Missouri child-care providers are now receiving long-delayed payments after federal funds were temporarily held up, leaving many centers unsure how long they could keep their doors open.
State officials say the issue has now been resolved, but children's advocates warn it exposed a major vulnerability.
Casey Hanson, deputy director for Kids Win Missouri, said the delay wasn’t about money disappearing – but about a new federal process Missouri had to work through.
"In what's called Defend the Spend," said Hanson, "they were required to submit some additional documentation that isn’t always typically asked for, but they had to provide additional documentation about the subsidy program, about how funds are being spent."
Defend the Spend is a government initiative to make federal grantees prove they're spending money efficiently.
Hanson pointed out that the delay has drawn attention to Missouri’s reliance on federal funds, which make up more than 90% of the state’s almost $300 million child-care subsidy program.
The pause started late last December, leaving providers uncertain about payment for December care, until the state confirmed payments would start by January 16.
Hanson noted the delay also caused real anxiety for child-care providers who had already delivered care in December and were waiting to be reimbursed. She said the experience is already feeding into discussions about long-term funding stability.
"We do need additional general revenue from the state to sustain our subsidy program at the current levels," said Hanson. "And so, we're hopeful that this situation that happened can kind of help make the case for why we need more balance in how it's funded in Missouri, too."
She added that the governor’s proposed budget includes additional state funding for child-care subsidies, which advocates hope lawmakers will approve to help prevent future payment delays.
This story was originally published by Missouri News Service, a partner with KRCU Public Radio.
