Charleston, W.Va. — The West Virginia Department of Human Services (DoHS) recently assured the state’s child care providers that there is no imminent “funding crisis.”
DoHS Secretary Dr. Cynthia Persily confirmed this during August’s interim meetings with the West Virginia Legislature. She stated that despite some reports, the state has sufficient funds to maintain child care subsidies through the end of the year.
“There is no immediate crisis,” Persily emphasized. “However, planning is essential, and we are actively doing so.”
The DoHS explained that the current issue relates to changes in how child care subsidies are calculated. During the COVID-19 pandemic, the federal government increased funding for subsidies based on the number of enrolled children at facilities rather than attendance. Although this extra funding ceased last year, a federal rule change in February mandated that the state continue using the enrollment-based model.
West Virginia has been covering the increased subsidies with remaining federal American Rescue Plan Act funds and Temporary Assistance for Needy Families funds. The DoHS assured that these resources will last through the year, allowing the Legislature time to address future funding needs.
Julie Kashen, a senior fellow at The Century Foundation, emphasized the importance of affordable child care for a healthy economy. “Child care should be treated like a public good, similar to K-12 education,” Kashen said. “The cost of safe, nurturing child care often exceeds what parents can afford, while its benefits to the economy and society are substantial.”
Brittany Walsh, senior associate director at the Bipartisan Policy Center’s Early Childhood Initiative, added that reliable child care is crucial for a stable workforce. “Workers need to know their children are in a safe environment while they are at work. The issue extends beyond immediate child care availability,” Walsh noted.
Kashen described the child care market as a “broken market,” where parents early in their careers struggle to afford the true cost of care. This financial strain affects the ability to pay early educators adequately, leading to high turnover and staffing shortages. She pointed out that these problems existed before the pandemic and were exacerbated by it.
In response, Congress provided substantial funding to support child care during the pandemic. States made efforts to use these funds effectively, knowing they were temporary. Some states, like Kentucky, have continued to invest in child care even after federal funds ended. Kentucky’s 2025 state budget includes $68 million for general child care assistance and proposals to ease the financial burden on child care workers.
In West Virginia, Governor Jim Justice proposed a child and dependent care tax credit in his 2024 State of the State address. The proposed credit, which was introduced in the 2024 legislative session but did not pass, would offer up to $525 for one child and up to $1,050 for two or more children, depending on expenses and income.
The West Virginia Tax and Revenue Department estimated that implementing this credit would cost the state about $4.2 million annually in lost revenue and an initial $60,000 for administrative costs.
Justice has indicated that he may include child care issues in an upcoming special legislative session. He highlighted the national problem of child care affordability and expressed frustration that the proposed tax credit was not pursued. “Families paying $600 or $700 a month for child care face significant challenges,” Justice said. “We need to address this issue.”