I think it would be much better to provide a one year paid stipend so that a parent can be home with the children during their tender years.
This entire structure is set up to keep the boss happy while a stranger raises your child during their most formative and vulnerable years.
I would rather my kid be raised by a) spouse b) grandparents c) no-habla cash only daycare (who are catering to customers who's average values are much closer to mine than an above the table business). Only after all those options are exhausted do I look toward a "real business".
So basically this is a subsidy of the 4th place option.
Real businesses subject to real inspections and real assessments, you mean? With "strangers" who need to have qualifications and background checks?
To each their own of course but I'd prefer somewhere I know is actually judged to be a safe environment than some under the table option.