DoHS Assures Stability for Child Care Providers Amid Federal Rule Changes

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The West Virginia Department of Human Services (DoHS) is aware of several reports suggesting that child care centers are facing a funding crisis and potential closure if State action is not taken or additional dollars are not transferred by the end of August.

These reports are not accurate and are needlessly causing confusion and worry among child care providers and parents alike. This statement is being issued to correct and clarify the record, which stems from a recent federal rule change regarding payments to child care providers.

A federal rule change was implemented in late February of this year to require payment to child care providers to be based on enrollment rather than attendance. DoHS has been paying these providers based on enrollment rather than attendance since 2020, using a combination of federal American Rescue Plan Act (ARPA) funds and Temporary Assistance for Needy Families (TANF) funds from the federal government. DoHS currently has funds to continue paying providers at these elevated levels by using available TANF dollars. These TANF funds will continue to be used to pay by enrollment until they are fully expended, which is now anticipated to be at the end of 2024.

DoHS has informed legislative leaders of the federal rule change, as well as its funding capacity using TANF. If these funds are exhausted by the end of the year, other contingency plans could be utilized, including dipping into a newly established reserve fund created during the most recent special session as may be necessary.

"Supporting our child care providers and the families they serve is a top priority for Governor Justice and the Department of Human Services," said Cynthia Persily, Ph.D., Secretary of the West Virginia Department of Human Services. "We are doing everything in our power to ensure stability for both providers and families, while including the Legislature as the appropriating body in discussions regarding budgetary and funding items. "

Although some legislators have suggested that the reserve funds created in the 2024 special session could be used to cover the shortfall, legislative leaders have been clear that the intent of these funds was to be available only should there be a need for additional funds prior to the Legislature convening and taking up further appropriations. As the TANF funds will not be exhausted before the end of the year, there remain several months when the Legislature may convene and take up appropriations.

In any event, as previously announced by DoHS, if a change to child care eligibility rules becomes necessary for any reason, including due to a lack of funding, DoHS will provide 60 days advance notice in writing to impacted families. At this time, no such notice has been issued, as DoHS continues to work diligently to maintain this vital support system.