Loss of federal funding for NY child care providers could be 'catastrophic' for families

Over 250,000 children in New York could lose access to child care after federal funding supporting child care providers throughout the state ended last month.

If providers throughout the state are forced to close, the impact on both the businesses and parents would be detrimental.

In Rochester, there are currently 675 child care programs.

"A shortage of child care providers in our state means that too many working parents have to make the impossible choice between going to work and taking care of their kids," Senator Kirsten Gillibrand said in a written statement. "A sudden lapse in federal funding that forces even more providers to close would be catastrophic for New York families."

• The $24 billion Child Care Stabilization Program, passed through the American Rescue Plan of 2021, expired Sept. 30, which is expected to cause a steep decline in federal child care investment.

• The program allocated $900 million to 15,000 eligible child care programs in the state, according to the New York State Office of Children and Family Services.

• But without the funding, 5,700 child care centers would be forced to close as the money helps child care providers with rent and mortgage payments as well as hire and retain personnel, Gillibrand said last month.

Would you like to share your experience with us about how the end of this federal funding is affecting you? Scroll to the bottom of this story or click here to connect with us.

What this means for NY child care providers, parents

At larger centers, it could most greatly affect employee pay and increase employee turnover rates, says Rochester's Child Care Council Inc. CEO, Jeff Pier.

"This funding is a great injection, but it's not continual," Pier said. "When you inject funds into a program, it's hard for a person or an owner to have sustainable wage increases ... because they're not going to have that revenue coming in on a regular basis."

And while the impact to these child care centers may not be immediate, he said there will be one.

"I think you're going to see programs have to look at their bottom line and their budget and see how they want to allocate their resources," Pier said. "I think down in New York City, you're going to see a massive impact, but I think here, in upstate, it's going to be slower."

THE NEWS MOVES QUICKLY. We break it down for you. Sign up for USA TODAY’S Israel-Hamas War newsletter for a run-down of the day’s headlines.

As for parents, according to The Century Foundation, a progressive public policy think tank, "(They) pay the greatest share of their earnings on child care in New York."

"We project that over 10,000 New York parents across the state would be forced out of the workforce, and an additional 74,000 forced to cut their hours, standing to lose a collective $846 million in household income," The Century Foundation's article on the end of the federal funds states.

Monroe County grants for child care providers

In Monroe County, the County of Monroe Industrial Development Agency is funding a $300,000 investment to help the Rochester Childfirst Network reach its goal of launching 10 new in-home child care businesses in 2024 by providing grants.

The grants would give $20,000 to child care providers who want to launch an in-home child care business or who want to open a second location. The program will also provide grants of up to $2,000 to existing daycares to cover documented, eligible expenses.

Gillibrand announced legislation in September to try and soften the blow this loss of federal funding will have on child care centers around the country.

"New York State, upstate New York, Monroe County, specifically, is doing everything it can to help families afford care and help programs stay open," Pier said.

We'd like to hear from you!

How are you being affected by the loss of federal funding?

If you're a child care provider, have you had to close down your business? Are families with children in the child care system struggling to find a child care provider?

We’d love to hear your concerns, and explore them further with our coverage! Fill out the form below and your submission will go straight to a USA TODAY Network reporter. We may reach out to you if we want to know more about your experience.

Federal child care funding to end: Sept. 30 may represent child care cliff as emergency federal funding runs dry

USA TODAY reporter Bailey Schulz contributed to this report.

Emily Barnes is the New York State Team consumer advocate reporter for the USA TODAY Network. Contact Barnes at ebarnes@gannett.com or on Twitter @byemilybarnes. To get unlimited access to the latest news, please subscribe or activate your digital account today.

MORE BACKGROUND:

• The Child Care Stabilization Act looks to provide $16 billion in mandatory funding to child care providers each year for the next five years, extending the federal program ending this month and helping to ensure providers can cover the costs of wages, benefits, rent, utilities and supplies.

• Gov. Kathy Hochul also included a $7.6 billion investment over four years in the state's 2024 executive budget, which aims to make the child care system more accessible and affordable by expanding resources and creating a Workforce Retention Grant program, Employer Child Care Tax Credit and Employer-Supported Child Care Pilot program.

• And $15 billion in funding through the American Rescue Plan to expand the Child Care and Development Block Grant, which helps low-income families pay for child care, is still in use but is set to expire at the end of September 2024.

This article originally appeared on Rochester Democrat and Chronicle: Here's what end of federal program means for NY child care providers