The Trump administration’s funding-freeze frenzy has left thousands of low-income families at risk of losing their childcare.
Several programs that rely on funding from Head Start, a federally-funded childcare and education program for low-income families, aren’t receiving the funds they need to operate following the Office of Management and Budget’s order to freeze federal grants and funds. These programs now face closures and, without them, thousands of working parents could be forced to cut back on work or exit the workforce to care for children.
On thin ice. At least 51 childcare programs that rely on Head Start grants have experienced funding delays, Tommy Sheridan, deputy director at The National Head Start Association (NHSA), a nonprofit and central organization for Head Start programs, told HR Brew via email. He said the NHSA is currently aware of two grant recipients that have had to temporarily shut down operations, though one reopened on Feb. 5. One of these recipients, based in Waukesha, Wisconsin, serves more than 250 families. The delays could impact nearly 20,000 children under age five enrolled in these programs, their families, and roughly 6,000 employees.
Head Start funding totaled more than $12 billion for fiscal year 2024, and more than 800,000 children are enrolled in its programs.
The association had previously stated that Head Start was not supposed to be affected by the federal grant and loan freeze. A federal judge in Washington D.C. issued a restraining order on Monday intended to block it from going into effect.
“While it remains unclear why this delay is happening, it must be resolved immediately or thousands of families and their children will be at risk of losing the critical early care and educational services they depend on to work, go to school, and develop,” Yasmina Vinci, NHSA’s executive director, said in a press release.
An anonymous senior administration official told HuffPost that the delay was a result of a “technical glitch.”
That said, eliminating Head Start programs is a goal of Project 2025, a “wish list” intended to restructure the federal government with right-wing policies. Russell Vought, co-author of the 900-page playbook, is Trump’s pick to lead the Office of Management and Budget—the federal office responsible for enacting the funding freeze. He also played a key role in enacting the funding freeze, Politico reported.
Quick-to-read HR news & insights
From recruiting and retention to company culture and the latest in HR tech, HR Brew delivers up-to-date industry news and tips to help HR pros stay nimble in today’s fast-changing business environment.
“We remain optimistic that this is just a short-term technical issue and should not lead to programs closing down,” Sheridan said. “Should that change, then we would hope to engage employers to encourage them to reach out to Congress to express their fears and the realities facing them.”
Zoom out. The closure of thousands of Head Start programs could exacerbate the childcare shortage in the US and have a disastrous impact on low-income families. Affordable or on-site childcare is already out of reach for many workers: Just 9% of employers with 500 or more employees offered on-site childcare in 2024, while 16% offered some kind of subsidy, Mercer’s Survey on Health and Benefit Strategies for 2025 found. Parents report spending as many as two months finding appropriate childcare, according to a Care.com survey.
As childcare costs have skyrocketed in recent years—even becoming more expensive than rent or mortgage payments—a further lack of affordable childcare could force low-income parents to take on part-time work or leave the workforce altogether.
A Department of Commerce analysis found that households earning less than $75,000 annually were more likely to reduce working hours to care for children, whereas those earning more were likely to pay for childcare. Those who worked less to accommodate childcare were also more likely to have worse financial situations, including being less likely to cover an unexpected $400 expense with cash or report saving money in the previous month.
“Because programs are trying to do everything they can to avoid closures, it has not become a substantial issue with employers yet...though that is something we are monitoring and we know employers would not be pleased with this,” Sheridan said.