A joint hearing of the Ways and Means Committee and the Appropriations Early Education and Economic Development Subcommittee on Oct. 31 focused on Maryland's childcare scholarship program and an ongoing enrollment freeze that officials say remains in place despite an expectation it would end in September.

"It is now October, and that freeze has not been lifted," Chair Vanessa Atterberry said in opening remarks, noting that scholarship enrollment has grown by "more than 200%" over four years and that the freeze is preventing families from accessing care.

The Department of Legislative Services (DLS) told lawmakers that the childcare scholarship program accounts for the large majority of state operating funds for childcare: in DLS's review FY26 state operating funds for childcare total about $442.8 million, with $414.2 million (93.6%) allocated to the scholarship program. DLS presenters said enrollment rose from roughly 12,000 children in 2017 to about 46,295 at the start of the current fiscal year and that recent spending rose to about $500 million in FY24 and FY25.

DLS presenter Alastair described the mechanics of the scholarship program: eligible families receive a voucher that sets a scholarship rate and an assigned co-payment; participating providers must be licensed and participate in Maryland EXCELS; and program rates vary by child age, region and quality level. He said the program's funding mix shifted after temporary federal COVID-era funds receded and that the state now provides a higher share of funding.

Because of the enrollment freeze, DLS said MSDE implemented a wait list. The latest quarterly MSDE report, cited by DLS, listed 2,706 children and 1,928 families on that wait list; DLS said exemptions and priority enrollments continue for children receiving temporary cash assistance, Social Security Insurance recipients, and siblings of currently enrolled children. Since the freeze began DLS reported an additional 1,308 children were enrolled in the most recent quarter; DLS said roughly 80% of those were siblings of already enrolled children.

Maryland Family Network Executive Director Laura Wheeldreier told the committees families are "stuck, frustrated and unsure" and urged lawmakers to lift the freeze. "Those numbers are a gross undercount," she said, adding that many families do not apply once they learn of the freeze and instead pursue "less desirable" or unregulated care.

Committee members raised data questions and urged follow-up. Subcommittee Chair Stephanie Smith (Appropriations) framed child care as economic infrastructure and asked for more data on how limited access affects workforce participation, business attraction and broader state economic outcomes. Members also asked DLS and MSDE for specifics on how income eligibility is calculated when household income changes (for example, a federal worker laid off) and whether MSDE tracks how many child care workers themselves receive scholarships or other program supports.

DLS and other presenters offered to follow up with MSDE for more detailed data on eligibility calculations, workforce impacts and provider-level effects of the freeze. Chair Atterberry said ending the freeze will be a priority in the upcoming legislative session.

Ending the freeze was presented repeatedly as a near-term priority; DLS and advocates said longer-term policy questions remain about whether the program should target the lowest-income families or expand toward universal models and how to address structural challenges such as provider start-up costs, low wages for educators, and geographic gaps in slots.

Provenance:
DLS and chair remarks introducing the freeze and enrollment figures appear throughout the hearing; initial mention: "It is now October, and that freeze has not been lifted." (block_1, tc 00:36). DLS summary of funding and enrollment: Alastair presentation and slides (block_38, tc 27:50; block_40, tc 29:24). Maryland Family Network testimony on families walking away (block_60, tc 36:20).