Testimony of Audrey Kasselman, Senior Policy Analyst, before Office of the State Superintendent of Education (OSSE) Committee of the Whole

Good morning, Chairman Mendelson, members of the Committee of the Whole, and staff. Thank you for the opportunity to address the committee today. My name is Audrey Kasselman and I am a Ward 1 resident. I am a senior policy analyst at DC Action and with Under 3 DC, a coalition that is committed to building a racially just early childhood system that secures a strong start for every infant and toddler in the District. My testimony will focus on the urgent need for strong and sustained funding for the early childhood education system, specifically the child care subsidy program and the Pay Equity Fund. Thank you Mr. Chairman, and to all the Councilmembers who have expressed their support to protect critical early childhood education funding.

The Child Care Subsidy Program 

Background on the Child Care Subsidy Program

The child care subsidy program is a cornerstone of DC’s early childhood infrastructure. It currently helps over 7,600 children* afford child care, supports children’s healthy development, and enables parents to work or attend school. It currently serves families earning under 300% of the federal poverty level (FPL) who rely on this support to access high-quality early childhood education. Notably, more than 60% of infants and toddlers enrolled in the program in FY25 come from families with incomes between 0-50% FPL – less than $14,000 per year. Access to this program is a critical tool for preventing deeper poverty and supporting economic stability. 

Starting May 12, in less than one week, the Office of the State Superintendent of Education (OSSE) is implementing a waitlist for new families seeking a child care subsidy. In practice, the waitlist will function as an enrollment freeze, which means no new families will be able to access child care assistance for the foreseeable future. 

Without the child care subsidy program, access to high-quality early learning will be out of reach for thousands of DC families with low and moderate incomes. In a city where infant care costs more than $26,000 per year on average, a family earning 300% of the FPL ($81,960 for a family of 3 in 2026) would spend roughly one-third of their income on private-pay child care tuition. And that is at the top of the current eligibility threshold. For families earning less, child care can easily take 50-100% of annual income – an unrealistic share of a household budget.  

Furthermore, an Under 3 DC report finds that a lack of access to affordable child care leads to $252 million in lost wages for DC parents, $79 million in lost productivity and turnover costs for DC employers, and $64 million in lost tax revenue for the District. Early care and learning are economic anchors and drivers for our city. In this context, robust child care assistance remains a necessary investment even in a constrained budget. It ensures children can access high-quality early learning programs during their most critical developmental years, and parents can work or attend school while they do.

Funding for the Child Care Subsidy Program

The Council must ensure that funding for the child care subsidy program is sufficient to continue serving all currently enrolled families, allow new families to join, and maintain provider reimbursement rates. The FY27 budget includes about $114 million in total funding for the program. According to the Mayor and OSSE leadership, the $114 million budget proposal is sufficient to serve approximately 6,000 children, with a reduction in provider reimbursement rates impacting our Quality and High-Quality early learning settings. This represents a significant reduction in the number of children being served – 21% – at a time when families’ need for assistance remains high, especially as other aspects of the social safety net are being dismantled while simultaneously enforcing work requirements. 

Our analysis indicates that total programmatic funding for the child care subsidy program is woefully insufficient to meet current program needs and the needs of families it serves. The child care subsidy program needs $177.1 million  in FY27 to: 

1. Continue serving all currently enrolled families 
2. Eliminate the need for an FY27 enrollment freeze or waitlist 
   1. Allow for new families to enter the program (using DCFPI’s enrollment growth projections detailed in Appendix One at the end of my testimony)
3. Keep reimbursement rates for Quality and High-Quality providers the same 

First, the Council must invest sufficient funding to maintain access for all currently enrolled families and prevent further contraction of the program. The child care subsidy program is designed to ensure that families can access care when they need it – not months or years later. A funding level that cannot sustain the current caseload risks destabilizing families who rely on this support to work, attend school, and meet basic needs. Federal requirements further underscore this obligation, requiring the District to continue serving families already enrolled in the program. Failing to adequately fund the program to meet existing demand will not only create administrative strain but also place families at risk of losing access to care they depend on.

