A novel nationwide study of child care policy gave Ohio positive marks for its efforts to boost payments and assistance, but still needed more work from states and federal agencies.
Child care is in what state and national advocates have described as a crisis as facilities struggle with high demand, high turnover, low wages and uneven levels of state support.
Child care advocates in the state are hoping for changes that will prevent budget shortfalls at both the federal and state levels, even looking to the priorities of gubernatorial candidates in November as a guide to the future. Earlier this year, CEO of the children’s advocacy group Groundwork Ohio, Lynanne Gutierrez, said the difference was $600 millionwith a timeline for reaching the 2028 budget cliff.
The Ohio Legislature has been trying to deal with this problem for years by passing laws that split child care costs between the state, workers and employers; through various assistance programs for low-income families; and through bills to include child care workers on the list of Ohioans eligible for financial assistance.
Recently a lots of overdue bills through the Ohio House of Representatives Committee on Children and Human Services, also including bills to reduce regulatory burdens on child care facilities used by military families and a bill to guarantee eligibility for a publicly funded child care program for foster families and family members, such as grandparents and siblings, who care for children.
Before the General Assembly decided to recess for the summer, the committee introduced another child care-related bill, this time a bill to expand enforcement options for potential child care fraud investigations, which supporters and Republican co-sponsors of the bill say will aid the state be diligent and ensure funding for centers goes where it’s needed.
Ohio State for Child Care
A study by the National Women’s Law Center found that in 2024-2025, most states in the country “improved one or more key child care assistance policies.” Ohio was one of seven states to set its income limits for eligibility at or below 150% of the federal poverty level.
State lawmakers reaffirmed the 145% cap on publicly funded child care in the state’s latest operating budget, although supporters had hoped the cap would be increased. A separate state program, the Child Care Choice Voucher program, allows people above the eligibility limit to apply for subsidies through the state up to 200% of the federal poverty line.
According to a study by the Women’s Law Center, Ohio was one of five states that reduced payment rates for providers. The payment rating system changed during the study period, moving from a star rating system for the Step Up to Quality program to a gold, silver and bronze rating system starting in July 2024.
According to the National Women’s Law Center, fee rates determine whether child care centers “have the resources to maintain salaries and benefits sufficient to attract, retain, and provide financial security for child care teachers.”
The study used Franklin County as an example of the base rates paid by the state. In this county, the monthly base rate for a four-year-old child attending child care in 2025 was $1,005, an boost of $95 from the previous year’s monthly rate. The base monthly rate paid by a provider for the care of a one-year-old child in 2025 was $1,277, an boost of $130 from the previous year.
Having a sufficient tuition rate helps lower the child-to-staff ratio, keep facilities unthreatening, and provide materials and supplies to children. Fee rates that do not meet the needs of child care centers may cause facilities to turn away families receiving assistance in favor of private payers, according to a Women’s Law Center study.
“Providers who accommodate such families may be deprived of the resources needed to provide high-quality care for children and fair compensation for child care teachers, and sometimes cannot even keep their doors open,” researchers said.
Under the latest system, if a childcare provider is in the gold tier, they receive a rate from the state that is 25% above the basic rate. A Silver level supplier receives 15% above base and a Bronze level supplier receives 10% more.
In addition to the base fee and any tiered bonuses a childcare provider may receive, most parents are required to pay a “surcharge” to the provider. The Women’s Law Center study found that in both 2024 and 2025, Ohio’s co-pay level was 7% of household income if it was 100% of the federal poverty line. If the income was 150% of the poverty line, the subsidy was 9% of household income.
“Co-financing levels matter because if they are high, they can place a significant financial burden on families or discourage families from participating in a child care assistance program,” researchers said in a recent study.
While Ohio has made progress in funding and access to child care, researchers say there is still much work to be done in the state and across the country. Time will tell what cuts to Medicaid and the Supplemental Nutrition Assistance Program (SNAP) will ultimately impact the child care sector as well, although the National Women’s Law Center is not positive.
“Many states have made their own investments in child care in recent years, but it is unclear whether states will be able to sustain these investments given budget pressures,” the center’s researchers said. “A significant commitment of federal resources is essential to creating a strong child care system that enables all children, families and early educators across the country – and our nation’s economy – to thrive.”
