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Providers say childcare subsidy underfunded as enrollment rises; ask council to restore $15M
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Summary
Under-3 DC coalition members, providers and child advocates told the Committee on Human Services that Mayor Bowser's FY26 proposal cuts the childcare subsidy despite rising enrollment. Witnesses said enrollment had risen to nearly 6,800 children after DHS/AFI enrollment simplifications and that proposed FY26 funding would not cover caseload; they
Lede: Childcare providers and early childhood advocates told the Committee on Human Services that the proposed FY26 budget would underfund the Child Care Subsidy Program just as enrollment rises.
Nut graf: Testimony from Educare DC, Under 3 DC coalition and sector advocates said the mayor's FY26 proposal reduces state subsidy funding by roughly $5.6 million while program enrollment has grown to about 6,796 children. Witnesses asked the council to add at least $15 million in FY26 to maintain slots and cover increasing infant care costs.
Body: Audrey Castleman (DC Action / Under 3 DC) presented numbers showing a mismatch between spending and caseload: FY24 spending was about $105.5 million to serve 5,570 children; FY25 funding fell to about $96.3 million and FY26 proposed totals appear to be roughly $86 million while enrollment has increased to nearly 6,800 children (transcript). Castleman said the subsidy program's funding must be raised to keep current families served and to maintain federal compliance.
Adam Barahan Smith of Educare DC emphasized the acute shortage of infant and toddler seats in Wards 7 and 8 and the gap between the maximum subsidy for full-time infant care (about $26,000) and the modeled cost of care (about $32,000), leaving programs with a per-child funding gap that drives higher tuition or lost slots.
Witnesses urged the committee to protect the $24 million allocated to DHS and to press the Committee of the Whole and OMB to identify the full funding need for subsidy caseload. They also urged changes to billing and payment timing to prevent nonprofit cashflow crises.
Ending: Advocates asked the council to add roughly $15 million to the childcare subsidy in FY26, preserve the $24 million in DHS subsidy funds, and launch a cross-committee review to set durable funding for the program so rising enrollment does not lead to reduced access.
