Update Provided on Impact to Federal, State Child Care Funding

Information was shared by OCDEL and other organizations this week regarding what is known about the current status of federal and state child care funding.

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The federal government announced in early January that it would freeze $10 billion in federal funds to California, Colorado, Illinois, Minnesota, and New York. This was triggered by allegations of fraud at child care centers in Minnesota and was initially stated it would be applied nationwide.  However, a judge temporarily blocked the freeze on January 9 on the grounds that the states met a threshold “to protect the status quo” for at least 14 days while arguments were made in court. 

Documentation or Payment Delivery

OCDEL has announced that there is no change in required documentation or in payment delivery for child care providers with Child Care Works contracts receiving reimbursement for subsidized child care.

Early Learning Resource Centers (ELRC) and child care providers will continue administering Child Care Works in accordance with existing OCDEL policy and procedures. Also, for parents, OCDEL has announced that there is no change in the type or frequency of required documentation.

Child Care Staff Recruitment and Retention Program 

The Child Care Staff Recruitment and Retention Program enacted in the 2025-26 state budget is not affected by the federal funding change and will continue accepting applications from eligible providers from qualified staff.

Providers must submit a completed application to their region ELRC by Thursday, January 29.