Funder Only Briefing & Discussion on Federal Child Care Funding Freeze + Regulatory Rollback: What you need to know

Child care and other federal funds that families rely on to thrive are in the news as part of freeze. Why and what do funders need to know?

ECFC and Raising Child Care Fund hosted this funder briefing on what we know about the lead up to the $10  billion freeze on federal funding for child care and other programs in five states, and the potential impact on thousands of providers and parenhttps://ecfunders.org/event/2026-feb-funder-…ulatory-rollback/ts. The session addressed the HHS proposed  child care regulation which would eliminate key provisions to limit family copayments and ensure states pay child care providers similar to how private pay works in child care. This comes in the same week that New York’s governor and the Mayor of New York City announced a major strategy to expand child care and prekindergarten access in the state.

There are many moving parts, and more news surfacing at rapid speed with serious longer-term implications for child care and government funding.  This session also covered how organizers and advocates are responding in states, and how foundations can help.

Funder Actions: s we prepare for our discussion, we would be interested in hearing any actions you are taking (such as preparing comments to the proposed rule).  Also, if you are aware of any “defend the spend” guidance your state has received about the freeze on child care and family assistance funding, we would be interested in learning more about the guidance.  Please connect with Rachel Schumacher to share what you are learning or planning.

Discussants:

• Rachel Schumacher, Director, Raising Child Care Fund / ECFC (Moderator)
• Ruth Friedman, Senior Fellow, The Century Foundation
• Mary Ignatius, Executive Director, Parent Voices California
• Candace Williams, Family Forward Oregon

BRIEFING URGENT ACTIONS:

Fund Organizing and Stay Informed. ECFC began partnering with organizing grantees in  2019 through the  Raising Child Care Fund (RCCF).  We reach 19 states and the District of Columbia. There is a major gap to fill to meet this moment.  Our current grantees need more support to respond to challenges and move into statewide operations, plus we cannot add more states without more foundation support. Organizers are our frontlines in these challenging times as well as leading the charge for meaningful social change and civil rights in the future.  In New York and New Mexico, long term organizing and advocacy is resulting in increased public investment in universal child care. As heard in the webinar, groups need additional capacity for communications and crisis management. ECFC and RCCF can be a thought partner to help you identify opportunities to engage with organizers in your community and at the national level. Child Care for Every Family Network is a national level information resource on organizing for child care in particular.

Be in relationship and support immigrant communities and organizations. Immigrant – especially Somali- child care providers are being harassed in other states – Washington, Ohio, Oregon, and more. This is a time to call the grantees you have and check on them. Assure them that you will stay with them. In particular, connect with the Somali and African immigrant communities in your areas, listen to what they are experiencing, and ask how you can be an ally. If you don’t already have relationships, you can work through others who do, often refugee or immigration groups, including faith-based providers.

Advance Policies to Protect Immigrants and Child Care Access. The State Innovation Exchange urges you to collaborate with champion legislators and community partners, contact your governors and state attorneys generals, and engage immigrant justice organizers, child care providers, and working families to push for proactive solutions to protect immigrant communities and and expand affordable child care in your state. Resource: TOOLKIT: State Power to Protect Immigrant Communities by State Innovation Exchange.

Communicate well. Don’t reinforce misinformation. Fund communications capacity. There is also an urgent need for communications to counter fraud narratives.  The goal in communication here is to keep the focus on children, families, and the impact. Grantees need expert help and their own capacity to communicate strategically. Some audiences, such as state legislators, may have legitimate questions about program integrity. State program administrators and advocates are offering briefings; fact sheets and other resources, including talking points to counter the fraud narrative.  See below for some examples of national and state communications efforts.

BRIEFING RESOURCES:

Our briefing was not recorded, however below are related resources and tools shared and updated resources as ECFC receives them from partners and advocates.

HHS PROPOSED RULE ROLLBACK

The HHS proposed child care regulation  would eliminate key provisions that are positive advances in the Child Care and Development Fund that make it easier for families to afford child care and for small-businesses that care for subsidized children to be paid by states in a manner similar to how they operate with private pay families.

• Co-Payments Capped at 7% of Family Income
• Enrollment–Based Payments to Providers
• Prospective Payments to Providers
• Grants & Contracts for Direct Services

The proposed regulations are open for comment until February 4.  Related resources:

• EducationCounsel, Unpacking the Child Care and Development Fund Notice of Proposed Rule Making
• Child Care Aware of America,  Summary of the proposal
• Administration for Children & Families factsheet showing which states are implementing components the 2024 Child Care and Development Fund (CCDF) Final Rule

COUNTERING FRAUD NARRATIVES

On the basis of unproven claims of “fraud,” the U.S. Department of Health and Human Services (HHS) has issued a “freeze” on child care funding for five states, including California, Colorado, Illinois, Minnesota and New York. This will have devastating implications for children, families, and child care providers and early educators — as well as our larger communities and economy. We know that without child care, no other work can happen. The ripple effects of these actions will be felt by every single one of us.

• Child Care for Every Family Network
  • Quick Facts – Trumps recent attacks on child care
  • Action links and scripts for connecting with your state legislators.
  • Trumps Child Care Funding Freeze – Stories and Impact on the Ground  
  • What to Know About the Funding Freeze & Other Attacks on Child Care (for lawmakers) and Child Care Funding Freeze (for advocates)

• SiX and NWLC – State Legislator Toolkit on Federal Child Care Attacks 

COMMUNICATIONS EXAMPLES

State examples:

• Political education slide deck on fraud myth, Parent Voices California
• Colorado Department of Early Childhood
• Minnesota Kids Count on Us Statement and Press Conference (video)
• ISAIAH, memo to Minnesota community about actions you can take right now

National examples:

• Bipartisan Policy Center, The Child Care and Development Fund: How Recent Administrative Actions May Impact States, Families, and the Workforce
• CLASP, National Immigration Law Center, African Communities Together, Oppose Opportunist Racist and Anti-Immigrant Attacks on Somali Communities and Federal Programs
• Child Care Aware of America, video statement from Susan Gale Perry, Executive Director