Municipality in need: financial crisis threatens all-day care for children!

Municipality in need: financial crisis threatens all-day care for children!

Cities and municipalities in Germany are facing significant financial problems, which are being exacerbated by new legal requirements such as the all-day entitlement for primary school children. Even if political measures have been adopted to support municipalities, such as housing benefit and the provision of daycare places, these are often not adequately supported financially. The calls for help from local authorities are increasing, and the need for action by the federal and state governments is more urgent than ever. The public is increasingly hearing that the effects of the financial emergency are very different and that not all cities and municipalities are affected equally, as Süddeutsche reports.

In the context of these financial challenges, this will All-Day Funding Act (GaFöG) introduced, which provides for a legal right to all-day care for primary school children. This law will be implemented gradually from the 2026/27 school year and requires municipalities to achieve a new standard of care. From August 2026, the entitlement will apply to children in the first grade and will be extended to grades two to four by the 2029/2030 school year.

Financial support for implementation

To implement the law, the federal government is providing a total of 3.5 billion euros for investments in educational infrastructure. This money can be used to build, expand or renovate all-day care facilities. From 2026, there will be a need-free entitlement to full-day care for eight hours on five days a week, with teaching times taken into account. Children are also entitled to care during the holidays, with a maximum closure period of four weeks, which can be regulated by the federal states, as MDR highlights.

These legal changes aim to improve the compatibility of family and work and to significantly improve the educational and participation opportunities for primary school children. However, it is also noted that implementation may face challenges, particularly in terms of the required staff and available space.

Long-term perspectives

Changes to the law that have already been approved by the Federal Cabinet give states and municipalities two additional years to access the necessary funds to expand all-day care. This federal aid should be available until 2029 and is part of a comprehensive plan to increase the quality and quantity of care offerings.

Experts still warn of the existing challenges, not least because the regular funding would originally have expired at the end of 2027. These new regulations ensure that the legal right to full-day care is not just on paper, but can also be implemented in practice, which represents a decisive step towards educational equality.