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Arkansas Pauses Child-Care Provider Cuts for 30 Days as New Co-Pays Begin

Officials cite an $80 million federal funding gap for the abrupt changes.

Overview

  • The Arkansas Department of Education announced a 30-day delay to new reimbursement rates for School Readiness Assistance providers.
  • Sliding-scale co-payments began for families with incomes above 40% of the state median.
  • Roughly 300 providers, parents and advocates rallied at the state Capitol to protest reduced payments and new co-pays.
  • Lawmakers are considering using state funds to sustain current provider payments as federal support remains uncertain.
  • Providers warn the proposed rates could force closures after less than two weeks' notice of the policy shifts.