BEMIDJI — During a time of uncertainty surrounding federal funding for child care providers, U.S. Sen. Tina Smith’s Outreach Director for Childcare Carson Oullette visited Pine Pals in Bemidji on Thursday to discuss what is being done to address these concerns.
In January, the Trump administration issued an executive order that directed federal agencies to pause grants, loans and federal assistance programs before judges temporarily blocked the order.
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Then in early February, Rep. Pete Stauber led Minnesota’s Republican Congressional delegation in to Gov. Tim Walz demanding “answers and accountability,” after claiming that 62 investigations have been opened “to look into federally funded child care centers in Minnesota for fraud and other serious violations.”
These developments have many child care providers uncertain about their futures. During his visit to Pine Pals, Oullette stressed the importance of federal funding when it comes to these services, whether it helps the providers pay their employees or helps families afford the cost of care.
“We’ve passed the point where you can ask families to shoulder the burden that this care costs, and we’re at the point where you can’t afford to pay people what they deserve for how important this work is,” he said. “(Sen. Smith) understands that no matter what approach you take, the federal government needs to come in with funds to add funds to the equation.”
In the days following the block of the federal funding freeze, child care programs that heavily rely on federal grants like Head Start were still experiencing delays in accessing funds, according to the National Head Start Association.
“Ten days after the temporary federal payment freeze, dozens of Head Start programs are continuing to face challenges drawing down approved grant funds,” the NHSA website reads. “Though the cause of the problem is unclear, this has a significant impact on Head Start which relies on steady, predictable access to operating funds in order to keep its doors open and serve children, their families, and the communities in which it operates.”
In extreme cases, Oullette noted that issues accessing this funding can lead to centers shutting down, creating a gap in the need for child care providers.
“We heard from a Head Start program that, for a couple weeks … was locked out. They could not access the funds that they normally were able to access,” he said. “It just left them wondering at what point do they close their doors, and if the more formal conversation is that Head Start needs to be cut, it’s just a matter of where do those kids go?”
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These issues are leading many child care providers to have concerns about the future of their federal funds and grants.
“Child care providers like Pine Pals are critical to families and local economies, especially in rural communities where options are already limited. We should be doing everything we can to support them. But instead, it’s clear from the last few weeks that nothing is off the table and Republicans are vacuuming up every dollar that they can from wherever they can find it in order to pay for giant tax cuts for big corporations,” Sen. Smith said in a statement. “Working families shouldn’t have to sacrifice to pay for tax cuts for the rich. I will be fighting with everything I’ve got to prevent that from happening.”
Negotiations around child care funding “doesn’t seem to be at the top of the agenda” at the federal level, Oullette said, noting that the top priority this year will be tax-focused.
However, he said there are opportunities to discuss child care-related issues within tax negotiations.
“There could be an opportunity for some kind of adjustment to the child and dependent care tax credit and something like the flex savings account,” he said. “Other areas of opportunity for support are much smaller, but it’s in the food program. We’d like to see the USDA make adjustments that are fair for everyone, recognizing that food costs have gone up.”
‘Families need options’
Lydia Pietruszewski, director of Pine Pals, noted her optimism for Sen. Smith’s approach to the child care system is one that emphasizes collaboration and choices for families.
“I’m really glad to hear that (Sen. Smith’s) priorities are the mixed-delivery system because that’s very much something that we are supportive of,” she said. “Even though we’re a center, we fully recognize, especially in rural Minnesota, that families need options and they deserve options.”
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While future negotiations at the federal level regarding child care funding are uncertain, work is being done at the state level to increase access to the service.
The Minnesota Department of Employment and Economic Development recently awarded 25 organizations with Child Care Economic Development Grants, expected to expand child care capacity by 1,400 slots statewide. Two Bemidji-area organizations — Greater Bemidji and the Northwest Minnesota Foundation — received funding as part of $6.1 million in grants.
“It would be really hard for the state to carry all of that burden,” Oullette said, referencing the work state officials have done. “Those very promising conversations really can’t happen without federal assistance.”
Oullette expressed his gratitude to Pietruszewski and the staff at Pine Pals for providing a needed service to the community and opening the conversation about the future of federal funding for child care providers.
“Senator Smith really wants to see greater support from the federal side, greater funding and a way to alleviate the pain that families feel,” he said. “Thank you so much for seeing the need and the way that talks about cutting funding or uncertainty at the federal level impacts every aspect of child care.”
The Trust Project
