Latest news with #CCDBG
Yahoo
16-05-2025
- Business
- Yahoo
Officials Sound Alarm Over Delayed Federal Child Care Payments to States
The Trump administration has failed to send out an estimated hundreds of millions in discretionary funding to state child care agencies that should have gone out weeks ago, five sources in the federal government and advocacy organizations confirmed. The Child Care Development Block Grants (CCDBG), which states mostly use to provide subsidies to low-income families, were anticipated to arrive around April 1, the start of the federal fiscal year's third quarter. Get stories like this delivered straight to your inbox. Sign up for The 74 Newsletter 'The money hasn't gone out, and that is extremely unusual,' said Ruth Friedman, a senior fellow at The Century Foundation who served as director of the Office of Child Care at the Administration for Children and Families (ACF) under the Biden administration. Emily Adams, policy associate for child care & early childhood programs at the American Public Human Services Association, concurs. Adams works directly with state child care agency directors across the country, and one told her they were notified by their regional child care office that ACF's Office of Grants Management said the funding has not yet been approved for awards and there was no timeframe for when the grants might be approved. In response to a request for comment, a spokesperson at the Department of Health & Human Services, said, 'ACF is working to award third quarter discretionary CCDF funding as soon as possible.' The CCDBG is part of a complex system of federal child care funding. The largest source comes from the Child Care and Development Fund (CCDF), which has two components: mandatory payments made through the Child Care Entitlement to States, which states have already received, and the much larger pot of discretionary CCDBG money, which they haven't. Congress determines the level of CCDBG spending annually and has allotted $8.75 billion to states for the 2025 fiscal year that ends in September. It usually takes two weeks for these block grants to flow to states after Congress passes a continuing resolution funding the government, which it did on March 14. Officials in the Biden administration sent out the first and second quarter funding to state child care agencies on a normal schedule. But the third quarter installment hasn't gone out under the Trump administration, Friedman, Adams and other sources confirmed. Unlike Head Start programs, which face immediate consequences if their funding is delayed, states typically have more cushion for child care, so they may not yet have to make hard choices. That's in part due to the fact that they have a longer time to spend the money, so some may have past funding to keep using. Also, some states put more of their own money into the mix than is required by federal rules, creating even more runway in those places. Related 'Most states have about a month of funds that they can use before they're in big trouble,' Adams notes. But if the money doesn't arrive soon, 'It is eventually going to cause a problem for states,' Friedman explains. The vast majority of the funding covers subsidies that help low-income families pay for child care; if that money dries up, states will have to stop paying for those subsidies. If that happens across all states, the parents of the 1.4 million children who receive them could be left to either cover the full cost themselves or pull their children out of child care. Providers, in turn, could face a wave of unpaid bills and disenrollments. 'It would be extraordinarily destabilizing,' Friedman said. It's unclear if the funding is delayed due to personnel challenges or is being held back for more substantive reasons. By April, the Trump administration had fired nearly half the workforce at ACF. Trump has threatened to eliminate Head Start (although officials recently walked that back) and the so-called 'skinny' budget he released on May 2 would eliminate preschool development grants that help states improve early childhood education and the Child Care Access Means Parents in School program, which helps low-income parents afford child care while going to college. The Trump administration has withheld other federal funding that Congress appropriated and he legally has to disburse. In April, Congressional Democrats released a tracker that found at least $430 billion had yet to go out the door to a wide variety of programs, from Head Start to USAID. But the CCDBG funding wasn't included in that sum. On top of the delayed block grants, state child care agencies have also been subjected to Elon Musk's DOGE effort dubbed 'Defend the Spend' without any warning and little explanation. Now, when an agency wants to draw down federal funds from the payment system — normally a 'routine and regular process,' Friedman said, and one in which they're typically reimbursed for dollars they already spent — they receive an email directing them to take a new step in which they have to justify why they need the money. In an email received by a state agency director on April 17 and shared with Adams, the sender wrote, 'We are requesting additional clarification regarding this payment. An ideal payment justification includes a description of the award and what you plan to do with the funds.' It then directs the recipient to click on a long URL to do so. The email ends with simply, 'God Bless America.' Adams noted that agency directors told her the emails 'looked spammy and they don't come from a known email address.' Some states have had to justify their spending as many as three times before getting it. The process has now led to delays. 