A popular pandemic-era subsidy program that has helped offset the cost of child care for families and providers will end in April, the Oklahoma Department of Human Services announced.
The state agency said the COVID-era program, which provides a $5 per child, per day subsidy to child care providers, will end April 6.
“This temporary enhancement was funded through time-limited federal pandemic resources that are no longer available,”a DHS spokesperson said in a statement. “Sharing this update now is meant to give families and providers time to plan ahead.”
The Licensed Child Care Association of Oklahoma, which represents providers, said in a statement that the industry relies on these subsidies and that the cuts “will directly impact families and the availability of child care statewide.”
A spokesperson said in a statement that providers rely on the $5 subsidy to cover “rising wages, utilities, food and insurance.”
“These changes return child care funding to pre-COVID levels, despite the fact that operating costs are dramatically higher than they were before the pandemic,” the spokesperson said. “Providers are already operating on razor-thin margins, and many say these cuts will force closures, reduce enrollment, or push families out of care entirely.”
The announcement that the program will end entirely comes after DHS last year said that one-time federal relief funding had been exhausted, and that the agency could no longer afford to fund the full program. New applications and renewals for many school-age children ended Nov. 1.
The Licensed Child Care Association in December sued DHS in Oklahoma County District Court, seeking an emergency injunction that would require the agency to continue to pay the $5 per day subsidy for school-age children. A judge declined to immediately order DHS to fully restore the pandemic-era subsidy program, but litigation in the case continues.
DHS said this week that the receipt of partial federal funding will allow it to resume paying the subsidies for children ages 6 to 8 until the program ends in April, but the pause on the subsidy remains in place for children 9 and up. Exceptions remain for children in foster care, adoptions, children with disabilities, experiencing homelessness or whose families are receiving emergency financial assistance through Temporary Assistance for Needy Families, according to the news release.
In July, further changes will be made to subsidy eligibility for Oklahoma families. Income eligibility will be 55% of the state median income, down from 85%. This is a return to pre-pandemic guidelines, according to the release.
“Together, these updates help strengthen the child care subsidy program by expanding support where funding allows and making thoughtful adjustments over time,” a spokesperson for DHS said in a statement. “Our goal is a more stable, predictable program that families and providers can rely on today and in the years ahead.”
Child care providers have expressed concern that losing these subsidies will cause facilities to close, which could harm rural communities where child care deserts are more prominent.
