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Childcare officials warn of federal cuts; CCDF and other grants shrinking for FY2026
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Summary
Childcare licensing and CCDF administrators told lawmakers federal CCDF funding is down — current funding cited at $8 million, a $2 million decrease from the prior year — and national cuts of 3.5–6% are projected; administrators said they will seek private foundation grants to offset shortfalls.
Childcare program administrators told the House Ways and Means committee on July 17 that federal funding for childcare services is declining and that the department is pursuing other grants to bridge gaps.
Department officials said the Child Care and Development Fund (CCDF) is fully federally funded this year at about $8 million, a decline of roughly $2 million from the previous year. Child care licensing staff said they were granted an additional FTE for FY2026 but warned that national funding trends show cuts between 3.5% and 6% in some jurisdictions and that the CNMI could see a similar reduction.
Why it matters: CCDF supports childcare centers, home-based relative care and after-school programs across Saipan, Tinian and Rota. Officials said reductions would affect program operations and local families who rely on childcare for workforce participation.
Officials said they are actively pursuing nonfederal grants and private foundation funding (including past awards that funded preschool development and other initiatives). The childcare director told the committee the agency applied for additional foundation grants (examples cited in testimony) and planned to submit proposals to private funders to offset federal declines.
Committee members pressed for details on staff levels and the potential operational impact; department administrators said they will continue to seek competitive grants and to use program income where allowable. No formal action or vote took place during the hearing.
