Subsidies can make child care affordable for families with low incomes, but evidence about their effects on child care markets is limited. In this research brief, the authors study how child care subsidies for parents with low incomes in Minnesota impact local child care pricing and capacity. Findings show that an additional investment of $100 per young child in the local population increased the capacity of licensed private providers by 4 percent and raised the average price of weekly, full-time child care by 0.3 percent. The results suggest that expanded public funding can provide an effective path toward broader child care access for families with low incomes. [Additional funding provided by the Minnesota Experiment Station Project MN-14-183.]