BILLINGS - Montana families and childcare providers are facing new uncertainty after the Trump administration temporarily froze federal childcare payments to all states — a move that could put roughly $14 million in funding for Montana at risk.
The pause comes as childcare programs nationwide face increased scrutiny, including high-profile investigations in Minnesota.
While Montana officials say the state has strong safeguards in place, the funding delay has parents worried about rising costs and providers unsure whether the payments they rely on will arrive.
Andrea Lutz reports - watch the video here:
At Little Seeds Early Childhood Learning Center in downtown Billings, the day often begins with laughter and play as children settle in.
“We just love them every day,” said Shelby Scharen, director of Little Seeds. “We make sure that they go home every day with a happy story to tell their parents.”
Roughly 60 families rely on the center for care — and for many, childcare is essential to staying in the workforce.
“It’s extremely important, it’s very vital,” Scharen said. “If there’s no childcare then there’s no work for other people, there’s no work for us and parents can’t do their jobs.”
Affordability remains one of the biggest challenges for families across Montana. Childcare is often one of the largest monthly expenses, frequently costing more than $1,000 a month for a single infant.
“That’s why many families rely on assistance to make it work,” Scharen said. “Those families are surviving on one paycheck because a whole other paycheck has to go to putting their kids in daycare.”
Many of those families receive help through Best Beginnings, a program that uses state and federal funding to provide scholarships for low-income families while reimbursing childcare centers.
“One of our last checks was over ten thousand dollars — it’s a good portion of money,” Scharen said.
With federal payments now paused nationwide, childcare centers across Montana are closely watching the calendar to see whether those reimbursements arrive next month.
“That would be pretty catastrophic,” Scharen said.
Kim Stull with Family Connections Montana said the pause has created anxiety for organizations that help connect families and providers with funding and resources.
“We’re hoping that this gets resolved quickly so there is no interruption,” Stull said.
Stull emphasized that Montana already goes beyond federal requirements to protect the integrity of the program, requiring proof of family need and detailed attendance records.
“Providers are required to keep attendance and that can be pulled at any time that the child attended the childcare facility,” she said.
Back at Little Seeds, Scharen said the uncertainty adds to the already heavy load families and providers carry every day.
“It would be detrimental; it would be detrimental to those families on Best Beginnings,” she said.
Despite the uncertainty, Scharen said her focus remains on the children and families she serves.
“These kids are everything — they are our future,” she said. “It’s sad. Why would you pause funding for childcare, when they’re the ones who need it most?”
