The high cost of child care and limited access to care that meets families’ needs remain persistent challenges for families and communities. Traditional child care assistance programs can also be difficult to access and may not fully accommodate families who rely on relatives, friends, and other trusted caregivers. Colorado’s Childcare Affordability Pilot (CAP) tested different approaches to helping families afford and access care. Launched by Gary Community Ventures in fall 2025, CAP provided financial assistance directly to eligible families, allowed them to use the funds flexibly with their preferred child care provider, and used technology to simplify applications and payments. The pilot also prioritized care provided by family, friends, and neighbors (FFN).

This report examines how CAP was implemented, how families and providers experienced the program, and what the program’s findings can offer other communities seeking to improve child care assistance. The findings highlight the potential of flexible, family-directed assistance and the practical considerations involved in implementing this approach.

Why This Matters

Families need child care assistance that reflects how they actually arrange care. For some families, relatives, friends, and other trusted caregivers provide the flexibility, familiarity, and convenient hours that other options may not offer. Yet, these arrangements can be difficult to support through traditional assistance programs. CAP offers lessons for state and local policymakers, child care administrators, and philanthropic organizations interested in improving affordability, expanding access to FFN care, and reducing administrative burdens. Its findings can help these stakeholders identify promising approaches while understanding what needs further testing before broader adoption.

What We Found

CAP demonstrated the potential of flexible assistance and technology to improve families’ experiences, while revealing challenges that other jurisdictions looking to replicate its approach must address. Key findings from Urban’s case study of the pilot include the following:

• Families valued the financial support and the ability to choose trusted caregivers. Parents described reduced financial and logistical stress and greater ability to work, attend school, and pursue career goals. They particularly valued being able to use assistance for FFN care, including providers who could accommodate evening, weekend, and changing schedules.
• Providers valued the compensation and advance payments. Providers appreciated receiving payment before providing care and having access to clear payment records. CAP distributed $438,804 across 1,319 payments. Changing care schedules led to fluctuations in weekly payments for some providers, however, potentially affecting their financial stability.
• Technology simplified administration. Parents and providers generally found the application and digital wallet manageable. Automated processes and technology-supported document review also helped program staff process applications more efficiently. Families and providers valued being able to track available funds and payment status.
• Flexibility requires appropriate support and clear expectations. Weekly scheduling and attendance reporting worked well for many families but was less well suited to unpredictable care arrangements. Family, friend, and neighbor providers also faced challenges with training, technology, and payment responsibilities. These findings point to the need for clear guidance, accessible support, and requirements that reflect providers’ different backgrounds and experiences.

The findings suggest that communities with new or flexible funding streams could adapt features of CAP to their own needs and resources rather than replicating the entire model. Promising approaches include flexible assistance, streamlined applications, transparent payments, and support tailored to FFN providers. Further testing is needed to understand how these features could work within existing public programs and different funding arrangements.

How We Did It

The Urban Institute conducted a case study of CAP using administrative data and interviews. Researchers analyzed program records to examine participation, applications, care schedules, attendance reporting, and payments. We also conducted virtual interviews with 7 Gary Community Ventures staff members, 4 early child care systems leaders, 10 parents participating in CAP, and 8 participating providers. The interviews explored program design, implementation experiences, perceived benefits, challenges, and opportunities for improvement. We analyzed the interviews for common themes and considered them alongside administrative data to develop findings and recommendations.