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Delayed Federal Payment Threatens to Upend Missouri’s Childcare System

More than half of Missouri's 1,700 child care providers face delays in federal subsidy payments totaling $25.7 million, risking payroll and operational stability, officials said.

  • State officials say December invoices remain unpaid after the federal request; Missouri child care providers are owed $25.7 million, though DESE-OOC submitted documentation Friday, January 9.
  • Following federal fraud concerns, U.S. Department of Health and Human Services required states to justify child-care expenses, and U.S. Health and Human Services Deputy Secretary Jim O'Neill said funds release depends on proven legitimacy.
  • Missouri providers report operating on thin budgets and delayed reimbursements force some, including Rising Sun Learning Center and Each One Teach One Learning Center , to seek loans or defer bills to meet payroll.
  • If payments don't arrive soon, providers warn Missouri child care centers at risk of closure or service reductions, affecting families relying on subsidies including low-income and foster families.
  • DESE told providers payments are delayed due to holidays/maintenance; Commissioner Karla Eslinger assured `Our priority is to ensure Missouri families and children continue to have access to safe and quality child care`.
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Missouri waiting on $25.7 million payment from feds to reimburse child care providers

KTVO.com provides news, sports and weather coverage and serves the area around Kirksville, Missouri and Ottumwa, Iowa, including Greentop, Lancaster, Downing, Memphis, Rutledge, Baring, Edina, Novelty, La Plata, Atlanta, Macon, Elmer, New Boston, Browning, Milan, Green City, Novinger, Pollock and Unionville, Missouri and Bloomfield, Floris, Eldon, Moulton, Blakesburg, Moravia, Eddyville, Oskaloosa, Ollie, Sigourney, Burlington and What Cheer, Io…

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Webster County Citizen broke the news in on Friday, January 9, 2026.
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