Trump Administration Halts Childcare Funding Reform, Raising Concerns for Ohio Families and Providers
A federal childcare funding reform that would have brought greater financial stability to daycare centers in Ohio and other states has been halted by the administration of President Donald Trump, prompting concern among childcare advocates and policy analysts.
The reform, developed during the Biden administration, proposed changing how childcare providers are reimbursed. Under the existing system, daycare centers receive payment only for days when children are present. Providers argue this model creates chronic instability, since staffing, rent, utilities, and other operating costs remain fixed regardless of daily attendance.
The proposed change would have shifted payments to an enrollment-based model, allowing centers to receive consistent funding tied to the number of children enrolled rather than daily attendance. Supporters of the policy estimated the change would have brought approximately $70 million in additional funding to Ohio’s childcare sector each year.
According to discussion on the Today in Ohio podcast, the Trump administration blocked the reform in August. Podcast hosts said the decision will place added strain on already underfunded daycare centers and could reduce access to reliable childcare for families across the state.
Childcare providers have long warned that attendance-based reimbursement makes it difficult to plan staffing levels, retain workers, and maintain quality services. Industry data show that unpredictable funding contributes to staff turnover, classroom closures, and higher costs for families.
Laura Johnston, a co-host of the podcast, noted that while the federal reform has been halted, Ohio lawmakers could still act at the state level to offset the funding gap. She said no such action has been taken so far.
The podcast also questioned the response of Ohio’s Republican leaders in Washington, including Senators Jon Husted and Bernie Moreno, pointing to what they described as a lack of public engagement on childcare funding despite broader policy positions focused on children and education.
Federal officials have not publicly detailed the rationale for blocking the reform. The decision leaves the current attendance-based payment system in place, maintaining a structure that many providers say is misaligned with the realities of operating childcare centers.
As demand for affordable childcare continues to grow, policy experts say the debate highlights a broader challenge facing states: how to ensure stable childcare infrastructure while navigating shifts in federal priorities.
