Kortni Johnson runs a small child care center in Berkeley County.
Johnson’s center receives federal subsidies for about 90% of the families she serves, meaning that stable reimbursement income is critical to keep the center open. Her center is licensed to have six children enrolled at a time.
Some kids come every day, while others come once or twice a week. But Johnson still has bills to pay and a family of her own to feed.
If the reimbursements were based on attendance, and a child missed a week with the flu, Johnson said she would lose an entire week of payments for that child.
That financial reality is why many providers depend on predictable reimbursement funding, even when attendance changes.
As West Virginia families already struggle to find child care, a new federal proposal could further destabilize the system.
Lawmakers have just under three weeks to push through legislation to help parents and providers if federal child care rules are reversed.
Federal rule repeal threatens stability
The Biden administration passed a rule that federal subsidies for child care, would be paid based on a child’s enrollment rather than their daily attendance.
It was designed to stabilize centers that must pay operating costs and staff, regardless of how many children attend on any given day.
Now, the Trump administration is working to roll back this rule.
Federal officials say it’s to limit “waste, fraud and abuse” in the child care system. If the rule is reversed, states could choose to pay providers only for the days children attend, decreasing revenue for child care centers.
Since 2020, West Virginia has paid providers based solely on enrollment.
But last year, the state changed to attendance-based reimbursement for centers that provide before-and-after-school care. Some providers have said it’s already costing them thousands of dollars a month in lost revenue.
If state leaders changed the policy for all child care providers, the potential impact would reach thousands of families across West Virginia. There are currently 1,120 providers serving about 40,000 kids across the state.
Johnson said if the current reimbursement structure changed, she wouldn’t be able to support her family or keep her center open.
“I’m terrified of it,” she said about the return to attendance-based payments. “I’d have to let families go or close my business.”
Families who qualify for child care subsidies in West Virginia have low incomes, typically qualifying if their household incomes are at or below 85% of the state’s median income. In 2024, the state’s median household income was about $63,000 per year.
And child care can cost nearly $10,000 a year per child in West Virginia.
Former federal Office of Child Care Director Ruth Friedman said the rule reversal would hurt child care providers who are already struggling, making it harder for them to serve families with child care subsidies.
“If you hurt the child care sector, you’re hurting everyone who needs and depends on child care in this country,” she said.
One lawmaker is pushing for stable child care funding
At least one lawmaker is preparing to ensure the state policy keeps payments based on enrollment no matter the federal rule change.
Del. Lori Dittman, R-Braxton, introduced legislation that would make it state law. Her bill is sponsored by several other Republicans and a few Democrats.
She said that child care is an important issue in the state because it affects the workforce, and preventing closures costs less than opening new centers.
“Working with our child care providers over the years, we know that is a huge need to change from attendance-based to enrollment-based payments,” she said. “If we want to keep our child care providers in business, and if we want to support our families, we’ve got to do that.”
The proposal focuses on preventing closures, not increasing the number of available child care slots. The bill would also cost the state no additional funding to implement, according to its fiscal note.
The House Health and Human Resources committee has discussed the bill and moved it to the markup stage.
“We’re definitely trying to move things forward,” she said. “That’s the impression that I’m getting, and that’s what I’m very hopeful about.”
Del. Evan Worrell, R-Cabell, chairman of the House Health and Human Resources committee, did not respond to repeated requests for answers on whether he plans to put the proposal back on his agenda for a vote.
For providers already operating on thin margins, the outcome could determine whether their centers survive at all.
Johnson left a 25-year career to build her child care business, and she’s not planning to go anywhere anytime soon.
“I put all my savings into this,” she said. “My heart and my soul.”