Childcare centers just lost thousands of federal dollars. Families and providers scramble to cope

Category: (Self-Study) Education/Family

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Last month was the first in two years that more than 200,000 childcare providers across the U.S. did not receive checks from the federal government—some for tens of thousands of dollars—as part of a pandemic-era program to help cover the cost of services.

The monthly payments, considered the largest investment in childcare in the U.S. history, ranged from hundreds to tens of thousands of dollars and stabilized the industry during the COVID-19 pandemic.

For years, providers had been raising alarm about an unsustainable business model that burdens families with high costs and leaves centers with razor-thin profit margins—issues only exacerbated by inflation and a significant workforce shortage.

Now, providers say that without additional investment, centers are facing the possibility of shutdown. The Century Foundation, a progressive think tank in Washington, D.C., analyzed a provider survey and government data and concluded that in six states—Arkansas, Montana, Utah, Virginia, West Virginia, as well as Washington, D.C.—up to half of all providers are threatened.

Many families and providers are calling on Congress to create a permanent funding solution to the crisis, warning of the ripple effects on the nation’s already brittle economy. A Democratic proposal failed in September without any Republican support. It would have continued the grants for five years with $16 billion allocated annually.

The most at-risk providers are those in rural communities that predominately serve low-income families.

At Living Water Child Care Center in Williamson, West Virginia, a $7,000 monthly subsidy went to purchasing a new curriculum and advancing employee certifications, according to Director Jackie Branch. The investment paid off: In April, the center moved up a tier in its state quality rating, increasing its monthly stabilization funding to $11,000.

The center serves three meals a day, plus snacks. They also distribute donations such as clothes and school supplies.

Branch said it will be an uphill battle to find other grants to make up for lost funds. 

This article was provided by The Associated Press.

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[Town]

[Exterior of Living Water Church, where child care center is located]

[Children playing in playground]

Jackie Branch (interview): “There are so many people that, they don’t have a grandma, or an aunt, or a cousin, or anybody that can be a consistent person to watch their child everyday.”

[Children playing in playground area with Goldie Huff, foster parent]

Jackie Branch (interview): “It would affect the nutrition of children, it would certainly affect the educational opportunities that they have. We do have Head Start that does a great job in our community, but they’re full. You know, so there would be — when I say they would have no other option than not to work, they would have no other option.”

[Child care staff member playing with children]

[Children and Living Water staff members sitting on ground]

Deauna Artis (interview): “It’s helped us to teach them better, to help their little brains learn more, to absorb more, to interact with them more and to just help them be better little human beings.”

[Artis reading book to children]

[Inside child care center]

Jackie Branch (interview): “We’re currently pursuing grants and different things like that to help us.”

[Children playing outside]

Goldie Huff (interview): “A lot of the grandparents are raising the kids because their parents couldn’t raise them. So if they don’t have daycare, the grandparents can’t work. You have to work to have money to raise your grandchildren.”

[Children playing]

Goldie Huff (interview): “You have to teach them how to be kids again. They (the teachers) teach them how to be kids again. And they’re not parents. They don’t have to be the parent. They don’t have to take care of the brothers and sisters. They can be a kid because they take care of them.”

[Parent dropping off child]

[Child playing]

Jackie Branch (interview): “Are they getting physical activity? Are we engaging them? Are we doing this? But until you can individualize the child and know what their immediate need is, you can’t get that hurdle (emotional). And I think that the ladies here, they do a great job of getting to know the child and the family.”

[Staff member playing with children]

[Artis playing with children]

Deauna Artis (interview): “I feel it’s important for them to have a safe space so they know that they are loved, regardless. Somebody loves them. And if something is going on, or they feel some type of way, that they have a secure person in their life — at least one person (emotional) that they can come and talk to and they can come and just feel loved and feel like everything’s going to be ok.”

[Children being dropped off at child care center]

This script was provided by The Associated Press.