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Federal Child Care Assistance Faces Significant Cuts as Costs Rise

2025-04-08T05:50:21.000Z


PHOENIX — For many parents who must balance work responsibilities with the financial burden of child care, federally funded scholarships have proven to be a vital resource. These scholarships, administered through state child care assistance programs, play a crucial role in enabling parents to maintain full-time employment. However, qualified families are increasingly facing challenges as rising child care costs and the cessation of pandemic-era funding lead to a surge in denials and waitlists across several states.

In states like Arizona, Colorado, and Texas, parents applying for child care assistance are now encountering extended waitlists, leaving them uncertain about their ability to access necessary care. Furthermore, states such as Nevada and Oklahoma have responded to the crisis by increasing copayments for families seeking assistance or have announced they will serve a smaller number of children. In Idaho, the state temporarily paused enrollment in its child care assistance program last year, further compounding the difficulties for families.

Recently, the Trump administration made the controversial decision to lay off several employees responsible for implementing vital child care assistance programs at the federal level. This has led to growing concerns among advocates about the future of these essential programs that help families secure safe and affordable child care.

“What it means is that ultimately child care will become less safe, it’s going to become more expensive, and it’s going to become harder to find,” stated Ruth Friedman, who previously directed the Office of Child Care under former President Joe Biden. The Office of Child Care is tasked with overseeing federal child care subsidies and ensuring that states adhere to safety standards.

As part of a broader strategy to reduce the size of the federal government, the Trump administration eliminated jobs within the Office of Child Care, including critical staff who were responsible for enforcing safety protocols and ensuring that subsidies were utilized effectively. This included personnel who helped states comply with federal requirements for conducting background checks on child care employees, as well as those tasked with safeguarding programs against waste and fraud.

During the COVID-19 pandemic, Congress recognized the importance of the child care industry in revitalizing the economy and approved unprecedented funding to assist providers. States received a staggering $24 billion to support child care providers in raising wages, acquiring necessary health and safety equipment, and training their staff, in addition to an extra $15 billion dedicated to child care assistance scholarships. However, this financial aid expired in September, and Congress opted not to extend it, despite lobbying from President Biden and child care advocates. Consequently, some states are attempting to sustain their programs using taxpayer dollars, but many, such as Arizona, have discontinued special pandemic-era initiatives that aided educators with child care costs. As a result, parents in Arizona are now encountering long waitlists when they apply for basic child care assistance, with no clear timeline for resolution.

“There’s a much bigger need than there are funds,” remarked Kim Kofron from the Texas-based advocacy group Children at Risk. “We know all of these families are willing to work.”

In Phoenix, child care worker Janeth Ibarra, 22, experienced a stark transformation in her financial situation. Last year, she would have paid nothing for child care for her twin boys due to a special scholarship available to those in her profession. However, this year, while she qualifies for regular state child care assistance, the state has run low on funds, and she found herself on a waitlist earlier this year. Currently, Ibarra earns $16.50 per hour but is paying over $1,200 per month for child care, even after a significant discount from her employer. “Even with overtime, it’s barely survivable,” she expressed, sharing her struggles, including spending her last savings on specialized formula for one of her sons—expenses not covered by her food assistance benefits.

In Idaho, where lawmakers chose not to accept pandemic aid for child care in 2023, the state halted applications for its assistance program. When the applications resumed, the income eligibility criteria were tightened, limiting assistance to families earning less than 130% of the federal poverty line, which equates to $41,795 for a family of four. Previously, a family of four could earn up to $56,000 and still qualify for a scholarship.

In Colorado, the situation is similarly dire, as a dozen counties have ceased accepting new applications for the state’s child care assistance program due to budget constraints, as reported by The Colorado Sun.

While Trump has not articulated a clear plan to address the affordability of child care, he has suggested that tariffs could generate “trillions of dollars” for the economy, implying that these funds could subsequently be directed toward child care. He has remarked that child care, in his view, is “relatively speaking, not very expensive compared to the kind of numbers we’ll be taking in.” However, economists have warned that increased tariffs could lead to skyrocketing prices for other household goods, effectively straining family budgets, and raising concerns that child care funding could be further cut as the administration pursues reductions in federal spending.

States striving to uphold child care assistance scholarships face the challenge of rising operational costs. During the Biden administration, efforts were made to enhance the funding received by child care providers when they enroll scholarship students, recognizing the financial strain many of these providers operate under. Karen Schulman, senior director of child care policy at the National Women’s Law Center, emphasizes that the difficulties faced by the child care industry predate the pandemic and are rooted in the unaffordability of care for numerous families, compounded by the low wages of child care workers.

As families grapple with exorbitant child care costs, the median price for infant care in a center was reported to exceed $15,600 in major metropolitan areas, often surpassing median rents in many locations. This alarming trend is illustrated by the experience of Brooklyn Newman, a Phoenix mother who, following her divorce, relocated with her two young sons, aged 2 and 4, into a trailer while she rebuilt her life. Eager to provide structure for her older son during this transition, she sought to enroll him in preschool. However, she could not afford to pay for her younger son until a scholarship funded by pandemic aid became available.

With both children attending preschool part-time, Newman was able to increase her work hours as a freelance business analyst. However, once the scholarship lapsed, she faced the daunting prospect of adding $1,000 a month to her tuition costs, forcing her to make the painful decision to work evenings while caring for her children at home. This arrangement has taken a toll on her ability to spend quality time with them. “I’m constantly behind a computer, you know, giving everything I can,” Newman shared, her voice thick with emotion. Occasionally, her children attempt to hide her computer mouse to obstruct her work.

Despite the challenges, Newman has witnessed her children thriving in preschool, noting significant growth in their language skills, confidence, and relationships with teachers and classmates. “You’re watching them grow. It’s just the best feeling. And that’s why I do everything I can to have them there,” she concluded.

The Associated Press’ education coverage is supported by various private foundations. AP retains full responsibility for the content produced. For further details on AP’s standards regarding partnerships with philanthropies, a list of supporters, and the areas of funded coverage, please visit AP.org.

Profile Image Robert Jackson

Source of the news:   abcnews.go.com

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