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Department of Early Childhood warns federal action could cut $91 million from child‑care budgets
Summary
Colorado's Department of Early Childhood told the Joint Budget Committee that a Jan. 6 federal notice restricting Child Care and Development Fund (CCDF) payments — temporarily blocked by a Jan. 9 court restraining order — could leave the state with an estimated $91 million shortfall this fiscal year and force continued CCAP waitlists and freezes unless the legislature or federal partners provide funds.
The Colorado Department of Early Childhood told the Joint Budget Committee on Jan. 14 that federal action this month put a major child‑care revenue stream at risk and could force program reductions unless reimbursed.
“We received … official notification from our Federal partners that funding from the Child Care and Development Fund, known as CCDF, would be restricted,” said Dr. Lisa Roy, executive director of the Department of Early Childhood. She said a federal Jan. 6 letter prompted potential limitations that were then paused when a court on Jan. 9 granted a temporary restraining order blocking the freeze.
Jeanne Stefanik, the department's chief financial officer, told the committee the agency is still drawing down some federal payments but warned of a potential state shortfall if ACF does not reimburse outstanding CCDF expenses. “Should the Administration for Children and Families not reimburse…
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