Federal funding freeze threatens child care access for Colorado families

COLORADO SPRINGS, Colo. (KOAA) — A federal funding freeze could put a strain on Colorado's already limited child care system, potentially forcing low-income families to choose between work and caring for their children.

The freeze impacts the Child Care and Development Fund, which helps low-income families afford and access child care so they can work.

With child care already in short supply in the Pikes Peak region, local providers say the funding halt could make the situation worse for families and child care centers.

A recent University of Colorado Colorado Springs report shows there are nearly three preschool-aged children for every child care spot available in El Paso County.

With the federal freeze impacting Colorado Child Care Assistance Program funds, local leaders in the child care space say a gap like that could widen the longer the freeze continues.

Early Connections Learning Center, a Colorado Springs based nonprofit, cares for about 300 children each day across four locations. CEO Liz Denson said nearly two of every three families the center serves rely on CCCAP funding.

"When we see an impact to CCCAP funding, that has a significant impact to our children and families first who have to make really tough decisions of 'do I quit my job today? Because I don't have access to care any longer?'" said Denson.

Without federal money, parents may face difficult choices about their employment.

"If parents aren't able to access the funds, then they'll be staying home with their children, and many parents on CCCAP may not have jobs they can work from home for. So, they may quit their jobs," said Denson.

The funding freeze doesn't just affect families. A few months without federal money could also mean trouble for child care providers, according to Kelly Hurtado, whose organization works with child care centers.

"They will have to make tough decisions about starting to close down classrooms. What are they doing about their staffing," said Hurtado.

For smaller programs, the timeline could be very short.

"This really reminds me of what we walked through when we had COVID. For smaller programs, it's a very short timeframe. We saw programs shut down within two or three months," said Hurtado.

The White House says the federal freeze in Colorado and other states is due to fraud occurring through child care services. But Denson and Hurtado say Colorado has several safeguards in place, like fingerprinting parents at the door and checking attendance.

"It would be difficult for an early childhood provider to be fraudulent with these funds. There's multiple steps providers have to make twice a day," said Denson.

According to research by UCCS and Joint Initiatives, the average annual cost for child care in El Paso County is $20,000, more expensive than in-state college tuition.

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