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A Blog by Action for Children

What the October 2025 Government Shutdown Means for Child Care Professionals and Families 

10/01/25

As of 12:01 AM on October 1, 2025, the federal government has officially shut down after Congress failed to pass a budget or continuing resolution to fund operations into the new fiscal year. While this situation is stressful for many Americans, it has specific implications for those working in child care, early education nonprofits, and the families they serve. 

We know that government shutdowns raise immediate concerns about how child care programs will operate — especially when so many families rely on state and federal subsidies to afford care. Although the full impact will depend on how long the shutdown lasts, here’s what we know right now: 

Not All Federal Child Care Funding Stops During a Shutdown 

Fortunately, many of the largest funding streams that support child care are structured in ways that protect them from shutdown disruptions, at least in the short term. 

  • The Child Care and Development Block Grant (CCDBG), which authorizes the broader Child Care and Development Fund (CCDF), is forward-funded. That means funds for fiscal year 2025 were appropriated last year, so most states already have this money in place and can continue using it for child care assistance during the shutdown.  

That’s reassuring news for many professionals who depend on these payments to stay open and staffed. 

Programs Like PFCC and Other Contract Models Face Uncertainty 

On the other hand, programs that rely on more recent or discretionary funding sources may face more difficulty. 

  • Publicly Funded Child Care Contracts (PFCC) and similar payment models that depend on state-federal partnerships may experience delays if states are unable to front federal payments during the shutdown period. 

This uncertainty can make planning difficult for Headstart programs and PFCC providers, especially those serving low-income families or rural areas. 

What Child Care Professionals and Advocates Can Do 

While this shutdown won’t bring child care programs to an immediate halt, it does highlight how fragile the sector can become when funding is uncertain. 

To support child care during this time, here are a few steps to consider: 

  • Document any delays or impacts you experience due to the shutdown — these examples are critical for advocacy efforts. If you run a licensed child care program in central Ohio, we’d love to hear from you so that we can help advocate. Let us know what you’re experiencing by emailing info@actionforchildren.org. 

Moving Forward 

We recognize that shutdowns are deeply unsettling for federal workers, for parents, and for child care professionals trying to keep doors open and staff paid. The good news is that core child care funding remains relatively stable for now. But the longer this shutdown drags on, the more vulnerable programs — especially smaller nonprofits and home-based care professionals — may become. 

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