The mission of the Child Care division of Oklahoma Human Services is to assure Oklahoma families have access to licensed, affordable, high-quality child care where children have the opportunity to develop their fullest potential in a safe, healthy and nurturing environment. However, continuing the pandemic-era level of spending is unsustainable without significant impacts to other vital services that Oklahomans depend on every day. We have a fiscal responsibility to taxpayers to maximize both the federal and state dollars entrusted to our agency. While we explore modifications to child care subsidy and the Quality Rating and Improvement System (QRIS or Stars), we will work to ensure minimal disruption to our Human Services partners and clients and find the best path forward for Oklahoma

Child care subsidy is available through the federal Child Care and Development Block Grant (CCDBG). It helps parents who meet income requirements pay for licensed child care while they are at work, in training or getting an education. Subsidy payments are paid directly to a participating child care provider on the family’s behalf. Families may have a copayment for the child care services they receive based on their income, the number of family members and the number of family members needing child care. Families are responsible for submitting their copayments directly to their child care provider. Child care providers are private business owners, and they may choose whether or not to accept subsidy payments based upon their own business plans.

Child care licensing is authorized by the Oklahoma Child Care Facilities Licensing Act (10 O.S., § 401-410), enacted in 1963. As part of this responsibility, Oklahoma Human Services works with child care providers and other industry experts to develop health and safety requirements for child care programs, revise existing requirements, and implement policies and procedures for the licensing program. The foundation of quality child care is a strong licensing program that works to ensure children’s health, safety and wellbeing when they are away from their own homes.

The Stars program (also known as QRIS) was designed and updated with practice and evidence-based quality criteria to:

1. increase the education and competency levels of child care providers.
2.  increase access to quality child care for children receiving subsidized care.
3. provide a system for parents to evaluate the quality of child care services.

a.     Over the past two years, Oklahoma Human Services has seen a 20% increase in the number of children receiving child care subsidy. On average, child care subsidy for one child attending full time child care is $9,816 per year. Given current child care subsidy participation numbers, the yearly estimated fiscal impact is roughly $68.7 million.

In 2022, when the Quality Rating and Improvement System (QRIS or Stars program) was relaunched, nearly 65% of children receiving subsidy were attending 2-Star child care programs. In 2024, however, more than 66% of children receiving subsidy are attending 5-Star child care programs. Child care providers accepting subsidy payments are paid based upon their Stars rating,  the child’s age, and level of care. Children in foster care and those with special needs are paid at even higher rates.

These factors, combined with pandemic-related child care investments, have led to Oklahoma Human Services allocating the highest amount of budget to child care in state history. While child care is vitally important to Oklahoma, this pandemic-era level of spending is unsustainable without impacting other vital services.

Oklahoma Human Services is committed to working with stakeholders to find the best solutions for child care in the state. The agency will offer opportunities for child care providers, partners, and others to collaborate on potential changes to the Stars program and subsidy eligibility rules. Written comments may be sent via email to CHILDCARE.OCCS@okdhs.org.

The agency is looking at numerous options to adjust the child care funding structure, including updating the Quality Rating and Improvement System (QRIS or Stars program) to better align child care providers' Stars levels with licensing requirements and potentially adjusting the eligibility criteria for the state’s child care subsidy program.

Oklahoma Human Services proposed rule changes earlier this summer, but decided on Sept. 25, 2024 to withdraw these to allow more time for input from stakeholders to work toward a sustainable budget.

Industry input on any policy changes are necessary to achieve the best outcome for the future of child care in Oklahoma. The agency will offer opportunities for child care providers, partners, and others to collaborate on potential changes to the Stars program and subsidy eligibility rules. Written comments may be sent via email to CHILDCARE.OCCS@okdhs.org.

Oklahoma Human Services encourages stakeholders to submit ideas and create solutions that support child care while maintaining a sustainable budget. Providers and families may send their ideas and feedback to CHILDCARE.OCCS@okdhs.org.

Time-limited federal funding allowed Oklahoma Human Services to provide targeted investments of nearly $1.4 billion into our state’s childcare industry since 2020. These investments have included:

• More than $968 million in child care subsidy payments
• More than $383 million in child care stabilization payments
• Nearly $70 million in child care desert grants

This federal funding during the public health emergency helped Oklahoma Human Services meet the critical need for affordable and available child care and ultimately resulted in 380 new child care facilities and an increased child care capacity of more than 13,000 children across the state.

Pandemic-related initiatives were always time-limited, and funding for these initiatives had to be fully expended by Sept. 30.