Suburban child care providers concerned about federal funding uncertainties

The U.S. Department of Health and Human Services’ decision to freeze access to federal child care funds in Illinois and four other states was temporarily blocked by a judge late Friday.

However, the lingering threat has plunged suburban working families and child care providers into uncertainty.

In Illinois, funding through the Child Care Assistance Program (CCAP), administered by the Illinois Department of Human Services, is under threat.

“This is yet another politically motivated action by the Trump Administration that confuses families and leaves states with more questions than answers,” IDHS officials said in a statement when the freeze was first announced.

The administration’s move immediately drew the ire of Illinois Democrats in Springfield and Washington, D.C.

Gov. JB Pritzker blasted President Donald Trump and his administration.

“Rather than making life easier and more affordable for our families, Donald Trump is stripping away child care from Illinois families who are just trying to go to work,” Pritzker said.

Tuesday, HHS announced it would freeze the funding for child care subsidies until the states provided even more exhaustive documentation. The department said it also would withhold other federal safety net money for those states — California, Colorado, Illinois, Minnesota and New York — including Temporary Assistance for Needy Families, which supports low-income parents with children under 18 through direct payments and by providing them with child care.

Citing unspecified allegations of fraud, HHS said it “identified concerns that these benefits intended for American citizens and lawful residents may have been improperly provided to individuals who are not eligible under federal law.”

The move followed allegations about fraud schemes at Minnesota day care centers that have led to a widespread investigation and federal charges.

The five states, all led by Democrats, sued the Trump administration Thursday over the decision.

Friday, U.S. District Judge Arun Subramanian, who was nominated to the bench by President Joe Biden, ruled the five states met a legal threshold “to protect the status quo” for at least 14 days while arguments are made in court, but did not rule on the legality of the funding freeze.

Pritzker’s office noted about 100,000 Illinois families and 152,000 children depend on CCAP.

The Illinois Department of Children and Family Services website lists 3,018 licensed day care providers in Cook, DuPage, Kane and Lake counties. It does not list how many are eligible for assistance.

The planned freeze threatens to hit day care providers such as Kimberly Bianchini of Advance Early Learning Centers in Hoffman Estates, which serves 191 children — with 88% to 92% relying on CCAP.

“If these funds get cut, our families will not be able to go to work,” she said.

Head Start programs are also under threat.

Kelly Neidel, executive director of Two Rivers Head Start, which serves 241 children in locations such as Elgin and Aurora, said most families using these programs are living at or below the poverty line.

“We serve the highest-risk children,” she said.

CCAP provides subsidized child care to low-income working families through a tiered system based on income and family size. Families pay a monthly co-pay that varies according to their income — as little as $1 per month for families at or below 100% of the Federal Poverty Level, with copayments capped at 7% of family income.

Katherine Chismudy, assistant director at Lighthouse Academy in Elburn, which serves 75 families, 15 of whom use CCAP funding, said the freeze could hurt working families who depend on child care facilities, as well as the businesses that serve them.

“I would expect about 90% of people who use (the assistance program) to withdraw their children from care if those payments are to stop,” Chismudy said.

The state, she said, pays providers roughly $46 to $54 per day per child, depending on age. Without those payments, most families could face private pay rates of $75 or more per day — an increase few could afford.

Many child care workers themselves rely on CCAP benefits to afford care for their own children while working in the industry, Chismudy added.

Providers worry about losing staff.

Ashley Lawrence, who works at Two Rivers Head Start’s Elgin location, said her biggest concern is for the children.

“We work so hard here, we love them so much, and then that means that our job could just be cut immediately,” Lawrence said. “But for the kids, it’s sad, because a lot of them find this place and think of this place as their home.”

Some providers may have to take out loans to remain open if the funding freeze is upheld.

For providers whose income relies almost exclusively on subsidized families, the stakes couldn't be higher.

Christine Zenon, who operates a home day care in Elgin, said her business depends almost entirely on CCAP.

“That's how we pay our mortgage. That's how we pay our bills and everything,” she said.

She understands the need for accountability, but believes legitimate providers shouldn't be penalized since they are able to provide all the required documentation.

“For those of us that are running legitimate businesses, we have the certificates, we have the parent signatures, we have all of the items that we need,” she said.

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• The Associated Press contributed to this report.