Ohio childcare system earns progress marks, but funding gaps still raise concern
A new national review of childcare policies has placed Ohio among states making measurable progress in improving childcare assistance, while also warning that major funding and access challenges persist across the country.
The study, conducted by the National Women’s Law Center, found that Ohio has strengthened parts of its childcare support system, particularly through adjustments to payment rates and continued assistance for low-income families. However, researchers stressed that these gains are not yet enough to stabilise the sector long-term.
Childcare providers across Ohio continue to operate under pressure from high demand, staff shortages, and rising operational costs. Advocacy organisations, including Groundwork Ohio, have previously warned of a widening funding gap that could reach about $600 million by 2028 if current trends continue.
Eligibility limits and access concerns
Ohio remains one of several states that set eligibility for publicly funded childcare at or below 150% of the federal poverty level. The state currently maintains a 145% threshold for its Publicly Funded Child Care programme, although families slightly above that level may access support through the Child Care Choice Voucher system, which extends eligibility up to 200% of the poverty line.
While these programmes expand access, advocates argue that many working families still fall into a “coverage gap,” earning too much to qualify for full support but too little to afford market-rate childcare.
Payment rates and provider strain
The report also notes that Ohio reduced provider payment rates relative to some benchmarks used in the study period, even as base payments increased modestly in certain counties. In Franklin County, for example, monthly base payments in 2025 were about $1,005 for a four-year-old and $1,277 for a one-year-old, reflecting slight increases from the previous year.
Under Ohio’s tiered system, providers rated gold receive 25% above base rates, silver providers receive 15% more, and bronze providers receive 10% more. Despite these adjustments, the National Women’s Law Center cautioned that payment rates still strongly influence whether childcare centres can retain staff, maintain safe environments, and avoid turning away subsidised families in favour of private payers.
Family costs remain a barrier
Families enrolled in assistance programmes also continue to face copayments. The study found that in Ohio, copayments can represent around 7% of household income at 100% of the federal poverty level and up to 9% at 150%. Researchers warned that such costs can discourage participation in childcare assistance programmes, particularly for low-income working parents.
Ongoing policy debate
Ohio lawmakers have introduced several proposals aimed at stabilising the sector, including measures to expand eligibility for certain families, reduce administrative burdens on providers, and strengthen fraud oversight in publicly funded childcare programmes.
However, the study concludes that while Ohio has made progress, broader systemic challenges remain. It calls for stronger and sustained investment at both state and federal levels to prevent further strain on providers and families.
Researchers also flagged uncertainty around how wider policy changes, including potential adjustments to Medicaid and SNAP funding, could indirectly affect childcare stability.
“A significant commitment of federal resources is essential to create a strong childcare system,” the report noted, warning that without sustained investment, gains made by states could be difficult to maintain.
