Predictors of Provider Participation in the Childcare Subsidy System: Insights From a Nationally Representative Sample

Family Child Care Program Closure in Alabama During the COVID-19 Pandemic

“…Additionally, aligned with the conceptualized factors contributing to FCC decline, subsidy participation may help with business sustainability, especially early in the pandemic when providers could receive additional financial support through the subsidy program (Bromer et al, 2021). It is also possible that providers accepting subsidies had greater administrative capacity going into the pandemic—they successfully navigated the application process and documentation needed to receive subsidy payments (Sandstrom et al, 2018; Slicker et al, 2022). Previous research with center-based programs suggests that administrative capacity is associated with subsidy participation (Giapponi Schneider et al, 2017; Slicker & Hustedt, 2022).…”

“…Given the positive relationship between subsidy participation and remaining licensed, it is essential moving forward to ensure child care subsidy is readily accessible to FCC providers who want to participate. FCC providers often face barriers to subsidy participation, including a burdensome provider approval process, low payment rates and challenging payment processes, and state policies that are not family- or provider-friendly (Adams & Dwyer, 2021; Greenberg et al, 2018; Slicker, 2022), and these barriers may have increased as a result of the 2014 Child Care Development Block Grant (CCDBG) reauthorization (Bromer et al, 2021). Adams and Dwyer (2021) offer some suggestions for state and federal policymakers to consider that may reduce these barriers, such as simplifying the provider approval process, reviewing existing policies and procedures to ensure they do not create obstacles for FCC providers, and reevaluating payment rates to ensure equity.…”

“…Research on center-based programs’ subsidy participation found that programs in states with higher reimbursement rates and payment for child absences were more likely to accept child care subsidies (Slicker, 2022). However, this research did not include FCC or extend to consider licensing and program closure as outcomes.…”