05/12/2026

Today, the Trump Administration released a final rule for the Child Care and Development Fund, rescinding regulations designed to ensure improved payment practices for child care providers and ensure families relying on subsidies can equitably access the child care they need.  

While still allowing states to leverage these practices, the final rule rescinds regulations that required states to:

1. Ensure providers serving families receiving subsidy are paid based on enrollment, rather than attendance;
2. Ensure providers serving families receiving subsidy are paid prospectively, rather than retroactively;
3. Leverage grants and contracts to serve certain populations of children for whom child care is more difficult to access; and
4. Cap family copayments at 7 percent of family income.

In response to the publication of the final rule, which goes into effect in 60 days, Daniel Hains, NAEYC’s Chief Policy and Professional Advancement Officer, released the following statement:  

“Families who rely on child care subsidies should have the same access to high-quality child care options as those who pay tuition, and providers who serve families leveraging subsidy should not be penalized for doing so. That is why NAEYC is disappointed by the Administration’s decision to rescind regulations that required states to pay child care providers serving families relying on subsidies in the same way that most families paying for child care do. Child care providers have been clear that they need timely and predictable payments to support the stability of their businesses so that they can provide high-quality care for families relying on child care subsidies. We urge state policymakers to listen to the early childhood education field and to continue to prioritize subsidy payment practices that are supportive of providers and the families they serve, even in the wake of these federal requirements being rescinded.”