State faces backlash as 5,500 Nevada kids lose child care subsidies due to funding cut

CARSON CITY, Nev. (News 4 & Fox 11) — 5,500 kids are being cut from Nevada's Child Care Development Program after COVID money ran out. The federal grant won't cover the 13,000 kids under the program anymore.

The Child Care and Development Program allows families to receive subsidies for child care if their income allows. The state says new applicants have to fall at or below 41% the state median income. Renewal applications are evaluated at 49% state median income.

Those new income levels went into effect Oct. 1, 2024. Back then, people could qualify if their income was at or below 85% of the state median income.

COVID money used for 13,000 children ran out and the numbers have to drop to the previous level. To help make budget under the federal grant meant the state had to remove about 5,500 people from the program. That's about 250 kids a week who will now be without child care assistance.

Lisa Swearingen is the Deputy Administrator with the Department of Health and Human Services, Division of Welfare and Supportive Services. She says she was once on child care assistance as a single mom with two young children under the age of three.

"I think I worked at Raley's bagging groceries and put myself through school and got hired on with the state, but I couldn't have done it without childcare assistance," Swearingen said.

She said the previous administration made the decision to spend the Covid money for more children to receive assistance.

"The money needed to be spent or it went back to the federal government and so from what I'm seeing, they just tried to get as much money out to families and providers as they could. I know that for a short period of time, we were helping providers by giving them additional money so that they didn't have to close their doors during Covid, even when they didn't have any kids coming," she said.

As News 4-Fox 11 previously reported, Heather Paley said her $1,200 paycheck every two weeks was barely enough for her family to survive. She thought her raise would help, but with only a two week notice her case manager told her she made too much and had to take away her assistance.

"It was I was very fearful because I can't afford $2,200 a month," she said.

Paley said she only had two weeks notice that her assistance would end.

After the News 4-Fox 11 story, Paley said the Children's Cabinet, who managed her account, re-evaluated her case and reinstated her assistance.

Swearingen said there's been no discussion to have a step-down program before clients are completely removed from the program.

"So no, we haven't really looked at that," she said.

A big change for the state's childcare program that could cut costs and may allow more kids to get back on assistance. Managing the cases will now be done in-house under Health and Human Services. The change will take place June 30 for southern Nevada and in 2026 for northern Nevada.