US pandemic-era childcare subsidies end, removing up to tens of thousands of dollars a month from providers
The Receipt · Friday, 11 September 2026
Why it matters
Childcare is a direct household cost and a prerequisite for work and education, but this report primarily establishes the withdrawal of funding rather than showing realized changes in fees, employment, waitlists or availability. The scale of the lost support—up to $27,000 a month for an average West Virginia center—makes later data on closures, prices and access especially important.
What happened
Federal stabilization payments created under the American Rescue Plan ended after two years, cutting off funding for childcare providers nationwide; payments had ranged from hundreds to tens of thousands of dollars per month, with West Virginia centers receiving an average of $5,000–$27,000 monthly. Living Water Child Care Center in Williamson had been receiving $7,000 a month, later increased to $11,000 after it improved its state quality rating, supporting curriculum, staff certifications, equipment and bonuses. West Virginia’s Department of Health and Human Resources sent a final bonus payment and allocated $24 million in TANF funds to cover attendance-related subsidies for another year, but providers said those measures did not replace the expired stabilization grants. A Century Foundation analysis estimated that up to half of providers in five states and Washington, D.C., could be forced to close; that is an estimate, not a measured post-cutoff closure count.
Previously
Sep 2023 — West Virginia’s Department of Health and Human Resources sent childcare providers a final bonus payment as pandemic-era stabilization funds ran out.(West Virginia Department of Health and Human Resources via AP)
May 2022 — The median US childcare-worker wage was $13.71 an hour, compared with $10.47 in West Virginia, according to the US Bureau of Labor Statistics.(US Bureau of Labor Statistics via AP)
Oct 2021 — The American Rescue Plan Act began distributing $24 billion in stabilization payments to childcare providers across the United States.(American Rescue Plan Act figures via AP)
Oct 2021 — The American Rescue Plan Act provided an additional $15 billion to expand the federal block grant program subsidizing childcare for low-income families.(American Rescue Plan Act figures via AP)
Players & places
- United States
- West Virginia
- West Virginia Department of Health and Human Resources
- Living Water Child Care and Learning Center
- Century Foundation