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Officials defend partial childcare scholarship freeze as advocates push to restore enrollments
Summary
DLS and MSDE officials told the subcommittee the childcare scholarship program surged to nearly 48,000 children, prompting a partial enrollment freeze while MSDE and the administration seek sustainable funding; advocates urged ending the freeze and funding provider rate increases and credentialing for the workforce.
Department of Legislative Services analyst Natalie Andrade told the subcommittee the Division of Early Childhood’s FY27 allowance is $966.1 million, driven chiefly by childcare scholarship and pre‑K formula increases. DLS highlighted that program enrollment surged to a record 47,811 children in June 2025 after officials announced an enrollment freeze effective May 1, 2025, and that a waitlist remained (DLS reported roughly 3,745 children / ~2,700 families as of Oct. 28, 2025).
MSDE officials, including Secretary Sanjay Rai and Chief Operating Officer Krishna Tallur, said the freeze was a fiscal decision to preserve long‑term stability while the department works with DBM and the governor’s office to prioritize waitlist recipients. Tallur reported CCS monthly enrollment of 40,840 (Jan 2026) and a total waitlist of 5,113, and said MSDE plans to prioritize children experiencing homelessness and families transitioning from Temporary Cash Assistance in accordance with COMAR 13A.14.06.08.
Analysts and MSDE both noted an estimated $33 million annual impact from updated provider market rate increases; DLS recommended the agency provide quarterly reports on expenditures, enrollment and the waitlist and proposed a federal fund efficiency to use available federal dollars to cover the freeze. MSDE said maintenance and operations costs for legacy systems (CCAT) are included in the FY27 budget and that a paused modernization will be reconsidered in 2026.
Advocates and provider representatives told the committee the 40,000 cap is arbitrary and harms families and providers. Laura Wheeldreyer of Maryland Family Network and SEIU Local 500 urged ending the freeze, raising reimbursement rates, funding credentialing programs, and protecting pre‑K expansion funding.
Lawmakers pressed MSDE on prioritization, the interaction of Head Start and the Ulysses S. Curry funding with public pre‑K, and the timeline for returning children from the waitlist to scholarship rolls. MSDE committed to follow‑up information and quarterly reporting on the program’s expenditures and enrollment status.
The hearing produced committee questions and requests for follow‑up; there were no formal votes.
Next steps: MSDE will provide additional details on prioritization and timing for waitlist reductions and continue coordination with DBM and the governor’s office.
