Advocates and providers urge reopening scholarship slots as freeze strains programs and families
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Summary
Advocates and provider representatives told the Ways and Means Committee the partial scholarship freeze is forcing families into unregulated care, reducing provider revenues and threatening program stability; they urged reopening the wait list, targeted funding and private‑sector incentives such as employer tax credits.
Maryland Family Network, the Maryland Chamber of Commerce and provider groups described concrete harms caused by the partial childcare scholarship freeze and offered solutions to expand access and capacity.
Laura Wheeldreier of Maryland Family Network said families faced "desperation and hopelessness," recounted cases of parents leaving hospital visits early or moving in with relatives to afford care, and urged lawmakers to "open up the wait list" so parents can return to work and children can access licensed care. She noted recent capacity gains — nearly 300 new licensed programs and about 2,000 new slots — but said families cannot use that capacity while the scholarship program is frozen.
Mary Kane, president and CEO of the Maryland Chamber of Commerce, framed childcare as a workforce issue that harms hiring and retention if child care schedules do not match employer needs. Kane encouraged incentivizing employer participation through tax credits, targeted predevelopment funding and local property tax relief, citing models used in Pennsylvania, Georgia and New Hampshire.
Chris Push of the Maryland State Child Care Association presented survey data showing widespread program impacts: 78.8% of providers reported decreased enrollment and 83% said the freeze directly affected operations. Practitioners warned that recurring unpredictability forces providers to reduce classrooms, cut staff or absorb costs through fundraising.
Two providers described on‑the‑ground financial strain. Christy Morrell of Critchlow Atkins Children's Center said her program has about 50 empty scholarship slots (roughly $100,000 in lost revenue) and raises approximately $700,000 annually through grants and community support to cover the gap between what families pay and the true cost of care. Joanne Hurt of Wonders Early Learning said scholarship families represent 8% of children in their early learning programs and 17% of out‑of‑school programs; Wonders spends roughly 83% of its budget on staff compensation and expects to add to its financial assistance fund because of scholarship uncertainty.
Advocates and providers requested that the committee pursue both near‑term steps (raising the enrollment cap or targeted appropriations) and longer‑term strategies (stable revenue streams, improved reimbursement rates, regulatory streamlining and employer‑engagement incentives). Business and nonprofit witnesses said public‑private partnerships and new federal tax credits could be part of a mixed strategy.
Next steps: presenters said they would provide follow‑up data requested by committee members (county breakdowns, employer surveys and fast‑track analytics). Providers urged lawmakers to consider consistent funding to stabilize programs and allow investment in workforce compensation and quality improvements.