KSHB 41 News reporter Braden Bates covers parts of Jackson County, Missouri, including Lee's Summit. Braden followed up Friday with Lee's Summit and Raytown daycare providers as they try to find a way to survive a federal funding delay. Send Braden a story idea by e-mail.
A federal freeze on childcare subsidies is forcing Missouri daycare providers to make difficult financial decisions.
One provider borrowed money to pay staff salaries and others face closure within weeks if the money is not available.
The funding crisis started after fraud investigations at daycare centers in Minnesota.
In response, the federal government froze nearly $10 billion in childcare funding for five states: California, Colorado, Minnesota, New York and Illinois.
While a federal judge temporarily blocked the order, the impact spread beyond those states.
More than half of all childcare providers in Missouri were impacted by delays in federal payments after the government changed documentation requirements.
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Delayed federal payment threatens to upend Missouri’s childcare system
The Missouri Department of Elementary and Secondary Education said it learned about the change and complied on Friday, but the delay already put providers in difficult positions.
Essence Britton owns She Cares Daycare in Raytown, Missouri. Britton said nearly 50% of the 16 children under her care receive federal subsidies.
"This place is a home for these children," Britton said. "What I do I'm doing it actually to pour into the subsidy communities, the poverty communities, and I see a lot as a childcare provider."
Without the funding, Britton said she solely relies on her cash-paying clients.
"My cash-paying side, for the moment, is allowing me to still run my business, but that's only gonna last for so long," Britton said.
She said that if she doesn't get the money, she may have to turn away families.
In Lee's Summit, Michelle LaPlant said between 35% and 40% of her students receive childcare subsidies. She's had to make hard financial decisions.
"I had to borrow money to cover payroll for next week because I haven't been paid for the services that we already provided in December," LaPlant said.
She said her landlord allowing her to hold off on rent.
"I have to make payroll next week, and if the funds don't come, it will be a matter of one week, two weeks that I have to make those decisions," LaPlant said.
She said not getting the December payment means she's short about $25,000. That will double if another month is missed.
Both providers emphasized that the subsidies allow them to provide a solid early education to lower-income children. Losing that money could mean the children will not get the education they need.
"It concerns me for the future of the country. These children are the future. And they need to be educated and given everything that they need," LaPlant said.
The Missouri Department of Elementary and Secondary Education said in a press release: "We understand the importance of verifying these dollars are spent appropriately, given recent events in other states."
The department said it's working with the federal government to get funding.
Until then, providers like Britton are hoping for a quick resolution.
"I'm praying that this is fixed before I have to start turning families away and telling them that they have to find somewhere to go or I can no longer service them," Britton said.
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