A Biden-era rule sought to stabilize child care. Why Trump wants it gone

"That staff comes ready to work, maybe spent gas [money], maybe took an Uber, a bus to get here, and then six kids are out and I know the numbers are down. I have to send that staff home. That's because many states, including Illinois, use their own money and federal funds to pay out child care subsidies for low-income families based on attendance."

"In 2024, the Biden administration finalized a rule aimed at giving providers like Wright more predictability. The rule requires states to pay child care subsidies the way most American families pay tuition in advance and based on enrollment, not on who shows up. A number of states have made the switch."

"Families that don't qualify for subsidies and instead pay for child care on their own typically pay up front. They're on the hook for the tuition whether their children attend or not, so providers can count on that income."

Child care providers in low-income communities face significant financial challenges due to attendance-based subsidy payment systems. Michelle Wright, who operates two child care centers in southwestern Illinois where 90% of families receive subsidies, struggles with unpredictable income when seasonal illnesses and weather reduce attendance. When monthly attendance falls below 70%, providers lose expected income and must send staff home despite their travel expenses. The Biden administration implemented a rule requiring states to pay subsidies based on enrollment rather than attendance, similar to private pay tuition models. Several states adopted this change, but others including Illinois sought waivers. The Trump administration has proposed eliminating this rule, citing fraud concerns.

Read at www.npr.org