Governor Katie Hobbs Invests $1 Million to Reduce Child Care Licensing Fees

Part of Bright Futures AZ Initiative to make child care more affordable and accessible for Arizona families

Phoenix, AZ – Today, Governor Katie Hobbs announced $1 million to support Arizona child care providers and encourage the creation of new child care programs. Part of her Bright Futures AZ initiative to improve access to child care, this investment aims to increase child care availability and support child care providers by lowering costs and expanding the network of providers that serve Arizona families. 

“Access to child care is a pillar of the Arizona Promise,” said Governor Katie Hobbs. “Many child care providers are small businesses or nonprofit organizations who are experiencing higher costs across the board. This funding unlocks opportunity and security for more Arizona families by offering relief to current providers and supporting new providers who create child care programs.”

As she has traveled across the state, Governor Hobbs has heard from child care providers about the rising expenses they face. Increased costs for supplies, insurance, and staffing, among other things, have made it difficult for many providers to maintain operations. The state is also facing a child care shortage, making it difficult for families to find child care. In response to both of these needs, Governor Hobbs is investing $1 million of ARPA funds to reduce the cost of annual licensing fees for existing child care providers by 20% and for new providers by 50%. 

The discount is available to all licensed programs in the state and is automatically reflected in the ADHS licensing portal. When child care providers submit their application, they can see the reduced licensing rate applied. 

Currently there are more than 2,500 licensed child care providers across Arizona, and annual licensing fees can cost up to $2,575 depending on the size of the program. These savings will impact all licensed Arizona child care providers, including in-home, center-based, small business, nonprofit, or faith-based providers, with the goal of helping these programs reduce their operating costs and keep their doors open.

Earlier this year, Governor Hobbs announced child care spots for 900 more Arizona children. The Governor’s Arizona Promise Budget, which allocated more than $125 million in state and federal funds for child care, included the largest investment of general funds for child care since the Great Recession.

“As a former Child Care Director, I am especially aware of how hard Providers work to provide quality care for children, while still trying to stay within their financial means,” said Margaret Bernal, Chief, Child Care Licensing, ADHS. “This is a great opportunity to support providers with fee off-sets, enabling them to continue providing more services for the children, and community.”

“This 20% discount on licensing fees provides much needed relief for child care providers. It is a meaningful step toward easing financial pressure so they can focus on what matters most - providing safe, nurturing, and high-quality care for our youngest learners,” said Barbie Prinster, Executive Director of the Arizona Early Childhood Education Association.

“This vital help comes at the right time for families and child care providers across Arizona. It will help reduce the cost of doing business for high quality programs and allow them to continue serving hard working families. In the end, our children benefit from the investment,” said Kelley Murphy, Director, Arizona Early Childhood Alliance.

Information on how to secure a fee reduction can be found here.

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