Trump's Funding Freeze Threatens Childcare in North Carolina

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RALEIGH, N.C. — The Trump administration has decided to halt federal payments for childcare services across the country following a fraud investigation initiated in Minnesota. However, in North Carolina, some lawmakers are expressing concern that this decision could significantly impact families and the broader economy.

One of the lawmakers, Representative Phil Rubin, is urging immediate action from the General Assembly. He highlighted the existing challenges facing the childcare system in the state, which have been exacerbated by a lack of a state budget.

“I’m really worried about it. We were already in a funding crisis for childcare in North Carolina for a couple of reasons, including the lack of a state budget,” said Rubin. “And so this is the thing that could actually tip it into failure.”

Rubin has co-sponsored a bill aimed at providing a long-term solution to the crisis by establishing a childcare financing agency. However, he emphasizes that the situation requires urgent attention, and there are steps that can be taken immediately to stabilize the system.

“There’s a few very concrete steps we could take right now, there’s a couple bills out there to stabilize the system with immediate funding,” he explained. “We could take over the payments to the providers and then we would fight with the federal government for reimbursement.”

A report from the Department of Commerce and NC Child outlines the significant impact of parents returning to the workforce. According to the data, getting parents back into the workforce could generate an additional $13.3 billion in annual economic input for the state and create nearly 70,000 new jobs.

Representative Rubin points out that the state is losing out on this potential economic boost if no action is taken. He warns that if childcare centers go under due to the current situation, the damage may be irreversible.

“If childcare centers go under because of this, even if we win a lawsuit later — even if it gets reversed in two months like this stuff always does when they do these illegal things — those businesses will be gone, they don’t just come back,” said Rubin.

Rubin is hopeful that Republican leadership will call for a formal session and take action. The General Assembly is set to return in ten days, and he is urging lawmakers to prioritize this issue.

The situation underscores the critical role that childcare plays in supporting working families and the economy. With the potential for significant economic losses and the risk of long-term damage to the childcare sector, the need for immediate and decisive action is clear.