Lawmakers urge Kehoe to honor child care funding promise

Haley Swaino

COLUMBIA, Mo. (KMIZ)

Two Springfield lawmakers are calling on Gov. Mike Kehoe to reverse a recent decision delaying a child care payment program that was promised in his 2025 State of the State Address.

In Dec. 2025, the Missouri Department of Elementary and Secondary Education’s Office of Childhood announced a pause in rolling out the new payment method.

More time is needed to make sure the system works and address overpayment concerns, according to DESE’s office. Long-term funding is also needed from the General Assembly.

Democratic state Reps. Betsy Fogle and Stephanie Hein say the Kehoe administration’s move to postpone the “pay in advance” and “authorization-based payment” programs breaks a commitment made to Missouri families and providers.

“Missouri has a child care shortage and the Governor’s decision to break his promise will make this problem worse,” Fogle said in a Tuesday news release. “We encourage the Governor to stop delaying and start delivering on his promises to our children, families, providers and economy.”

Hein echoed those concerns, noting that delayed payments have already forced many child care providers — often small business owners — to close or leave the subsidy program.

“When providers are not reimbursed fairly, families pay the price; working parents have fewer options, foster children face disruptions, and private-pay families are left to cover the cost of an underfunded system,” Hein said.

Kehoe pledged in January that starting in July, providers would receive payments at the beginning of the month based on enrollment, similar to private pay. Fiscal 2026 began July 1, but the administration announced in a Dec 19 email that the rollout would be postponed.

The delay comes as Missouri faces a severe child care shortage. A report from Childcare Aware estimates the state needs more than 19,000 additional child care spots to meet demand.

The Missouri Chamber of Commerce has called the situation a “crisis,” citing research that inadequate child care access costs the state’s economy $1.35 billion annually, including $280 million in lost tax revenue.

In 2023, 80% of CEOs surveyed by the chamber said childcare challenges keep many Missourians out of the workforce.

The 2026 legislative session begins Jan 7, and lawmakers say they plan to push for solutions.

Until the pause is lifted, DESE says providers will continue to be paid based on attendance. The Office of Childhood will share updates on its website as they become available.

The final rule for the Child Care and Development Fund was published in the Code of Federal Regulations (CFR) in April 2024, requiring states to pay in advance and on authorized enrollment.

Although Missouri received a waiver from the Administration of Children and Families until 2026 to implement this new payment practice, the Department has continued efforts to initiate these practices.

2025’s House Bill 2 allocated funds from Missouri’s Child Care Development Fund to align the payment structure for child care providers with private payors.

“The update to payment practices will provide more stability in payments to child care subsidy providers,” DESE states.

That includes payments being made in advance of services. And payments will now reflect the total amount of approved child care, as long as the child attends a minimum of eight hours per month.

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