A state agency has halted controversial rule changes that would change eligibility standards and reimbursement rates for child care subsidies.
Oklahoma Human Services officials announced Wednesday that they had withdrawn the proposed rules to address budget concerns and to allow more time for public input, according to a news release. The agency has voiced concerns that with the end COVID relief funding, its current spending is unsustainable.
“Continuing the pandemic-era level of spending is unsustainable without significant impacts to other vital services that Oklahomans depend on every day,” said Jeffrey Cartmell, director of Oklahoma Human Services. “We have a fiscal responsibility to taxpayers to maximize both the federal and state dollars entrusted to our agency. While we explore modifications to the subsidies and Quality Rating and Improvement System ratings, we will work to ensure minimal disruption to our Human Services partners and clients and find the best path forward for Oklahoma.”
The rule proposing changes to the child care subsidies would have changed the threshold to become eligible from 85% of the state median income to 70%, meaning a smaller portion of the population would be eligible. Subsidies are a type of financial assistance that helps low-income families pay for child care.
Rep. Suzanne Schreiber, D-Tulsa, previously voiced similar concerns with the proposed rule change.
“I have serious concerns that that is going to compound the loss of ARPA dollars,” she said. “Families no longer qualifying for subsidies will force less people to use child care because they will step out of the workforce because they cannot make the economics make sense for their family.”
American Rescue Plan Act, or ARPA, funding was used to help subsidize child care for parents and reduce co-pays. With this COVID relief funding, parents had a copay of $0. Oklahoma Human Services increased co-pays to 50% in 2023 to prepare parents for the return to 100% co-pays, effective Oct. 1.
According to the proposed changes to the quality rating system, the change would have aligned the system more with licensing requirements.
Oklahoma Human Services assigns child care centers a rating between one and five stars. A child care center rated five stars is allocated more funding per subsidized student. This funding decreases with the rating.
The rule changes would implement more requirements and inspections in order to earn a higher rating, while repeated violations would be more likely to drop a child care center’s rating.
The original projections “significantly underestimated the number of programs that would reach the highest levels,” according to the proposal.
“While quality child care is a priority, Oklahoma should maintain the standards in a way that ensures only the highest quality programs reach the highest levels,” Cartmell said.
The administrative rule changes must be approved by the Legislature and governor before going into effect.
A spokesperson from Oklahoma Human Services said the department intends to propose some kind of changes again after receiving more public input.
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