

Child Care Aware of America’s 2024 analysis shows that average childcare costs now surpass in-state college tuition in most states.

Prices rise faster than wages. For military families who must restart the childcare search every PCS, the financial strain grows with every move.

2. Childcare remains a top barrier to spouse employment.

Across Blue Star Families’ surveys and DoD talent data, childcare cost and availability consistently emerge as two of the leading reasons military spouses cannot maintain stable employment.

3. States recognize that frequent movers fall through eligibility gaps.

Childcare systems rely on residency, proof of work, and local documentation. These requirements are hard for military families to meet right after a PCS.

By broadening eligibility, raising income limits, or stabilizing provider payments, states make it easier for military families to get care sooner after arrival.

7 States Expanding Childcare Support by 2026

These updates differ by state, but together show a trend. States are lowering childcare costs and modernizing access to childcare. Here’s what’s changing, and why it matters for military families.

1. New Mexico: Universal, No-Cost Childcare

New Mexico became the first state to offer universal free childcare for most families. Income caps are removed, and copays end in November 2025. Full effects continue into 2026.

2. Colorado: High Income Thresholds That Help Dual-Military Families

Colorado’s Child Care Assistance Program (CCCAP) currently serves families earning up to 185% of the federal poverty level.

Families remain eligible for support until their income reaches 85% of the state’s median income. These income thresholds for CCCAP will remain unchanged for the 2025–2026 period.

3. Maryland: Higher Eligibility Limits and Stable Copays

Maryland recently raised income eligibility for its Child Care Scholarship Program. It also extended stabilizing measures through FY26, including limits on copay increases.

4. Washington: Expanded Eligibility Under WCCC

Washington passed HB 2124, which expanded eligibility for the Working Connections Child Care (WCCC) program, effective November 2024. The state also offers clear guidance for how military pay and allowances are treated for subsidy purposes.

5. Virginia: Streamlined Eligibility for Lower-Income Families

Virginia established categorical eligibility for families participating in Medicaid or the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), streamlining income verification for the Child Care Subsidy Program.

The state is also modernizing its administrative systems, with a new attendance platform set to launch in late 2025.

6. North Carolina: Higher Provider Reimbursement Rates

North Carolina’s 2025 budget raises provider payment rates to the 75th percentile. Pilot programs also target childcare capacity and community investment.

7. Texas: Increased Childcare Funding and Local Scholarship Models

Texas continues to address a strained childcare system through new state funding programs, improved state-set provider reimbursement structures, and local scholarship initiatives, such as Austin’s “Raising Travis County” model.

Additional state funding investments and reimbursement rate adjustments are planned for 2025–2026.

What This Means for Military Families in 2026

• PCS moves may become less financially destabilizing: More families will qualify for subsidies soon after arrival. This will reduce the months-long childcare gap many now experience.
• Spouse employment becomes more achievable: Eligibility expansions for families who are working, job-seeking, or in training programs benefit spouses rebuilding their careers post-PCS.
• More families qualify, even those slightly above the median income: States raising income limits open doors for E-6 to O-3 households. These families often earn too much for help but not enough to afford civilian childcare without strain.
• The progress is uneven, but the direction is clear: Federal DoD capacity remains limited. States are starting to share the load, and military families are among the main beneficiaries.

Childcare isn’t a luxury for military families; it’s the infrastructure that makes service possible. As states expand subsidies in 2025–2026, families stationed in key regions may finally gain the affordability and access they’ve lacked for years.

How to Apply for State Childcare Subsidies When You PCS

Step 1: Look Up Your State’s Program

Search for the official childcare subsidy or childcare assistance program in your state of residence. Use the state’s .gov site or the early childhood agency page.

Step 2: Check Eligibility Before You Move

Most states require:

• Residency in the state

• Household income below a certain threshold

• Work, job-seeking, or enrollment in school/training

Review requirements 60–90 days before PCS for smoother planning.

Step 3: Gather the Right Documents

Have digital copies ready for upload:

• PCS orders

• LES or recent pay stubs

• Proof of residency (lease, housing assignment)

• Child identification documents

• Proof of spouse employment, job search, or school enrollment

Step 4: Apply Online — Then Call

Submit your application through the state portal, then contact the local office. Mention that you recently PCSed and are seeking care to maintain employment.

Step 5: Coordinate With DoD Fee Assistance

If you’re using MCCYN, MCCYN-PLUS, or in-home care pilots, ask how state subsidies interact with DoD assistance. Some families can benefit from both.

Step 6: Monitor Your Portal and Mail

Approvals, requests for documentation, and provider authorizations often come with short deadlines. Check regularly to avoid delays.

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