The Trump administration is preparing to eliminate a Biden-era rule designed to “pay providers more fairly, lower parent costs and help increase the child care supply,” according to the former director of the Federal Office of Child Care.
The current federal rules were intended to stabilize the child care system, Ruth Friedman, who led the office from 2021 to 2025, said.
“The Trump administration claims it’s about cost savings,” she said. “But the way states are saving money is by putting the costs back on child care providers.”
West Virginia’s child care system struggles with worker shortages and closures. If approved, the changes could affect how West Virginia supports providers and families who rely on subsidies.
Here’s what to know.
What are the Trump administration’s proposed changes?
The Federal Department of Health and Human Services is working to rescind several Child Care and Development Fund rules passed in 2024, which states were required to implement by this year.
The CCDF program is the primary federal fund states use to provide federal assistance to low-income families who need child care.
The 2024 rules required states to pay providers based on enrollment instead of attendance, issue payments upfront and cap how much families pay out of pocket.
In the attendance-based system, providers are paid only for the hours and days a child is physically present. Enrollment-based billing allows providers to receive income if a registered child misses a day every once in a while.
Secretary of Health and Human Services Robert F. Kennedy, Jr., said the proposed changes would increase oversight and prevent misuse of federal funds.
Sarah Bolyard, president of the Kanawha Valley YMCA, said the proposed rule to reverse how providers are reimbursed not only puts centers at risk, but also the children they serve.
“Attendance is not just walking through the door like you attend church,” she said. “It’s broken down into an hourly rate, which does not support how (these) businesses are run.”
Why were the Biden-era rules put in place?
The federal child care funding rules aimed to make funding more stable for providers so they could reliably cover payroll, rent and operating costs, even when attendance fluctuated.
For years, child care advocates across the country pushed for sweeping changes to the national child care system, including standardizing enrollment-based payments for providers because their costs don’t change when a child is absent.
If the rules are repealed, Friedman said states would regain flexibility in how they pay providers, including whether to reimburse centers based on attendance or enrollment.
But that flexibility could also mean less financial stability for providers, especially in states where child care systems are already strained.
And families living in rural communities feel the pressures associated with a lack of adequate child care more than in urban areas, where there is more access to care.
Some families have had to miss work, leave their jobs or cut back on other household expenses to afford care for their children.
How does the current child care system work in West Virginia?
West Virginia relies heavily on federal child care funding. The state received nearly $77 million through CCDF last fiscal year, according to the Department of Human Services.
The state has used the enrollment model for reimbursements since 2020.
Even with that funding model, access to care is limited. More than 25,000 children in West Virginia lack access to child care, and with about 1,200 licensed providers, families in some areas wait months for open slots.
In September, the state changed how reimbursement works for centers that offer before-and after-school care, basing it on attendance.
If a child does not attend at least four hours a day once a month, providers won’t get full reimbursement.
Providers were confused by the change in policy, and some instantly saw losses of thousands of dollars a month.
Melissa Colagrosso, owner of a child care center in Oak Hill, said she lost $12,500 after September billing.
“I (had) already provided the care, paid for the staff to be there and paid my utilities, anticipating the same amount of money would come in October,” she said.
What could change if those rules are rolled back?
If the reimbursement rule is rolled back, it would then fall on West Virginia officials to decide how providers are paid and whether enrollment-based reimbursement remains in place.
That decision would affect whether providers can maintain predictable revenues and whether families can afford care.
Angelica Hightower, a spokesperson for DoHS, said the department can’t speculate on the effects of the proposed changes.
She stated that the department will implement applicable federal changes once finalized by federal officials and will consult with families and providers by hosting listening sessions.
The public comment period for the proposed rules has already closed.
Child care providers say even small changes to reimbursement can quickly affect staffing, classroom capacity and the number of children they can serve.
Many centers in the state already operate on thin margins, and funding changes can make budgeting more difficult.
Bolyard said the state would see more centers close if these rules were rolled back because they wouldn’t be able to sustain the financial impact.
She said, “Rolling these back would be a significant hardship on our organization as well as any other child care provider across the state and the nation.”
This story was originally published by Mountain State Spotlight. Get stories like this delivered to your email inbox once a week; sign up for the free newsletter at mountainstatespotlight.org/newsletter
