Anchorage is turning to its marijuana tax revenue to help fix one of the city’s biggest challenges: child care.
In a move long in the making, officials are preparing to roll out between $5 to $6 million annually — all from cannabis tax dollars — to improve affordability, accessibility, and sustainability in the city’s child care sector.
In 2023 city voters approved an initiative to dedicate cannabis tax revenue to early childhood programs. Now, those dollars are finally being funneled into concrete plans, with former Acting Mayor and Assembly member Austin Quinn-Davidson helping lead the charge.
Quinn-Davidson, now interim executive director of the Anchorage Child Care and Early Education Fund Board, said the city’s child care system has been shrinking.
“There’s many pieces of the puzzle to solve. Ensuring that there’s sufficient spots for people who need them is important, and then it’s also important to look at cost”, she said.
The 2025 budget reflects that dual focus. One major component is a $1.25 million fund to help child care workers cover the cost of care for their own kids — a strategy meant to stabilize the workforce. Desiré Shepler, CEO of Alaska Family Services, which will distribute the funds, said the support is crucial.
“A part of keeping the sector alive is having folks who can afford to work there,” she said.
This approach is inspired by a Kentucky program that doubled the number of families receiving assistance in just a year. Anchorage hopes for similar results.
Another $2 million will go to child care providers for capital projects — from much-needed playground upgrades to expansion efforts.
The application deadline for providers seeking capital funds is Thursday, May 15. Remaining tax revenue will go toward administrative support and emergency stimulus for centers on the edge of closure.
