ATLANTA — Time is running out on pandemic-era federal money that thousands of child care centers across Georgia and other states have come to rely on.
And that could be a big problem for some parents.
Without those federal dollars, some child care centers could shorten hours or even close at the end of September. More than $2 billion in COVID relief funding was allocated to Georgia, with $1.1 billion of that allocated to roughly 3,000 licensed child care centers to help stabilize the industry through the pandemic under a program called STABLE 4ward.
Of that, $788 million has already been dispersed, and the rest will be gone by the end of September. Rian Ringsrud, the deputy commissioner at the Georgia Department of Early Care and Learning, said any time there’s this much public money distributed into private companies, there will be hardship when it ends.
"As much as we designed the program to be one time in nature, as much as we tried communicate it’s one time in nature, there is still gonna be a cliff out there when this money runs out," he said.
Sharon Foster, who has run the Bells Ferry Learning Centers for years, called it "a scary thought."
She said the federal COVID relief money through the STABLE grant was a great boost for her workers and families. While she’s sad it’s ending in September, she noted other centers have it much worse.
"They’ll have to close or reduce wages which will cause them to lose staff," she said.
According to The New York Times, $24 billion for child care was allocated around the country. The expiration of the funds, according to The Times report, is a "looming crisis for the industry."
Advocates from the organization Campaign for a Family Friendly Economy project Georgia could see more than 900 child care programs close entirely when the funding runs out, affecting more than 81,000 children.
Some activists are pushing for Congress to act to keep the funding in place, hoping something can pass before the September 30 deadline.
"Parents and care center owners alike are worried about what happens when the pandemic-era funding begins to expire at the end of September. One thing is clear, none of the options are desirable and Georgia families need and deserve to have lawmakers prioritize the child care sector," said Keauna Gregory, Georgia's state director for Campaign for a Family Friendly Economy.
Ringsrud said it’s important to note that while the payments to child care centers from Georgia end in September, centers don't have to use that money until July 30 of next year.
"There’s some time to plan ahead," he said. "If you use it to pay an extra staff person or give a person a raise once that money runs out, you are gonna have to figure out what you’re gonna do “
He said he would advise child care operators to "utilize that entire nine-month ramp-down period and spread your spending out so you’re not falling off a cliff as soon as you’re done spending."