You may have seen news about the federal government freezing child care funding to states over the New Year. This announcement and the news around it have been confusing and worrying—especially for all of the providers who already work hard to keep doors open, pay staff, and care for children every day.
I’m writing this letter to you because I know this is a scary time, and child care providers are likely having anything but a happy New Year with the uncertainty about funding and the feelings of anger and heartache over the ways child care providers are being discussed in the media. Child care providers are some of the most important educators young children have and are unsung heroes of our economy and our state.
While I am also feeling anxious and furious about the situation, I wanted to take a moment to just share the facts that are known, so you have as much information as possible. It may not reduce your anxiety, but I hope that more clarity about what is confirmed versus what is rumour may bring you some calm amid the storm. It’s my hope that this letter explains what we know is happening and what you can do right now.
What is actually happening?
As you know, most federal child care money comes through a program called the Child Care Development Fund (CCDF). This is the funding that helps Mississippi pay child care providers enrolled in the Child Care Payment Program each month for families who use child care assistance.
On December 31st, the federal government announced it would pause access to child care funding and add new steps that states must complete before they can receive the money due to some alleged fraud in Minnesota.
Then, today, on January 5, the U.S. Department of Health and Human Services (HHS) announced it would undo three changes made in recent years to the child care program to reduce fraud.
In today’s press release, HHS said:
“Attendance-based billing will be restored. States may require payment based on verified attendance rather than enrollment alone.
Upfront payments will no longer be required. States may again pay providers after care is delivered.
Voucher flexibility will return. States are no longer steered toward contracts over parent-directed vouchers, restoring parental choice.”
While this is being called a “rule change,” it is not certain if these will be required or just encouraged. Additionally, while Mississippi DOES use enrollment-based payment, it does not currently pay before services are provided and already allows for parent-directed vouchers.
Also, because this press release came after the December 31st funding pause announcement, it is still unclear whether HHS will still slow or freeze states’ access to child care funds while these changes, new reviews, or paperwork are put in place.
While this situation is incredibly serious and unsettling, it’s important to note that there is no definitive information at this time that Mississippi’s January child care payments will not be made, or that a change to enrollment-based payments will be required. We will watch closely and will share updates as soon as more information is available.
Why does this matter to Mississippi child care providers?
In addition to the announced funding pause on December 31st, the announced change that may have the biggest impact is the encouraged shift from enrollment-based payments to attendance-based payments.
As you already know, child care programs must pay for teachers, food, rent, and supplies every day, even when a child is absent. Being paid based on enrollment over the past few years has helped many programs stay financially stable.
It is still unclear if the federal government will require the Mississippi Department of Human Services (MDHS) to make the shift to attendance over enrollment OR if it does, how it will request confirmation from MDHS that these new rules are being followed. Until that is clear, providers may face payment delays, and a move to attendance-based payments will likely mean less funding overall.
As you know from experience, even short delays or small cuts can cause serious problems:
- Trouble making payroll
- Difficulty paying rent or utilities
- Having to limit enrollment or close classrooms
- In worst cases, shutting down temporarily or permanently
I have heard from many of you about the very tight budgets you already have. In this instance, there is little room for delays or uncertainty.
So, what about this fraud?
Mississippi child care providers and the early education community all agree that fraud should never be accepted. And, it is important for families and lawmakers to understand that fraud is already very difficult in Mississippi.
Providers already:
- Be licensed or approved
- Track attendance and enrollment
- Follow strict rules
- Go through regular monitoring and oversight
- Remove a child from the program if they miss 30 days in a row
And Parents already:
- Have income at or below 85% of Mississippi’s State Median Income
- Be working or enrolled in school or job training
- Be Mississippi residents
- Apply and manage their case through the Mississippi Department of Human Services (MDHS) system
Mississippi already has systems in place to prevent and catch fraud. Freezing funding and changing to an attendance-based payment process does not fix fraud—it only hurts children, families, and providers who are doing the right thing.
What can you do?
Your voice matters right now.
- Call your Senators and Representatives in the United States Congress
State Senators or Representatives and MDHS staff are not yet in control of this situation, so focus your attention on National leaders. Tell them to demand that child care funds be released immediately and without delays. Wondering how to find their contact information? Use this website. - Share accurate information
If you read any comments on social media posts, you’ll see A LOT of misinformation and misunderstanding of what CCPP is. Lots of people are saying things like “Why should taxpayers pay for child care for people who aren’t working?” and “Child care is too expensive anyway! Those people are overcharging families and government funds shouldn’t even be needed.”
Use your social media, newsletters, or conversations with families to explain:
- Why child care funding matters to Mississippi working families and businesses
- How delays hurt businesses, children, and working families
- How expensive child care is to provide because of the high staffing costs and care needed for young children
- That Mississippi already has safeguards against fraud
- Encourage families to call Congress too!
Parents’ voices are powerful. When families speak up, lawmakers listen.
Why this matters now
Thank you for everything you do for Mississippi’s children and families. I hope that this letter serves to give you some information and lets you know what is happening. While there is a chance January payments may not be made, currently there’s no confirmation of that. I hope that gives you some comfort amid the uncertainty.
Please reach out if we can help you, and feel free to pass along any information you have–so we can keep others informed of what is happening.
More updates will be announced as they are received.
Sincerely,
Biz Harris
MELA Executive Director