Second, the Council must provide funding to end the enrollment freeze and prevent the waitlist from becoming a long-term feature of the program. Implementing a waitlist effectively shuts the door on new families seeking assistance, many of whom are already navigating significant economic hardship. Child care costs in the District are prohibitively high, and without access to subsidies, families are often left with no viable options. At the same time, this policy will create the inefficient and destabilizing dynamic of empty seats in child care programs while eligible families sit on a waitlist. Many providers cannot fill those seats with private-pay tuition. As a result, programs will be forced to operate below capacity, reducing revenue and threatening their ability to keep classrooms open.

A prolonged waitlist will deepen inequities, disproportionately impacting families with low incomes and families of color, undermining the District’s broader goals of supporting workforce participation and economic mobility. Restoring funding to allow new families to enter the program is essential to ensure the subsidy system functions as intended.

Third, the Council must maintain current provider reimbursement rates to ensure the stability of the child care supply. Child development facilities rely on subsidy revenue to help cover the cost of care, including staffing, facilities, and materials. Under the proposed budget, reimbursement rates would be reduced by 2-8% (depending on program quality rating), further widening the gap between what providers are paid and the actual cost of delivering care. OSSE’s own Cost of Care analysis finds that current reimbursement rates are already 14%-45% below the true cost of providing early education in the District. At the same time, many providers operate on margins as low as 1%, leaving virtually no room to absorb additional cuts. 

Child development facilities participating in the subsidy program already participate at a significant financial loss. In this context, even modest rate reductions are not just unfair but unsustainable for keeping early education accessible to low-income families. Rate cuts mean providers will be forced to make difficult decisions, including staff reductions, cutting quality supports like specialist and early intervention services, leaving classrooms unfilled, or closing entirely. According to the Mayor’s proposal, these cuts would generate only about $6.8 million in savings – an amount that pales in comparison to the significant disruption and long-term damage they would inflict on providers, families, and the broader early learning system

As highlighted in our recent interviews with major child care providers, the combination of an enrollment freeze and rate cuts creates a particularly untenable situation. Programs lose both revenue and enrollment simultaneously, accelerating financial instability and increasing the likelihood of classroom and facility closures, ultimately reducing the availability of care for all families, regardless of subsidy status. Sustaining reimbursement rates is therefore critical to preserving the supply of high-quality early learning programs and ensuring families can access care. 

Finally, the Council must ensure that total program funding aligns with actual needs and supports a pathway for growth. Our analysis indicates that the child care subsidy program requires $177.1 million in FY27 to continue serving all currently enrolled families, eliminate the waitlist, maintain reimbursement rates, and allow new families to enter the program at levels consistent with recent years (see enrollment and cost projections chart in Appendix One at the end of my testimony). The gap between the proposed budget and the level needed to sustain the program is $63.2 million, and if unfilled, it will have real consequences for families, providers, and the broader economy. A fully funded subsidy program is not only a support for individual families – it is a critical investment in the District’s workforce, economic stability, and long-term growth.

Waitlist Management 

As the District moves forward with implementing a waitlist, it is critical that this policy is treated as a temporary measure, managed transparently, and has a clear plan for resolution. Without intentional design and oversight, the waitlist risks becoming a permanent barrier to access for families who need child care assistance most.

First, OSSE must clearly communicate how the waitlist will operate, including how families are added to the waitlist, notified of their status, and what they can expect regarding timing. Families should not be left in limbo without clear expectations or information. Transparent data reporting is also essential. OSSE should regularly publish data on the size and composition of the waitlist, including age of children, ward, income level, and length of time on the waitlist. This will allow the Council and the public to understand who is being impacted and ensure accountability for addressing disparities.

Second, coordination between OSSE and the Department of Human Services (DHS) is essential. DHS serves as the primary, public-facing agency for families, handling applications, eligibility determinations, and now waitlist management. The capacity and preparedness of front-line staff are critical to how this policy is experienced on the ground. As the lead agency for the child care subsidy program, OSSE has a responsibility to ensure DHS staff are fully trained, equipped, and supported to implement these changes effectively and with compassion for families facing increased stress and hardship on account of the waitlist. Without strong coordination, training, and clear guidance, families may fall through the cracks or face delays that further destabilize their employment and economic security. Clear protocols and consistent training must be in place to ensure eligible families are identified, supported, and able to navigate the system.

Finally, the District must articulate a clear plan and timeline to eliminate the waitlist. A waitlist without a path to resolution is simply a denial of access. The Council should require OSSE to outline what level of funding or policy change is needed to resume enrollment and how long families can expect to wait. This should include regular reporting on progress toward reopening enrollment.

