Over several months, Oklahoma Human Services (DHS) has made significant cuts to the child care subsidy program it administers, citing factors like rising enrollment and the expiration of temporary federal COVID-era funding. Now, it’s asking the state legislature to help it undo those changes with a $57 million appropriation.
The agency presented its budget request to the House Appropriations and Budget Committee Wednesday, which also asks for $11.5 million to support child care teacher recruitment and retention.
What has changed?
Those reductions started during the federal government shutdown, when DHS announced the removal of a $5 per day add-on to providers’ subsidy rate schedule – implemented during the COVID-19 pandemic – for children ages six and older. It also halted new applications and renewals for these children, with certain exceptions.
The Licensed Child Care Association of Oklahoma sought a temporary restraining order against this directive, but Oklahoma County District Judge Natalie Mai declined to grant it in December. DHS is seeking to dismiss the suit in court on Monday.
A month later, following the receipt of partial federal funding, the agency reinstated subsidy access to children ages six through eight. It also shared upcoming changes. DHS said the goal is to create a more stable and predictable program, while allowing providers and families time to plan.
Starting April 6, the $5 per day add-on – which DHS said was funded through "time-limited federal pandemic resources that are no longer available” – will end for children of all ages. And, in July, DHS is altering the child care subsidy income eligibility from 85% of the state median income to 55%, impacting around 5,800 families.
Together, these policies mean fewer children will be eligible and less money for providers.
DHS budget presentation
In total, DHS is seeking about $70 million for child care.
Part of that funding ask would go toward the Oklahoma Strong Start Program – an initiative designed to support recruitment and retention. House Bill 2778 by Rep. Trey Caldwell, R-Faxon, and Sen. Chuck Hall, R-Perry, made the way for this three-year pilot program, which expands access to Oklahoma's child care subsidy program for employees of child care facilities.
It’s administered by the Oklahoma Partnership for School Readiness, which serves as the state's Early Childhood Advisory Council – in coordination with DHS. Startup funding was made possible through federal Preschool Development Grant funding. Rep. Suzanne Schreiber, D-Tulsa, who originally authored the policy on this incentive, said it has 585 participating teachers.
Now, it’s the state’s turn to chip in. DHS is asking for $11.5 million to fund the program during the next fiscal year. But Schreiber said based on available data, it will likely cost less than that to run the program.
“So a new budget, I think, will be submitted and talked about and evaluated,” Schreiber said.
The agency is also requesting over $57 million to return the child care subsidy program to how it operated before changes were made, said DHS Director Jeffrey Cartmell.
“It will enable us to continue to serve the 40,000 kids on the subsidy program that we were serving at the end of September,” Cartmell said.
At that point, the program cost around $280 million to run. But the budget for the largely federally funded effort was around $230 million. Historically, he said this gap was covered by excess Temporary Assistance for Needy Families funds and other federal buckets of money. Those ran out in April 2024.
“We have exhausted that option without significantly impacting other resources and other very important programs as well that are also funded by TANF and other things,” Cartmell said.
Tammy Maus, president of the Licensed Child Care Association of Oklahoma, said that although the money is needed, providers still wouldn’t get paid enough. She said it’s difficult for heavily subsidy-based facilities to compete with other businesses.
“We are behind, and if we continue that, we're going to continue to be lagging behind, and we'll never catch up, and we're not going to be able to meet the needs of children and families,” Maus said.
A&B Human Services Subcommittee Chair Rep. Daniel Pae, R-Lawton, said child care is a top priority for him this session. Earlier in the day, Pae participated in a webinar with United WE, which works to advance women’s economic and civic leadership through research, policy solutions and civic engagement.
There, he and Rep. Trish Ranson, D-Stillwater, shared support for legislation that would create an Early Childhood Task Force. It would focus on streamlining regulations, reducing administrative burdens and increasing efficiency – thereby helping providers focus on care.
“I hope to work with all of you and your team to make sure we get it right, because it's really, as was mentioned before, a fundamental workforce issue that we have to get right for our state's future,” Pae said.
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