Recent federal actions, including a freeze on child care and family assistance funding and proposed rollbacks to key child care regulations are creating serious uncertainty for families, providers, and the systems that support them. These moves threaten recent progress in making child care more affordable for families and more sustainable for providers, particularly those serving communities with the fewest resources.
In response, the Early Childhood Funders Collaborative (ECFC) and the Raising Child Care Fund (RCCF) convened a funder-only briefing on January 16 to share timely analysis, surface on-the-ground impacts, and explore how philanthropy can respond in this moment.
Below, we outline what’s at stake and share resources for funders seeking to stay informed, support grantees, and take action.
What’s at Stake
Proposed Rollbacks to Child Care Regulations
The U.S. Department of Health and Human Services (HHS) has proposed changes to the Child Care and Development Fund (CCDF) regulations that would undo critical improvements finalized in 2024. These include provisions that:
Cap family co-payments at 7% of income
Enable enrollment-based payments to providers
Allow prospective payments, improving provider cash flow
Expand the use of grants and contracts for direct services
Together, these policies help stabilize the child care sector, support small providers, and make care more affordable for families. The proposed rollbacks would reverse that progress. Public comments are open through February 4.
Growing Harm from Misinformation and Targeted Attacks
At the same time, misleading “fraud” narratives are being used to justify funding freezes and regulatory changes. In several states, immigrant child care providers, particularly Somali and African immigrant communities, are facing harassment and racialized attacks tied to these claims.
Clear, values-based communication is essential to keep the focus on children, families, and the real impact of these programs, while countering misinformation with facts.
How Funders Can Respond Right Now
Fund organizing and rapid response capacity.
Grassroots organizers are on the frontlines of this moment—supporting families, responding to crises, and advancing long-term systems change. Through RCCF, we have partnered with organizing groups since 2019 across 19 states and DC. The current moment demands deeper investment in organizing, communications, and crisis response capacity.
Stay in relationship with grantees, especially immigrant-led organizations.
This is a time to check in, listen, and affirm long-term partnership. For funders without direct relationships, trusted intermediaries—such as refugee, immigrant, or faith-based organizations—can help build connection and understanding.
Communicate responsibly and resource grantees to do the same.
Fund communications capacity that helps grantees counter misinformation, respond to legitimate questions about program integrity, and keep public narratives grounded in the experiences of children, families, and providers.
Key Resources
Understanding the Proposed Rule
EducationCounsel – Deep Dive Analysis of the HHS Proposed Rule
Child Care Aware of America – Summary of the Proposal
Administration for Children & Families – State Implementation Factsheet for the 2024 CCDF Final Rule
Countering Fraud Narratives
Child Care for Every Family Network – Talking Points on Child Care “Fraud”
Child Care for Every Family Network – Quick Facts on Recent Attacks on Child Care
Communications Examples
State
Minnesota Kids Count on Us – Statement and Press Conference
ISAIAH – Memo to Minnesota Communities
National
Bipartisan Policy Center – CCDF and Recent Administrative Actions
CLASP, NILC, African Communities Together – Statement Opposing Racist and Anti-Immigrant Attacks
Child Care Aware of America – Video Statement from Susan Gale Perry
Looking Ahead
ECFC will continue to share resources, analysis, and opportunities for funders to engage. Philanthropy has a critical role to play—not only in defending hard-won gains, but in supporting the people and movements working toward a more just, equitable child care system.
If you are interested in learning more or exploring how to engage at the local, state, or national level, we invite you to stay connected.