Proposed Federal Rule Would Roll Back Key Child Care Payment Protections

February 11, 2026 

On January 5, 2026, the U.S. Department of Health and Human Services (HHS) issued a proposed rule that would rescind several core provisions of the 2024 Child Care and Development Fund (CCDF) final rule — provisions designed to strengthen affordability for families and stabilize payments to child care providers. 

The 2024 rule addressed long-standing structural challenges in the child care sector: payment delays, attendance-based reimbursement volatility, high family co-payments, and persistent supply shortages. These challenges directly affect whether child care provider business owners can remain open and whether families can find care. 

First Children’s Finance submitted a public comment urging the Administration for Children and Families to preserve the 2024 rule. 

From our work with more than 10,000 child care provider business owners nationwide, we know this sector operates as a small business market with high fixed costs and very limited financial margin. Payment policies that increase uncertainty reduce participation in the subsidy system, weaken supply — particularly in rural communities — and ultimately limit family choice. 

The proposed rollback does not identify documented failures in the current rule. Instead, it risks reversing progress toward a more stable and affordable child care system.

Read FCF’s full public comment letter.