All states have considerable flexibility in the design and operation of their child care systems under existing federal statute and rules. This includes the payment practices they implement for their child care subsidy program. Consistent and timely subsidy payment policies and practices are critical to support the stability of child care operations, strengthen provider participation, and increase family choice by expanding access to child care that meets families’ individual needs.

On January 2, 2026, the U.S. Department of Health and Human Services, Administration for Children and Families announced a notice of proposed rulemaking (NPRM) in the Federal Register. The NPRM proposes to remove or modify some of the mandatory provisions included in the 2024 CCDF Final rule changes. Comments are due 30 days from publication on February 4, 2026.

 

Building off a busy legislative year for child care in 2023, we are already seeing earlyindicators of which states are prioritizing child careinvestmentsthis year.This is a key moment for states to prioritize child care, as it is unclear if there is a path forward in Congress to secure significant funding in 2024 before federal relief funding is fully exhausted and attention shifts to the November elections. This blog explores the states’ legislative landscape, governors’stated priorities and what’snext for states in 2024. 

Many states have made progress on supporting child care access, affordability, and quality during their 2023 legislative sessions. These actions are particularly noteworthy as 72% ($37.45 billion) of federal relief funding approaches its spending deadline on September 30, 2023.  

Federal relief for child care has been a lifeline to the sector. Congress approved $52.5 billion over three separate relief packages to help the child care sector recover and rebuild in the wake of the pandemic. Unfortunately, these one-time funds are dwindling as we are rapidly approaching state liquidation deadlines.  

This blog shares how the child care advocacy community can integrate first-hand stories of providers and early childhood educators to convey to policymakers what’s at stake when this funding runs out and— most importantly— make the case for continued robust federal investments.