'What they typically would get in two to four business days is taking five to 10 business days,' Adams said. An ACF spokesperson said in a response to a request for comment, 'While some states have been asked for additional clarification prior to their CCDF drawdowns being approved, no states have been denied the ability to draw down CCDF funds as the result of the Defend the Spend review. In addition, the CCDF program is being phased out of the Defend the Spend review, so CCDF grant recipients will no longer be asked for a justification to draw down CCDF funds.' In Ohio, the delay caused a scary hiccup in April, said Tamara Lunan, director of care economy organizing at the Ohio Organizing Collaborative. The week of April 14, providers who typically receive subsidy payments from the state on Tuesdays didn't receive anything. Then those with Saturday payments didn't get them either. Although the state technically has a 10-day window to send payments out, 'usually the only thing that throws it off is if there was some type of error in the billing or a holiday,' Lunan explained. When Lunan, who was hearing directly from providers about the missing payments, asked the Ohio Department of Children and Youth (DCY) what happened, she said she was told 'that they got DOGE'd,' and were made to give an extra explanation for the money. But in a later meeting, the state changed its tune slightly: According to meeting notes, the department said it was due to a 'system glitch at the federal level.' The payments went out on April 22, which falls within the 10-day window, but some providers had to wait a week longer than usual to get paid. It took a quick toll: Some had to lay off staff because they couldn't make payroll, while others paid staff late, Lunan said. Jodi Norton, DCY's chief communications officer, noted that the department hasn't strayed outside the allotted time frame, including the week of April 14. 'DCY continues to work with federal partners when additional justification is needed and thus far has been successful in maintaining the 10-day window for payments,' she said. Lunan said the payments have now resumed as normal, but if more delays crop up in the future it could leave some providers to not just lose staff but go out of business entirely. 'Providers are really scared about this,' she added. States already go through a rigorous process to justify their spending long before they draw down money. Every three years they have to submit a lengthy state plan to the federal government, as required by law, that describes their child care programs and how they will follow relevant rules. Those plans, which are publicly available, are then carefully reviewed by the U.S. Department of Health and Human Services; it's only after they're approved that states can get any money. After that, states are monitored to make sure they are following federal rules, and they must track their spending and report it back to the agency to make sure they follow all the requirements. They also undergo annual financial audits. 'There are many pieces put in place by Congress to ensure that federal funds are being spent as intended and as required,' Friedman said. It is 'already quite extensive.' The new 'Defend the Spend' approach 'is not an efficient process for ensuring good stewardship of federal funds,' she added. 'This new process does not create new information, but it does create burden and uncertainty for state agencies.'
Yahoo
15-05-2025
- Business
- Yahoo
Opinion: Congressional funding for child care is crucial to supporting Utah families
Last week, I traveled from southern Utah to Washington, D.C., to speak with congressional staff about the urgent need to fund the Child Care and Development Block Grant (CCDBG) program, our nation's main child care investment. As a home-based child care provider, CCDBG funds typically provide for 50-75% of my program funding. I'm in a rural area and the wages in my area are very low. As much as childcare providers love the work they do, it is work, and they still have to make a living and run their businesses. The block grant money has been foundational in providing scholarships and quality improvement funds for children at the highest risk. Before I opened my program, I spent almost 10 years working with children who had been victims of abuse and neglect in Utah. I saw up close the repeated cycles that come with poverty and a lack of support. As a child care provider I have also seen the good that comes when we interrupt generational patterns and choose to support families, which is why I'm asking Rep. Celeste Maloy to sign Rep. Burgess Owens' appropriations letter asking for robust funding for CCDBG. The cost of child care can be debilitating for families. I felt that as a young mom and social worker trying to figure out how to make it all work for my own family. And in the 17 years since I opened my own child care program, I've seen how hard it is for every family. But I also know how expensive it is to run a quality program and how hard it is to make the numbers work in a very broken system. This past year, for the first time in my program history, I had to raise my rates above the subsidy rate. I was conflicted about this for a long time, as I'm aware it has probably limited the number of low-income families that can choose my program. Those children especially need access to high-quality care, and their parents benefit greatly from the support they receive from a good program. But I also have my own responsibilities, and with rising costs, I did not have a choice. CCDBG funding will help and is a vital part of the solution moving forward. As I told congressional staff, CCDBG can help me as a small-business owner keep my door open while promoting parent choice and ensuring more parents can find and afford the care they need. Rep. Maloy has until May 16th to sign onto this important letter, which would make a world of difference for families, children and providers like me.
