Child‑care health benefit at risk in FY26 budget; providers urge $1.4 million boost and durable funding

Child‑care providers and educators told the Committee on Health on June 5 that the city’s Health Care for Child Care program has meaningfully increased access to employer‑sponsored health insurance for early childhood staff — but the initiative is at risk unless the Council restores recurring funding.

Multiple witnesses asked the committee and the Council to add $10 million in recurring funds to the Pay Equity Fund, including $1.4 million specifically to maintain and expand Health Care for Child Care. "Health Care for Child Care has made a huge impact on my family," said Julie Luhan, a child‑care owner in Ward 1. "I was paying almost $3,000 a month for health insurance for my family. Consequently, this program has allowed nearly 2,000 people to have better access to preventative care," she said.

Advocates and providers described the program as a workforce stabilization tool. Anne Gunderson of the DC Fiscal Policy Institute told the committee that Health Care for Child Care covers nearly 2,000 people across about 220 facilities and that, because of funding constraints, the Health Benefit Exchange placed new applicants on a wait list in January 2025. Gunderson recommended a $1.4 million increase in FY26 to sustain current participants and enroll facilities on the wait list.

Owners and brokers described day‑to‑day effects. Child care owner Sabrina McCraw said the program reduced her personal monthly premium from about $900 to $100 and allowed several staff members to retain coverage. Chris Farmer, an insurance agent who helps child‑care employers enroll, said the program reduced turnover by removing the need for staff to seek higher‑paying jobs simply to obtain health benefits.

City budget materials and witnesses also referenced the broader Pay Equity Fund. Witnesses thanked Councilmember Henderson for originally championing the fund and asked that recurring dollars be secured for FY27 and beyond. Some witnesses flagged a mayoral proposal that preserves a current funding level for FY26 but eliminates out‑year pay equity allocations, which they said would jeopardize program continuity.

Council members acknowledged the program’s early success but noted that out‑year funding remains uncertain. Chair Christina Henderson said the committee needs to ensure FY26 is solid and to address the wait list. Witnesses and council members agreed to supply written materials to the record.

If the Council does not act to restore recurring funds for Health Care for Child Care and the Pay Equity Fund, providers warned it could reverse recent gains in workforce stability and access to preventive care for early educators.