Oklahoma Human Services (DHS) announced upcoming changes to child care subsidy eligibility Wednesday after it received partial federal funding. This comes after it recently authorized reductions to child care subsidies for school-age children that were challenged in court.
The department said in a press release the funding will allow it to take steps toward "strengthening and stabilizing" Oklahoma's child care subsidy program, and expand access "where funding permits."
On Oct. 30, DHS sent a letter to providers announcing the removal of a $5 per day add-on to providers' subsidy rate schedule – implemented during the COVID-19 pandemic – for children ages six and older. It also halted new applications and renewals for these children, with exceptions for those who are unhoused, in foster care, placed for adoption or with disabilities.
Both policies became effective Nov. 1. DHS argued that factors like the expiration of temporary federal COVID-era funding, rising enrollment and continued uncertainty following the government shutdown resulted in the need for action. The agency has requested $70 million in state funds to "stabilize the child care system and prevent future funding cliffs."
The Licensed Child Care Association of Oklahoma filed a suit against DHS, seeking a temporary restraining order against the directive. Oklahoma County District Judge Natalie Mai declined to grant it in December, citing a lack of evidence to support it. Eve Spaulding, an attorney representing the association, said they will continue pursuing the matter.
Now, starting Jan. 12, child care subsidy access will be available to children ages six through eight. DHS said its pause on renewals and new applications remains in place for children ages nine to 12, with the same exceptions.
Families receiving emergency financial assistance through the Temporary Assistance for Needy Families program will also now be exempt. Their children may be served up to age 13.
Katie Quebedeaux, an administrator at Faith Learning Center in Guymon, said although she is thankful for the extension for some school-age children, she's disappointed nine- to 12-year-olds are left out. About 15 to 20% of her enrollment is within that age range.
"We just have a concern about the safety and the well-being of those children – if they're getting off of a bus, if they're going home every day to a safe location," Quebedeaux said.
Starting April 6, the $5 per day add-on will end for children of all ages. DHS said this enhancement was funded through "time-limited federal pandemic resources that are no longer available."
Quebedeaux said this means a program with 100 children would lose $500 a day.
"You're looking at $2,000 plus a week that you're losing," Quebedeaux said. "Most people can't afford to take that cut in their paycheck, so I don't know why they assume that child care providers would be able to do that as well."
The Licensed Child Care Association of Oklahoma has argued DHS's characterization of this add-on has changed, saying it treated it as a standard component of its reimbursement structure. It said DHS represented it as a measure "to promote stability, improve quality, expand capacity and support Oklahoma families and providers."
"It was never relayed to us as COVID era," Quebedeaux, who is also an association board member, said. "It was relayed to us that this is money that's coming to you."
DHS is also altering the child care subsidy income eligibility from 85% of the state median income to 55%, beginning July 1. Quebedeaux said this is concerning, as a smaller portion of families would be eligible.
"How are they going to start affording to pay for that care?" Quebedeaux said. "So now they're looking at, do we quit our jobs? Do we switch jobs? Do we leave our kid at home alone?"
DHS said its goal in these changes is to create a more stable, predictable program that families can rely on, and to share them early so families and providers can plan. Quebedeaux said although she appreciates the heads-up, she doesn't know how much it will help in the long run.
"Are we supposed to go to our parents and say, 'Well, I'm sorry, we can't afford this teacher, so now your 12 children can't come anymore,'" Quebedeaux said. "I think what's going to happen is we're going to see more programs close."
"We really need to focus on the children and the families and how this is going to affect Oklahoma's workforce as a whole," she added.
