Ohio Child Care Providers Face Pay Delays Due to Federal Funding Snag
AKRON, Ohio — Nearly 2,000 child care workers across Ohio were left waiting for their paychecks in March after a federal funding delay disrupted payments from the state’s Department of Children and Youth (DCY). For small business owners like Pershawna Garrett, the delay created a ripple effect, forcing her to dip into emergency funds and leaving employees scrambling to cover bills.
Garrett, who runs ABC Kids Academy Childcare in Akron, said two scheduled payments—one due March 20 and another on March 27—arrived late, with providers finally receiving full payment on March 31. The delay put her in a tough spot as she struggled to pay her three employees on time.
“I was upset because my staff depends on me, and I depend on these payments,” Garrett said. “If I can’t pay them, I worry they won’t come back.”
Federal Funding Bottleneck Blamed
The Ohio DCY, established in 2023 under House Bill 33, oversees programs supporting children from birth through age 21, including financial assistance for more than 5,200 child care facilities statewide. About 116,000 children rely on these publicly funded services.
According to the department, the payment delay stemmed from a holdup at the federal level. The DCY relies on funding from the U.S. Department of Health and Human Services’ Administration for Children and Families (ACF). A request for funds submitted on March 15 wasn’t approved within the usual timeframe, pushing payments past the state’s typical 10-day processing window.
In a statement, the DCY said it worked to resolve the issue quickly and ensured providers were paid in full. The agency emphasized its commitment to avoiding future delays but acknowledged the strain it placed on child care businesses.
Employees Forced to Make Tough Choices
For Eryca Garrett (no relation to Pershawna), an employee at ABC Kids Academy, the missed paycheck was a first in her six years at the center. She had to tap into her emergency savings to cover rent and utilities.
“I was devastated—I need my pay to survive,” she said. “If this happens again, I’ll have to find a second job.”
The delay also came amid changes to Ohio’s child care program, which recently adjusted part-time hours from 7–24 to 10–32 per week and full-time from 25+ to 33+ hours. Pershawna Garrett said the shift has squeezed her budget, making reliable payments even more critical.
Providers Seek Financial Stability
To guard against future disruptions, Garrett is now enrolling more private-pay families—those who don’t qualify for state assistance—to diversify her income. Still, she worries about the broader impact on Ohio’s child care system.
“Most weeks, we get paid on time, but when there’s a delay, there’s no clear explanation,” she said. “Holidays or processing issues shouldn’t leave us guessing when we’ll get paid.”
With child care workers already facing low wages and high turnover, advocates say payment delays could worsen staffing shortages. Providers are urging state and federal officials to streamline funding processes to prevent similar issues.
For now, Garrett and her employees are relieved the payments finally came through—but the experience has left them wary of the next pay cycle.
— Reported by Nexio News
