NC child care center owners express fear about future of federal funding

The National Head Start Association reported that many grant recipients have seen delays in accessing approved grant funding since the funding freeze was announced in the second week of the Trump administration.

March 19, 2025

Without Wanda McCargo, Wanda's Little Hands Education Center would not exist.

"We have been serving this southeast Raleigh community since 1996," McCargo said.

Wanda's Little Hands serves 85 children, offering affordable early childcare to families.

McCargo said she relies on state and federal funding to make her programs possible. She's taken advantage of many options, from Wake County Smart Start to Head Start, the federally funded, comprehensive preschool program for children aged 3 to 5 and their families.

"Being able to connect with outside agencies to provide funding and sustainability here is great,” she said. “The challenge would be if we didn't have that here."

Some Democratic lawmakers fear the Trump administration will make moves to cut some of these programs.

President Donald Trump implemented a federal funding freeze on grants and loans that have impacted programs like Head Start already.

The National Head Start Association reported that many grant recipients have seen delays in accessing approved grant funding since the funding freeze was announced in the second week of the Trump administration.

Some programs said they haven't been able to draw down the funds to pay for expenses like payroll and utilities. The freeze started last week with an Office of Management and Budget memo, which was quickly rescinded.

On Wednesday, McCargo sat down with U.S. Deborah Ross, D-North Carolina, at a roundtable discussing child care. Ross said she'd heard about the impact of that freeze, especially on programs like Head Start.

"I have heard, particularly from Head Start, that they have tremendous challenges being able to make ends meet," Ross said. "Also, through the Department of Health and Human Services that deals with early childhood centers. We've had so many centers close."

WRAL News has reported on the impact of the end of pandemic-era child care center funding on centers, with many being forced to close down in the last few years.

WRAL News spoke with parents, who say they're aware of how the federal funds help decrease the cost for child care centers.

Karen Rodriguez has two children, one of which goes to Wanda's Little Hands.

"I work a full-time job, but I would not be able to afford child care if it wasn't for these programs," she said.

For Rodriguez, it's not just about affordable childcare but also being able to find a quality option for her child, whose first language at home is Spanish.

WRAL News asked North Carolina House Speaker Destin Hall about some of the concerns regarding funding for child care.

"In this state, as in every state, child care is expensive," he said. "I don't know the government paying for these things helps alleviate the problem. It's more of a concern to have people available to work to do those things."

Hall said lawmakers are watching the federal issues closely and are open to discussing ideas on lowering child care costs and expanding access in the future.

Link to full article: https://www.wral.com/news/local/child-care-centers-federal-funding-fears-raleigh-march-2025/