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DHS withdraws and reconsiders child care quality rules as subsidy costs surge; agency proposes $240M sustainable target
Summary
DHS informed lawmakers that recent changes to subsidy eligibility and the child care quality rating system, together with the expiration of some federal funds, expanded subsidy enrollment and sharply increased program costs.
Department of Human Services officials told the Appropriations and Budget Committee that recent rule changes to child care quality ratings, expanded subsidy eligibility and the end of some federal funding combined to increase program costs and enrollment.
Cartmell said the state broadened subsidy eligibility in 2019 and later overhauled the quality rating system implemented in early 2023. He told the committee the quality rating changes — including removal of a national accreditation requirement in 2022 and later adjustments — shifted many providers into higher rating tiers and, together with an estimated increase of roughly 10,000 children on subsidy, added…
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