The West Virginia Department of Human Services (DoHS) has addressed reports suggesting that child care centers are facing a funding crisis and potential closure if state action is not taken or additional funds are not transferred by the end of August.
These reports have been deemed inaccurate and are causing unnecessary confusion among child care providers and parents. The DoHS issued a statement to clarify the situation, which arises from a recent federal rule change regarding payments to child care providers.
A federal rule change was implemented in late February requiring payment to child care providers based on enrollment rather than attendance. The DoHS has been paying these providers based on enrollment since 2020, using a combination of federal American Rescue Plan Act (ARPA) funds and Temporary Assistance for Needy Families (TANF) funds. The department currently has sufficient TANF funds to continue these payments until the end of 2024.
Legislative leaders have been informed about the federal rule change and the department’s funding capacity using TANF. If these funds are exhausted by year-end, contingency plans may include utilizing a newly established reserve fund created during the most recent special session.
“Supporting our child care providers and the families they serve is a top priority for Governor Justice and the Department of Human Services,” said Cynthia Persily, Ph.D., Secretary of the West Virginia Department of Human Services. “We are doing everything in our power to ensure stability for both providers and families while including the Legislature as the appropriating body in discussions regarding budgetary and funding items.”
Some legislators have suggested that reserve funds from the 2024 special session could cover any shortfall. However, legislative leaders clarified that these funds were intended for use only if additional resources were needed before further appropriations by the Legislature. Since TANF funds will last through this year, there remains time for legislative action on appropriations.
The DoHS announced that if changes to child care eligibility rules become necessary due to funding issues, it would provide 60 days’ advance notice in writing to impacted families. As no such notice has been issued yet, DoHS continues its efforts to maintain this essential support system.
