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Early Childhood Officials Warn CCAP Fund Pressures, Report CCDF Draw Restriction Under Temporary Restraining Order
Summary
The Department of Early Childhood told the committee it received a federal notice restricting CCDF draws (temporary restraining order in place) and described CCAP freezes, universal preschool enrollment progress, and near‑term strategies to reduce CCAP waitlists and protect providers.
Dr. Lisa Roy, executive director of the Colorado Department of Early Childhood, opened the Smart Act segment by reporting that the department had received notice on Jan. 6, 2026 that the federal government had restricted Child Care and Development Fund (CCDF) draws; a temporary restraining order paused implementation and the department had made several draws since the injunction. She told members the pause is temporary, litigation is pending, and the department is pursuing restoration and working with counties and federal partners.
Don O’Dean, Universal Preschool director, summarized the program’s second full year: UPK served roughly 43,394 four‑year‑olds (~68% of the eligible population) with strong provider participation and a 70% enrollment goal met for the 2026 program year. UPK aims to expand quality standards and maintain provider satisfaction; Ms. O’Dean recounted provider growth and a multi‑year evaluation.
CDEC’s chief program officer Mary Alice Cohen explained the CCAP fiscal crisis: a federal stimulus roll‑off, a required provider rate increase tied to federal compliance, and continuous eligibility rules have together created county freezes and waitlists in many counties. CCDF roll‑forward balances have been used to cover program appropriations in past years; with federal draws constrained the fund balance could deplete and counties must use freezes/waitlists to contain costs. Cohen said the department is working with a CCAP allocation committee of counties to move some counties from freeze to waitlist and exploring stacking with UPK, waiver options, and temporary pauses on non‑required activities to preserve direct services.
Committee members pressed the department on details of CCDF status, contingencies if the injunction is lifted, and whether additional state funding or re‑prioritization could re‑open enrollment. CDEC said it is pursuing multiple paths—legal, federal waivers, and operational policy changes—and that any additional funding allocated to CCAP would go to direct services rather than new central staff.
