Subsidized child care providers across California have stepped up to the challenge of providing early learning and care for families with low and moderate incomes during COVID-19 – particularly for children with parents who are essential workers.
And yet, the Governor is proposing to cut provider payment rates by 10%. While the May Revision proposes using $125 million in federal emergency funds to provide one-time stipends to subsidized providers, that money will likely fall far short as compared to the long-term loss in their income due to the 10% rate cut.
Read our new fact sheet by Senior Policy Analyst Kristin Schumacher to better understand how detrimental rate cuts by the state could be for California child care providers who were already underpaid and operating on thin margins prior to the COVID-19 pandemic.
Plus, learn why using all available federal funds and maintaining payment rates is vital to helping providers survive the COVID-19 crisis, supporting families with low incomes who must leave their homes to work, and aiding the state’s economic recovery.
Support for this work is provided by First 5 California.