Yahoo
06-02-2025
- Health
- Yahoo
What are local organizations doing to address Iowa's childcare crisis?
IOWA — At just 25 years old, Ashley Miranda is the Assistant Director at Conmigo Early Education Center. You'd expect her to have a related degree, but hers is in biomedical science. Her dream is to be a doctor doing missionary work. She has the grades to go to medical school, but also has five younger siblings. 'I was just thinking how I cannot put my family through this financial strain right now,' she says. 'My mom still has babies to deal with. Let me work. Let me save up some money. Let me think about what I really want to do.' Conmigo gave Ashley the foundation to become a straight A student, and the first in her family to go to college. Many organizations think her work should be rewarded. 'This is not babysitting,' say Jillian Herink and Jeannine Laughlin from the Iowa Association for the Education of Young Children. 'Please. It's childcare, not daycare, not nursery school, it's childcare. And these are educators.' AEYC works to attract and retain quality employees like Ashley. 'We have the TEACH and the WAGES program here,' explains Herink, 'one pays for people to go to school, one pays extra stipends to keep them working in the childcare workforce, and so that we can kind of level out that pay a little bit more and keep those teachers where they want to teach.' Ashley is one of three employees at Conmigo in the WAGES program. Two others are benefiting from TEACH. Both are funded by the Iowa Department of Health and Human Services. In-home provider Becky Huisman is also in WAGES. 'It helps greatly offset what I'm not making,' she says, 'and it's covering a lot of bills that needed to be paid.' Low wages contributing to Iowa's childcare crisis, experts say Huisman is also part of the state's voluntary system 'Iowa Quality For Kids' – known as IQ4K – a rating system that also pays bonuses. 'There's professional plans,' she explains, 'what do I need to do to better my program for the kids and make sure I'm still providing the best care I need to for the kids so they can continue to learn and grow from in my program.' Even with the assistance it's tough to make ends meet. 'I haven't raised rates in four years and now it's harder for me to pay my bills. So I'm going to have to raise rates and hopefully my families can meet those increases,' Huisman said. Federal funding is already allocated and available to avoid that scenario in the form of childcare development block grants. $91 million from last year remains untouched. 'So I know that it's sitting there for a rainy day,' Jeannine Laughlin exclaims, 'we are in a damn hurricane!' The governor's office says the state is trying to put that money to use by increasing eligibility for families and reimbursement rates for providers. Alex Murphy, director of communications with HHS released the following statement about the funding: Yes, Iowa does have federal CCDBG funding that has not yet been dispersed. CCDBG funding has specific stipulations around how the funding can be utilized. Specifically, 70% of funds must be spent on 'direct services', meaning the funds must be spent specifically on family access to child care services. Over the past couple of years, the Iowa Legislature increased eligibility for families and increased reimbursement rates to providers in an effort to utilize unspent funds. HHS continues to work with advocates, legislators, and state leaders to determine the best ways to use the CCDBG funds within allowable parameters. Alex Murphy, Iowa HHS The Iowa Women's Foundation created a pilot program called the Childcare Solutions Fund. using public and private dollars, including $3 million from the state. It created 275 new slots in seven communities. 'So, really putting a three legged stool under child care,' says Executive Director Deann Cook, 'with parent tuition, public money, and private money. That's what stabilizes the sector to make it more available for everybody.' The governor referenced the pilot program in her condition of the state address and she's pledging more funding to expand it. Ultimately supporting people like Ashley and the children and families she serves. 'Everything we do here, every interaction we have with them, they absorb it all and they take that with them in life.' Below is a list of resources for families and providers: Iowa Child Care Connect Iowa Association for the Education of Young Children Iowa Department of Human Services Child Care Provider search How to contact your legislators Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
