Ohio Maintains Attendance-Based Child Care Payments Amid Federal Rule Changes
Ohio will not need to change its current practices to comply with new federal rules on publicly funded child care payments, Governor Mike DeWine said Monday. The U.S. Department of Health and Human Services recently rescinded policies that would have required states to pay providers based on enrollment rather than attendance. Under the revised guidance, states can continue paying only for days children are actually in care, and are not required to adopt contract models over parent-directed vouchers.
“The state of Ohio is already following all three of those,” Governor DeWine said during a news conference with Ohio Department of Children and Youth Director Kara Wente. “We pay facilities based on attendance, not on enrollment. Only the days a child is in child care are paid for.”
Ohio’s child care system includes multiple safeguards to prevent misuse of funds. Attendance is verified through a personal identification number (PIN) with photo confirmation or location-specific QR codes. The state also conducts regular unannounced inspections. In 2025, more than 10,000 visits were carried out across the state’s roughly 5,200 publicly funded facilities, resulting in 38 closures and two additional cases currently under administrative review.
Governor DeWine encouraged the public to report concerns about potential fraud. Last year, 124 tips were submitted, leading to findings that 61 providers had received overpayments totaling about $2 million.
In addition, the Department of Children and Youth has implemented measures to reduce PIN sharing. Over 65,000 families were reminded that PINs should never be shared, leading to 7,500 families resetting their codes.
The announcement comes amid a high-profile child care fraud scandal in Minnesota, which prompted federal authorities to temporarily freeze payments nationwide. DeWine emphasized that the situation in Minnesota should not lead to assumptions about child care operations in Ohio, particularly in communities with large immigrant populations. He urged against attempting to enter child care facilities without proper authorization, citing safety concerns.
State Representative Josh Williams has called for additional oversight, requesting more frequent unannounced inspections, especially in Columbus. He noted that while the state conducts two inspections per facility annually on average, there is potential to target facilities at higher risk of fraud. Williams is preparing legislation to strengthen oversight, which could be introduced as early as January 12.
Ohio’s approach aims to protect children while ensuring taxpayer dollars are used appropriately, maintaining transparency and accountability in the state’s publicly funded child care system.
