Who are childcare subsidies for? Examining subsidy eligibility policy in two southwestern states

Abstract The federal childcare subsidy program is understudied by policy scholars, yet presents a fruitful arena to study the policy process. This study draws on the social construction of target populations and the multiple streams framework to examine state‐level variation in childcare subsidy eligibility policy. The subsidy program is of particular interest because it is malleable to various frames and constructions of its primary mission, each with distinct implications for policy design. Using process tracing in a comparative case study design, the study investigates processes by which eligibility policy was set in New Mexico and Nevada between 2010 and 2022. Findings suggest policy was influenced by multiple processes and variables, including the departmental placement of the subsidy program. New Mexico's program transitioned during the study period from a child welfare department to a new department dedicated to early childhood—a change that was accompanied by a shift in discourse and policy toward more universalistic program aims. This is contrasted with Nevada's subsidy program, which was housed throughout the study period in the state's welfare division. The analysis also identified a substantial role for policy entrepreneurs and the exogenous shocks of the Great Recession and COVID‐19.