More than 1.4 million children and their families nationwide rely on publicly funded child care to support their well-being and economic stability. This week, the U.S. Department of Health and Human Services’ Administration for Children and Families took a series of alarming actions that place these families—and the broader child care system—at significant risk. The actions include a proposed rule eliminating the requirement for states to cap family copayments at 7%; the threat of a funding freeze affecting more than $10 billion in child care subsidies, social services, and cash assistance for low-income families in five states led by Democratic governors; and the decision to halt $185 million in annual funding for Minnesota child care providers.
Taken together, these steps threaten access to affordable child care, destabilize providers and jeopardize the economic security of working families who depend on these essential supports.
At Start Early, children and families are at the center of everything we do. Public discourse has focused heavily on fraud and accountability, and the federal government has cited those claims to justify its actions. Yet far too little attention has been paid to the real and immediate impact these decisions are having on children, families and communities. Although responsible stewardship of public funds is essential, these latest federal measures were taken despite little to no evidence of widespread misuse and without clear guidance or consideration of unintended consequences.
States already operate under robust oversight mechanisms – including health and safety monitoring, attendance verification, family eligibility reviews and financial reporting – designed to ensure accountability to both state and federal authorities. Despite these safeguards, families and the early learning workforce are now facing growing uncertainty that threatens both program stability and local economies.
In Start Early’s home state of Illinois, longstanding state investments in the Child Care Assistance Program, alongside critical federal funding, mean there is currently no immediate impact from the proposed funding freeze. State leaders are actively exploring all available options in this rapidly evolving situation.
Even the threat of freezing funding can cause significant disruption, fear and instability within an already fragmented child care system—one that serves our most vulnerable population: babies and young children. The ripple effects extend beyond child care to other essential supports families rely on, including housing, nutrition and health services. When funding stability is compromised, providers across systems are forced to stretch limited resources to protect children and families—placing additional strain on an already fragile infrastructure.
At a time when families and providers are navigating an underfunded child care system, creating instability puts children at risk. Decisions about child care funding and oversight must prioritize what children need to thrive. Start Early will continue to stand with families, providers and state partners to ensure that every child has access to safe, stable and nurturing care.
For media inquiries please reach out to our team at Press@StartEarly.org.
