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Childcare funding ending

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RALEIGH, N.C. – The end of September marks the end of the 2023 fiscal year and with it several pandemic-era grants. 


What You Need To Know

  • Grants provided by the American Rescue Plan Act will expire at the end of the month
  • An estimated 150,000 kids in North Carolina will lose child care
  • North Carolina is looking for ways to extend funding

Emergency child care funding Congress created during the pandemic is set to expire in just over a week. The funding came from the American Rescue Plan Act, which allotted $24 billion for child care stabilization grants. According to the N.C. Department of Health and Human Services, over 220,000 providers received grants, the majority of whom operate out of their homes. 

Jennifer Murillo stacks counting blocks with a child in her home care operation. (Spectrum News 1/Rachel Boyd)

“It was a huge blessing when I heard it, because being open almost 11 years now, I haven’t really made any money,” said Jennifer Murillo, a child care provider. 

Murillo started her business with the goal of creating a safe space for her own children and others to learn and play. The grants were an unexpected blessing that eased some of the stress of trying to make ends meet. 

“Prices have increased on everything, and I need to be able to upkeep this and have a safe place for the kids,” Murillo said. 

According to research by the Century Foundation, over 150,000 kids in North Carolina will lose access to child care once the funding ends. They also expect over 1,700 child care programs to close. 

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“It’s tight, but again, I have faith that God will provide for me no matter what,” Murillo said. “I’m thankful for the families that I do get to care for.”

Child care funding is just one of many pandemic-era programs that will expire at the end of September. However, some lawmakers are looking to extend child care support or even make it permanent.

NC Child said some language in the budget allows the state Division of Child Development and Early Education to use federal relief funds to extend compensation grants. It estimates this could provide another six months of funding.



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