GREEN COUNTRY, Okla. — Childcare providers are sounding the alarm – concerned about subsidy changes they say will impact their bottom line and potentially Oklahoma’s workforce.
“The house is on fire when we’re talking about childcare in Oklahoma,” said Cindy Alonso. Alonso is the managing member of Happy Campers Academy. She says upcoming changes to subsidies from Oklahoma Human Services are very concerning.
“Our communities are going to be affected in our industry does not stay healthy,” said Alonso.
OKDHS says:
“On April 6, 2026, the pandemic-era $5 per day add-on will end for all recipients. This temporary enhancement was funded through time-limited federal pandemic resources that are no longer available. Sharing this update now is meant to give families and providers time to plan ahead.”
Julie Roth, owner of Leaps and Bounds Childcare in Sapulpa, says operating costs have increased significantly since the pandemic.
“Taking the $5 away is really taking us back to those times,” said Julie Roth. “Energy costs have gone up. Groceries have been through the roof. Payroll. Taxes.”
OKDHS says:
“On July 1, 2026, income eligibility will return to 55% of State Median Income, consistent with pre-pandemic guidelines and federal Child Care and Development Fund (CCDF) priorities.”
Janell Wheat, board member with the Licensed Childcare Association, says their current income eligibility rate is 85% of the State Median Income. She’s concerned about the change.
“To go from 85 to 55 obviously is catastrophic,” said Janell Wheat. “I can’t forecast and our membership can’t forecast what does that July look like and unfortunately I don’t think that many will be around in July because of all the other cuts that are happening,” said Wheat.
The Licensed Childcare Association reports that 427 Oklahoma Childcare businesses have closed since November 3, 2025.
“Childcare is the backbone of the workforce in every state in our country,” said Alonso. “It’s especially true in Oklahoma. If childcare providers close down, people are not going to be able to go to work.”
Roth says that with more than 90% of her business relying on subsidized students, she’s worried for the future.
“It’s going to have a huge impact,” said Roth.
OKDHS says
“These updates are part of a coordinated stabilization plan designed to allow for expanding access where funding permits, sharing changes early so families and providers can plan, and protecting the program for the long term.”
The Licensed Childcare Association of Oklahoma says they want a seat at the table so their industry can sustain.
“Providers didn’t create the problem,” said Wheat. “We’re happy to be a part of the solution.”
It’s also important to note that a previously announced pause to renewals and new applications for children ages 6-8 was restored on Jan 12.
OKDHS says:
“At this time, the pause on renewals and new applications remains in place for children ages 9–12, with exceptions for children in foster care, placed for adoption, with disabilities, experiencing homelessness, or whose families are receiving emergency financial assistance through Temporary Assistance for Needy Families (TANF).”
2 News asked OKDHS about the changes and their response to providers' concerns. Here are those questions and the responses from OKDHS:
Why are the changes (specifically removing the $5/child add-on and the switch to 55% of median income) necessary?
The $5 per-child add-on and expanded income eligibility were funded with temporary federal pandemic dollars that have expired. The agency does not generate revenue independently and must operate within available state and federal funding. These updates are part of a coordinated stabilization approach focused on sharing changes early so families and providers can plan, expanding access when funding allows, and protecting the child care subsidy program over the long term.
Providers I spoke to are concerned these changes will impact the ability of centers to stay open. What’s DHS’ response?
Oklahoma Human Services remains committed to supporting families and providers by strengthening access to child care while responsibly managing the program for the future. Our goal is a more stable, predictable program that families and providers can rely on today and in the years ahead.
Are these changes ($5/child add-on removal and switch to 55%) definitive or are they still being debated?
The dates for these changes have been set. On April 6, 2026, the pandemic-era $5 per day add-on will end for all recipients. This temporary enhancement was funded through time-limited federal pandemic resources that are no longer available. On July 1, 2026, income eligibility will return to 55% of State Median Income, consistent with pre-pandemic guidelines and federal Child Care and Development Fund (CCDF) priorities.
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