Months of political deadlock over Wisconsin’s child care funding have ended in a bipartisan budget deal that rewrites how the state supports early childhood services.

While Gov. Tony Evers initially called for $500 million to continue pandemic-era subsidies, Republicans rejected that scale of spending. Instead, lawmakers approved a more conservative package totaling over $300 million—phasing out COVID-era relief while embedding limited, permanent state investment.

The deal includes $110 million in direct monthly payments to providers to ease waitlists and costs for working families, replacing the federal “Child Care Counts” program. Another $123 million will increase provider reimbursement rates under Wisconsin Shares, the state’s child care subsidy program for low-income families.

A notable addition is the new Get Kids Ready initiative—a $66 million program that for the first time uses general tax revenue to support early learning for four-year-old’s.

“This deal helps ensure access for families and stability for providers, without locking in unsustainable spending,” said one Republican lawmaker close to the budget talks. (RELATED: Evers’ Budget Targets School Choice with Restrictions and Red Tape)

Additional reforms target capacity shortfalls and infant care, including:

• $28.6 million in monthly bonuses for providers serving babies and toddlers
• $2 million for grants to expand facilities and staffing
• New staffing rules allowing up to seven toddlers per teacher
• Age standardization for assistant teachers (minimum age 16)

The compromise comes after heavy pressure from child care providers and parents, who flooded state budget hearings demanding action to prevent closures. While Evers warned the end of Child Care Counts could “cripple” the industry, Republicans remained focused on long-term sustainability.

The final outcome reflects a middle ground—ending emergency-era spending while launching a more restrained, state-backed foundation for early childhood policy.

This story is part of a continuing series on the 2025–27 Wisconsin State Budget. Next: education funding and tax reforms. (RELATED: Food Stamp Fraud Exposed Online as States Grapple with Cost)