NASHVILLE, Tenn. (WTVF) — Thousands of families across the United States are on the brink of losing childcare services, while daycare workers fear unemployment as emergency federal funding to help these programs during and after the pandemic is set to expire.
This has prompted childcare providers to ask elected officials in Washington D.C. to step in and help.
Diesheka Bowers — the owner and director of Blessed Babies Learning Academy in Nashville — said this grant funding played a critical role in preserving childcare services.
"Being able to have a grant, we're able to hire more staff, and then people were shocked by how much we were paying them. And then on top of that, giving them bonuses. So, making the work environment great. It has helped us so much."
Bowers is not alone and countless childcare providers are in the same boat.
The lifeline they received was the $24 billion Child Care Stabilization Program, which was part of the American Rescue Plan Act enacted in 2021.
However, this crucial funding is set to expire on Sept. 30 unless Congress takes immediate action to extend it. The funding cutoff poses a severe threat to millions of children who rely on these childcare programs.
In Tennessee alone, 1,199 childcare programs could face closure, leaving thousands of parents in scrambling for a backup plan.
"I don't want to have to be where we don't have enough staff, where we have to close classrooms down, and then when we do that, it's a trickle effect. It affects everybody — it affects the parents, it affects the staff, it especially affects the children," Bowers said.
According to The Century Foundation, a progressive public policy group, the expiration of funding could result in the closure of 70,000 programs nationwide, eliminating over 3 million childcare spots.
In Tennessee, nearly 90,000 children are at risk of losing their care, and 3,893 dedicated childcare workers could be left jobless.
Childcare providers, like Bowers, are determined to keep their doors open as long as possible. However, they need financial support to continue offering this essential service.
"And I'll keep my staff as long as I can too if that means for me to take not being paid, whatever I have to do to keep them, I'll do that."
The crisis extends beyond Tennessee, with Kentucky facing similar challenges. More than 41,000 children in Kentucky could be affected, with over 500 childcare programs in jeopardy.
In response to these concerns, the Tennessee Department of Human Services (DHS) is exploring strategies to deploy regular Child Care Development Funds to childcare providers. The DHS issued a statement:
"While the period for deployment of American Rescue Plan Child Care Stabilization Funds expires on September 30, 2023, the period to deploy American Rescue Plan Child Care Discretionary Supplemental Funds goes until September 30, 2024. In Tennessee, we are allocating ARPA Child Care Discretionary Supplemental Funds for a final round of stabilization grants to child care providers."
The statement further emphasized the DHS's commitment to supporting childcare providers, including enhancement grants and the WAGE$ salary supplement program.
DHS told NewsChannel 5 in round one of the applications, 2,128 childcare agencies received grants. In round tow, 1,893 child care agencies received them
