SEIU 925 has filed a lawsuit to protect access to quality, affordable child care for our communities and provide financial stability for care providers. SEIU 925, in coalition with SEIU International Union and AFSCME and represented by Democracy Forward, are challenging a new federal rule that threatens to raise child care costs for early learning professionals and working families alike.
The Trump administration is rolling back four major child care protections in the Child Care and Development Fund (CCDF) rules adopted in 2024:
- Payments based on enrollment rather than attendance
The 2024 rule required states to pay providers based on a child’s enrollment, even when a child was temporarily absent due to illness or other reasons. The rollback allows states to return to attendance-based payments, which can reduce funding when children miss days. - Prospective payments to providers
The 2024 rule required states to pay providers in advance of services whenever possible, helping providers cover payroll, rent, and other fixed costs. The rollback removes this requirement, potentially increasing payment delays and financial instability for providers. - Investments for underserved children and communities
The 2024 rule required states to use grants or contracts to invest in child care access for infants and toddlers, children with disabilities, and families living in child care deserts. The rollback eliminates this requirement. - Caps on family child care costs
The 2024 rule required states to limit child care co-payments for low-income families to no more than 7% of household income, a benchmark widely used to define affordable child care. The rollback removes that requirement, allowing states to charge higher co-payments.
Working families rely on stable, affordable child care. Rolling back protections that help keep child care financially stable is wrong and would make it harder for child care businesses to keep their doors open. Families deserve quality, affordable care options, not policies that make child care less accessible, less affordable, and less reliable.
Read more about the lawsuit in this press release from Democracy Forward.