Nana Grants, a nonprofit organization that pays for child care for low-income single mothers in college, has relaunched its CAPS Bridge Funding Program after a four-year hiatus in response to growing need. The Liz Blake Giving Fund and Gas South have pledged $500,000 and $25,000 respectively to support Nana Grants' CAPS recipients through 2027.
ATLANTA, Dec. 19, 2024 /PRNewswire-PRWeb/ -- Nana Grants, a nonprofit organization that pays for child care for low-income single mothers in college, has relaunched its CAPS Bridge Funding Program after a four-year hiatus in response to growing need.
The Liz Blake Giving Fund and Gas South have pledged $500,000 and $25,000 respectively to support Nana Grants' CAPS recipients through 2027. Nana Grants paused its CAPS Bridge Funding Program in 2020 when CAPS began covering 100% of child care costs for eligible families thanks to Federal pandemic relief funds that temporarily increased CAPS subsidies, and have since been rolled back to pre-pandemic levels.
This vital program by Nana Grants will once again offer supplemental child care funding to single student mothers receiving support from Georgia's Childcare and Parent Services (CAPS) program. The reinstatement of the CAPS Bridge Funding Program comes at a critical time when pandemic-related funding for CAPS has ended, yet child care costs are skyrocketing.
Although prices for gas, cars, and groceries have declined over the past year, child care costs have surged by 6.2%, more than double the rate of overall inflation. Low-income mothers without college degrees are more likely to work in low-wage hourly or on-demand jobs that do not offer paid leave or remote-work benefits, meaning a day without work due to child care insecurity is a day without pay. This further underscores the urgency of supporting programs like Nana Grants that provide essential child care support.
Georgia's CAPS program has undergone significant changes in 2024, making it harder for families to qualify for child care assistance. These changes include:
- End of Federal Relief Funding: Federal pandemic relief funds that temporarily increased CAPS subsidies and helped child care providers remain open ended in September 2024. This added instability to the child care system in Georgia.
- Lowered Eligibility Threshold: The income eligibility threshold for new CAPS applicants has been reduced to 30% of the state median income (SMI), down from 50% previously, which limits the number of families who qualify.
- Increased Family Financial Responsibility: CAPS families now face reinstated family fees and copays.
- Additional State Funding: Despite a $9.3 million increase in state funding for CAPS, many providers continue to face challenges due to the loss of federal support.
Surge in Applications and Rising Costs of Child Care
In response to these changes, Nana Grants is stepping in to cover the CAPS Family Fees and copays for Nana Grants recipients. As of October 1, 2024, almost 20% of Nana Grants recipients are new student mothers with CAPS Bridge funding, underscoring the need for additional support. Nana Grants has seen a notable increase in applications from CAPS-eligible families since the announcement of reinstated copays and family fees. We expect that trend to continue as Georgia families begin to feel the impact of the new policies.
"We've seen a significant rise in CAPS students applying to Nana Grants in response to these decreases in CAPS coverage," said Erica Stephens, founder and executive director of Nana Grants. "With generous support from the Liz Blake Giving Fund and Gas South, we are able to expand child care coverage for CAPS families at a time when it is needed most."
The CAPS copay is based on the family's income and determined by the state, while the family fee is the additional amount the family must pay if their child care provider's rates exceed the CAPS subsidy. For example, if CAPS covers $150 per week, but the child care provider charges $200 per week, the family would need to pay the $50 difference, which is the family fee. Additionally, the family would pay their CAPS copay based on their income level. While this system helps subsidize the cost of child care, it can leave families with significant out-of-pocket expenses.
"The reinstatement of the CAPS Bridge Funding Program is a response to the urgent need we're seeing among our students. The combination of rising child care costs and decreased CAPS coverage make it more difficult for mothers to continue their education so they can build better lives for their children," said Stephens. "We're committed to ensuring that no student mother has to choose between pursuing her degree and getting quality care for her children."
ABOUT NANA GRANTS
Child Care + Education = Economic Mobility
Atlanta-based Nana Grants covers 100% of the cost of child care through graduation for low-income student mothers attending an accredited college, university or approved job training program in Georgia. Our mission is to support low-income single mothers pursuing post-secondary education while ensuring their children receive the benefits of quality early childhood education. Learn more at www.NanaGrants.org
Media Contact
Erica Stephens, Nana Grants, 1 770-370-9005, [email protected], www.NanaGrants.org
SOURCE Nana Grants
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