Legislators Propose NT$15,000 Monthly Subsidy for Private Kindergarten Children, Others Free; Ministry Estimates Annual Cost at NT$42.3 Billion

(CNA reporter Tseng I-Ning, Taipei, June 18) The Education and Culture Committee of Taiwan's Legislative Yuan reviewed draft amendments to the 'Early Childhood Education and Care Act' today, with several legislators proposing a monthly subsidy of NT$15,000 for children attending private kindergartens and free access after subsidies for public, quasi-public, and non-profit kindergartens. Minister of Education Cheng Ying-yao stated that such subsidies would increase national treasury expenditures by NT$42.3 billion annually and expressed concerns about price volatility in private kindergartens and increased burdens on local governments.

The Legislative Yuan's Education and Culture Committee and the Social Welfare and Public Health Committee held a joint session today to conduct inquiries and line-by-line reviews of 20 proposed amendments to the 'Early Childhood Education and Care Act' submitted by multiple legislators. Minister Cheng Ying-yao attended with relevant officials to answer questions.

Among the proposals, amendments to Article 7 were jointly submitted by Kuomintang legislators Hsu Chiao-hsin, Lo Chih-chiang, Wang Yu-min, and Lo Ting-wei, explicitly stating that the government should subsidize families using private kindergartens with no less than NT$15,000 per child per month. Additionally, proposals by Kuomintang legislators Liao Hsien-hsiang, Hsu Chiao-hsin, and Hsu Hsin-ying stipulate that families using public, quasi-public, and non-profit kindergartens would pay nothing after subsidies.

During the session, Democratic Progressive Party (DPP) legislator Lin Yueh-chin questioned whether a NT$15,000 monthly subsidy for private kindergarten children would genuinely reduce parental burdens and how much additional budget would be required.

Cheng Ying-yao responded that private kindergartens operate under market mechanisms. A uniform subsidy, combined with making quasi-public kindergartens entirely free, would require an estimated annual increase of NT$42.3 billion in national expenditures.

Cheng emphasized that improving the quality of public childcare is more important. In recent years, the government has expanded non-profit and affordable quasi-public kindergartens and reviewed their quality. Last year, approximately 40 quasi-public kindergartens were required to exit due to failing to meet quality standards.

Meanwhile, DPP legislators Chen Hsiu-pao, Kuo Yu-ching, and Lin I-chin expressed concerns that significantly increasing kindergarten subsidies could impact local government budgets under the Fiscal Responsibility Act. They also argued that discussions on whether the proposal meets actual family needs and its impact on the private kindergarten market remain insufficient, calling for a temporary halt to line-by-line review.

Cheng acknowledged that directly codifying such subsidies into law could indeed increase local government burdens. Currently, affordable non-profit kindergartens across Taiwan meet the needs of about 360,000 children, with parents choosing private kindergartens accounting for roughly one-third of the total. However, a uniform subsidy could lead to greater price fluctuations in the private sector.

Wang Wan-yu, chairperson of the Taiwan People's Party, issued a statement today warning that making public, non-profit, and quasi-public kindergartens completely free would require an additional annual budget of approximately NT$10 billion. Adding a monthly NT$15,000 subsidy for 160,000 private kindergarten children would result in hundreds of billions in additional annual expenditures. She noted that children in private kindergartens would receive subsidies seven times higher than others.

Wang cited an OECD 2025 report summarizing international experiences, warning that large government subsidies to privately priced kindergartens often lead to rising tuition fees rather than reductions, with parents benefiting far less than expected. She urged prioritizing national resources to expand public and non-profit kindergarten capacity, keeping control in the government's hands. (Edited by Chai Szu-chia) 1150618

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