KMT Legislators Propose Subsidies for Private Kindergarten Children, Civil Groups Warn of Profiteering and Urge Caution

(CNA reporter Wu Hsin-yun, Taipei, June 16) — Kuomintang (KMT) legislators are scheduled to review amendments to the 'Early Childhood Education and Care Act' on the 18th, proposing subsidies of no less than NT$15,000 per month for children attending private kindergartens. Civil groups have criticized the proposal, arguing that private kindergartens can set their own fees without regulation, and suspect the amendment would unfairly benefit operators, urging legislators to reconsider.

On June 18, the Legislative Yuan’s Education and Culture Committee and the Social Welfare and Public Health Environment Committee will hold a joint session to review partial amendments to the Early Childhood Education and Care Act. The Civil Alliance for Childcare and Employment Policy released a statement today, calling on legislators to carefully deliberate the proposed changes and warning against using hundreds of billions in education budgets to benefit private kindergarten operators.

The Alliance points out that several KMT legislators have submitted a draft amendment to Article 7 of the Act, specifying that 'families using public kindergartens, quasi-public kindergartens, and non-profit kindergartens shall pay no fees after subsidies; families using private kindergartens shall receive a monthly subsidy of no less than NT$15,000 per child.'

The Alliance warns that if the amendment passes, nearly all childcare costs for families using any type of kindergarten would be covered by the government. While this appears universally beneficial, it would effectively redirect approximately NT$30 billion annually from the central government’s education budget directly to private kindergartens—under the guise of benefiting 'all parents.'

Currently, public, non-profit, and quasi-public kindergartens already receive substantial government subsidies, resulting in very low fees. If the amendment makes these services completely free, an additional annual budget of approximately NT$10 billion would be required, based on the current 370,000 enrolled children.

For private kindergartens, the Alliance notes there are currently no regulations on parental fees, allowing private institutions to set their own prices. If the amendment passes, with approximately 160,000 children currently enrolled in private kindergartens, the government would need to allocate nearly NT$30 billion annually. This means each child in private kindergartens would receive about seven times more in subsidies than those in public alternatives. The beneficiaries are clearly not 'all parents,' but primarily those using private services.

The Alliance cites a 2025 OECD report stating that direct government subsidies to parents choosing private childcare—tested across multiple countries—often lead to uncontrolled price increases and absorption of public funds by operators, with limited benefits to families. The report recommends establishing public childcare services to better control quality and ensure public spending achieves its intended goals.

The Alliance explains that current quasi-public kindergartens were originally private institutions. However, by agreeing to government regulations under the 'Ministry of Education Guidelines for Subsidizing Local Governments’ Cooperation with Private Childcare Providers to Deliver Quasi-Public Services,' they have relinquished their pricing autonomy and transitioned from a free market to a 'regulated market,' justifying substantial public funding.

In contrast, private kindergartens operating in a free market, setting their own fees, have no legitimate reason to demand taxpayer support. The Alliance urges KMT legislators to reconsider: Is this amendment truly supporting all families, or is it primarily profiting the private kindergarten industry? (Edited by Chang Ming-kun) 1150616