Federal policymakers are currently considering several proposals that could significantly change how child care subsidy programs operate nationwide. While many of these proposals are framed as efforts to increase accountability or prevent improper payments, the approaches being discussed could create new barriers for family child care (FCC) educators and the families who rely on them.
However, the policy conversations underway in Congress could make it harder for FCC educators to participate in subsidy programs, potentially reducing access to care for the very families these programs are meant to support.
This bulletin highlights key federal policy discussions that FCC educators and advocates should be aware of—and why your voice is critically important right now.
Misinformation about Child Care Subsidy Improper Payment Rates
Some policymakers have recently raised concerns about fraud in child care subsidy programs and are proposing policies to prevent improper payments. Improper payments in child care subsidy systems are typically the result of administrative errors, complex eligibility documentation, changes in family circumstances, or system processing challenges–NOT fraud by educators.
Over the past several years, many states have worked to strengthen child care systems by moving toward enrollment-based payments and prospective payment models. These approaches provide more predictable income for child care educators and help stabilize programs. However, federal pressure to reduce improper payments could push states back toward attendance-based payments.
For FCC educators, attendance-based payment models can create significant financial instability. FCC programs still hold a child’s space and maintain staffing and operating costs regardless of whether a child attends on a given day.
Despite existing extensive oversight and accountability, and unsubstantiated claims of widespread fraud in the child care subsidy system, some proposals policymakers are discussing could lead to new requirements such as:
- Daily attendance verification systems
- Additional documentation requirements
- Increased audits for educators and programs
- Payment delays while attendance or eligibility is verified
Proposed Changes to CCDBG Introduced in the House and the Senate
In early March, a package of child care bills amending the Child Care and Development Block Grant Act (CCDBG) and the Child and Adult Care Food Program (CACFP) passed through committee and could soon be considered on the House floor. These bills give the U.S. Department of Health and Human Services unprecedented authority to withhold all CCDBG funding from states without cause or due process, bar child care educators for non-fraudulent activity, and burden states with costly activities that don’t improve program integrity. You can read more about each of the bills here: H.R. 7720, H.R. 7721, H.R. 7723, H.R. 7726, H.R. 7724.
Later in March, Senators Bill Cassidy and Tommy Tuberville released a discussion draft outlining potential sweeping changes to CCDBG. The proposal emphasizes stronger oversight and monitoring of subsidy programs, with a particular focus on preventing improper payments. These changes could significantly destabilize FCC programs by increasing administrative burdens, shortening eligibility periods, and tying payments more closely to attendance than to enrollment.
Policies that focus primarily on monitoring and enforcement—without understanding how FCC programs operate—can create systems that are even more difficult to navigate. When subsidy participation becomes too complicated, or payments become less reliable, FCC educators often face an impossible choice: continue serving subsidy families at financial risk or leave the system altogether.
When FCC programs leave subsidy systems:
- Families lose access to affordable, high-quality child care
- Infant and toddler care becomes even harder to find
- Rural communities lose critical child care options
- The overall child care supply shrinks
Policymakers Need to Hear From Family Child Care Educators
Many policymakers making decisions about child care policy have never visited a FCC home or spoken directly with FCC educators. As a result, policies are often designed around assumptions that do not reflect the realities of small home-based programs. FCC educators have a powerful role to play in shaping these conversations.
Policymakers need to hear directly from educators about:
- What it takes to run a FCC business
- Why stable and predictable subsidy payments matter
- How administrative requirements impact small programs
- What families lose when FCC programs disappear
Personal stories and real experiences help policymakers understand how policy decisions play out in communities.
Your Voice Can Help Protect Family Child Care
Advocacy does not require being a policy expert. Sharing your experience as a FCC educator makes a meaningful difference.
Ways you can take action:
Share your story.
Personal experiences are often the most powerful tool in policy discussions.
Respond to advocacy opportunities.
Signing letters, submitting public comments, or contacting your elected officials helps ensure FCC voices are represented.
Invite policymakers to visit your program.
Seeing FCC in action helps policymakers understand its impact.
Stay informed and engaged.
Federal child care policy discussions are evolving quickly, and staying connected ensures you can speak up when it matters most.
FCC educators are essential to our nation’s child care infrastructure. As policymakers consider changes that could shape the future of subsidy programs, it is critical that they hear from the educators who support families every day.
Your voice matters—and right now, it is needed more than ever. Visit our Action Center to make your voice heard today.
