SOUTH FULTON, Ga. — Families and daycare providers across Georgia are raising concerns after the Trump administration announced changes to federal child care funding, leaving many uncertain about how and when the new requirements could affect payments.
Some providers say they learned about the changes through an email from the federal government earlier this week.
While funding has not been cut off in Georgia, advocates say the lack of clear guidance has created anxiety for an industry already operating on thin margins.
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The U.S. Department of Health and Human Services announced new nationwide payment requirements after federal childcare funds were frozen in Minnesota amid allegations of fraud.
Under the new rules, states must demonstrate that funds are being spent appropriately before federal dollars are released.
Federal officials say the policy applies to all 50 states, including Georgia.
Sydney Busby, owner of Sydney’s Pampered Peach Daycare in South Fulton, said the announcement raised concerns about potential delays. Her family has operated the daycare on Derrick Road for 30 years.
“My mom named it after me,” Busby said. “So it’s a lot for me to continue that legacy and continue to provide a safe space.”
Busby said her business survived the COVID-19 pandemic and previous federal funding changes, and she remains hopeful they can weather this uncertainty as well.
“At the end of the day, we will be fine,” she said. “It’s not going to stop us. We’ve made it through COVID.”
Education consultant Tiffaney Tulluis Johnson said news of the funding changes was alarming, particularly for smaller providers that rely heavily on federal assistance.
The federal government says it will now release childcare funds only after states meet new documentation and oversight requirements.
Providers worry that added steps in the process could slow payments.
“When providers don’t get or are unable to draw down the funds they rely on — things like the CAPS program or Head Start — it creates challenges and insecurity in the marketplace,” Johnson said.
Mindy Binderman, executive director of the Georgia Early Education Alliance for Ready Students, said federal childcare funding is essential to keeping daycares open and staffed.
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She said the money supports payroll, nutrition programs and educational materials.
“Childcare is essential to Georgia’s economy,” Binderman said.
While Minnesota’s funding remains frozen, Binderman said Georgia continues to receive payments for now. However, she said the federal government has not provided a timeline for when the new requirements could begin affecting states.
“Currently, child care is still being paid for CAPS recipients,” she said. “We really don’t know what will happen.”
State officials say federal child care funding is still distributed weekly in Georgia and that they are monitoring developments and awaiting further guidance from federal agencies.
Advocates warn that prolonged uncertainty could strain providers and families if delays or disruptions occur.
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