Cuts to SSBG, TANF Would Eliminate Child Care for 40K Children, Disrupt Care for Millions More

Oct 15, 2026

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Federal budget proposals under consideration would reduce or eliminate key child-and-family supports, especially through the Temporary Assistance for Needy Families (TANF) and the Social Services Block Grant (SSBG). The fact sheet explains how TANF and SSBG contribute to child care and early education, noting their diminished real value and reduced availability in recent years. Estimated impacts include loss of care access for nearly 40,000 children and possible effects on millions more.

LanguageEnglish

CategoryHealthcare

FormatPDF

Pages4

Reading Time10 min

AccessFree to download

Temporary Assistance for Needy Families (TANF)

Social Services Block Grant (SSBG)

What’s at risk?

States with the Highest Number of Affected Children

Cuts to SSBG, TANF Would Eliminate Child Care for 40K Children, Disrupt Care for Millions More Stephanie Schmit & Rachel Wilensky | March 2025 Federal budget proposals currently under consideration threaten resources available for children and families through multiple key programs, including the Temporary Assistance for Needy Families (TANF) and the Social Services Block Grant (SSBG) programs. These programs are vital supports for families with low incomes throughout the country and provide access to essential services, including child care and early education. The Child Care and Development Block Grant (CCDBG) is the primary source of federal funding for child care and early education, but in some states TANF and SSBG provide significant support for child care assistance. The proposed threats to these programs will further restrict access to child care and early education for tens of thousands of children and families. 1 Child care access for close to 40,000 children across the country is at risk in addition to vital supports and services for families if we do not protect SSBG and TANF funding.2 This fact sheet provides background information about SSBG and TANF programs and highlights the number of children whose child care would be impacted by threatened cuts. Temporary Assistance for Needy Families The TANF block grant was created in 1996, replacing the previous Aid to Families with Dependent Children program. States were given broad flexibility to spend TANF funds on a wide range of services and programs for families with low incomes. For example, states could use TANF to pay for child care to allow parents to work or participate in job training programs.3 Because the TANF block grant has not been adjusted for inflation since 1996, its value has eroded significantly. For today’s $16.2 billion block grant to have the same purchasing power it had in 1996, it would have to be twice as large—$32.4 billion.4 Today, TANF has become a major source of child care funding, with states spending $1.3 billion directly on child care services in fiscal year 2023, and over a billion dollars were transferred at the state level to CCDBG to supplement that funding.5 Therefore, proposed cuts to TANF would have significant negative consequences for the number of families who receive child care assistance. Social Services Block Grant The SSBG was created in 1981 as the result of the consolidation of a number of different categorical programs. These programs were combined into a block grant that could be used for a wide range of activities. Funding was set at $2.4 billion in 1982, rising to $2.7 billion by 1985. To have that same purchasing power today, the block grant would need to be $8.38 billion. Instead, SSBG funding was gradually cut in the late 1990s, and has been set at $1.7 billion a year since 2002. Furthermore, due to sequestration that began in 2013, the program has often not received the full appropriated amount.6 In some states, SSBG is a significant source of child care funding. What's at risk? Congressional Republicans are threatening to eliminate all SSBG funding and substantially reduce TANF funding. We estimate this could result in more than 39,000 children across the country losing access to child care assistance that provides essential stability and child development support to children while their parents work or go to school. The states listed in the chart below will be disproportionately harmed. States with the Highest Number of Affected Children 7 | State
Effect of Eliminating SSBG and Cutting TANF by 10% on Child Care Spending
Number of Children Who Will Lose Access to Care | | | | --- | --- | --- | | California | $54,514,875 | 8,220 | | Massachusetts | $80,478,042 | 6,906 | | North Carolina | $50,588,418 | 3,899 | | Pennsylvania | $23,828,108 | 3,814 | | Ohio | $23,610,930 | 2,932 | | Florida | $19,074,992 | 2,545 | | Washington | $21,037,067 | 1,895 | | Wisconsin | $15,262,323 |

FAQs

What is the current status of SSBG funding and why does it matter?

SSBG funding has been gradually cut since the late 1990s and has been set at $1.7 billion a year since 2002. Sequestration beginning in 2013 often prevented the program from receiving its full appropriated amount.

Oct 15, 2026

Upload by James