ROGERS, Ark. — The possible government shutdown, along with another shift in federal funding could impact child care.
Since 2020, Congress has allocated $24 billion in pandemic-related funds toward childcare programming, but now, we are reaching what’s being coined the “childcare cliff."
Those funds are about to expire, but with Congress's attention diverted toward avoiding a government shutdown, there's no relief in sight to replenish that money.
The Kindergrove Preschool and Childcare Center says this could be detrimental to it's company and parents.
Out of about 130 children at Kindergrove, 25% use federally funded aid programs towards their tuition. Those families may lose their child care if government financial assistance ends on Sept. 30, 2023.
Kindergrove says they can pull from savings to sustain themselves for a few weeks, but there’s only so much that can be done.
“If it's prolonged, then it could potentially mean having to drop those children. And then parents may find that they have to find childcare again, once the government's back up,” says the Owner and Director of Kindergrove, Sonia Keith.
She says many centers all across Northwest Arkansas and the rest of the state wouldn't be able to sustain for more than a week or two.
"There are many centers that are literally living week to week. And, you know, a one - two week shutdown could be detrimental to them," Keith adds.
Some Democrats are pushing to give the industry a new lifeline with a bill that would invest 16 billion dollars a year for the next five years. But with lawmakers' attention towards avoiding a shutdown and no republican support, the bill doesn't seem likely to pass.
The Century Foundation says it's projected that 70,000 federally funded childcare programs could close their doors and 3.2 million children could lose their care, but if Congress can prevent the shutdown, the loss in funding may be mitigated.
Kindergove says the worst outcome for the center would be the need to lay off upwards of 80% of its staff depending on how long the shutdown lasts.
Keith says, “I think that for the most part, our families do understand. But I know from talking to fellow directors of other local preschools that they, they've had families really struggling to find affordable childcare, and you know, they maybe had to leave when rates went up."
Kindergrove says licensed at-home care centers are typically cheaper and may be a potential alternative for parents affected by the cease in financial aid.
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