For more detailed recommendations on implementation, please see Under 3 DC’s recent memo on managing the forthcoming child care subsidy waitlist (memo text is also included at the end of my testimony at Appendix Two).

While the creation of a waitlist reflects current budget constraints, it does not diminish the District’s responsibility to ensure that families can access affordable, high-quality child care when they need it. Strong waitlist management practices can mitigate some harm in the short term, but they are not a substitute for the sustained investment needed to fully fund the child care subsidy program and eliminate the waitlist altogether.

The Harm of a Waitlist: Why this Policy is Unacceptable

Even if implemented with strong management practices, the creation of a waitlist is not a neutral administrative decision. It is a policy choice with significant and well-documented consequences for families, children, providers, and the broader economy. Evidence from across the country shows that restricting access to child care subsidies causes immediate and lasting harm.

For families, a waitlist means losing the ability to work, attend school, or maintain economic stability. Recent research from Brookings Institution finds that when families cannot access child care subsidies, many experience major disruptions to employment and income, with nearly half reporting that a parent had to leave a job due to lack of child care. Families on waitlists face higher unemployment, greater financial hardship, and increased food and housing insecurity. 

For children, the impacts are equally concerning. Without access to affordable, stable, and high-quality care, children are more likely to experience inconsistent or unsafe care arrangements. Research also shows that families on waitlists report concerns about their children missing critical opportunities for early learning, socialization, and healthy development. At a stage when brain development is most rapid, disruptions in care will have lasting effects on the young children – infants, disproportionately – who are locked out of access to affordable, high-quality child care.

For child care providers, a waitlist creates instability and inefficiency in the system. As noted earlier, providers may have empty seats they cannot fill with private-pay families, while eligible families remain locked out of the subsidy program. National reporting shows that when states freeze enrollment or implement waitlists, providers lose revenue and face increased risk of classroom closures or program shutdowns. This dynamic weakens the supply of care over time, making the broader system more fragile.

For the District’s economy, the consequences are significant. When parents cannot access child care, they cannot fully participate in the workforce. Local reporting on DC’s planned waitlist warns that families may be forced to leave jobs or reduce hours, undermining workforce participation and economic productivity at a time when the city can least afford it. These impacts ripple outward – affecting employers, reducing tax revenue, and slowing economic growth.

Importantly, experiences from other states demonstrate that waitlists are not short-term fixes. They often persist and grow over time when funding does not keep pace with need. Child Care Aware of America warns that the reemergence of waitlists reflects systemic underinvestment and creates long-term barriers for families trying to access care.

In sum, a waitlist does not solve the underlying problem. It shifts the burden onto families, children, and providers who are least able to absorb it, and rations access to a fundamental support that enables parents to work and children to thrive. For these reasons, the District should not accept a waitlist as an ongoing feature of the child care subsidy program, but instead take immediate steps to fully fund the system (at $177.1 million in FY27) and restore access for all eligible families.

The Early Childhood Educator Pay Equity Fund

Background on the Pay Equity Fund

The Pay Equity Fund has provided meaningful compensation increases for more than 4,000 early childhood educators in the District. The Fund also provides free or low-cost health insurance to about 2,000 early education staff and their families through HealthCare4ChildCare. 

The Pay Equity Fund has been transformative for early educators, early learning programs, families, and the District economy. Research from Mathematica and the Urban Institute confirms what educators and providers have long known: when early educators are fairly compensated, recruitment, retention, and educator well-being improve, more educators pursue and attain credentials, the workforce grows, and the quality of early learning programs rises, leading to better outcomes for children and greater stability for families. The Pay Equity Fund delivers strong returns on District investment by reducing turnover and absenteeism, fostering a healthier and more financially secure workforce, and expanding access to child care through increased supply of high-quality early learning opportunities.

Since the Pay Equity Fund’s launch in 2022, higher pay for DC’s early educators – pay that is commensurate with their credentials  – has generated a 21% return on investment to the District, boosted the early educator workforce by 11%, and improved the quality of early learning programs, according to Mathematica researchers. Additionally, it has incentivized hundreds of educators to pursue further formal academic training in early childhood education and has raised the District’s credential compliance rate to over 90% on average across all roles. This has all been accomplished without passing on costs to parents. The Pay Equity Fund is one of the District’s most immediate-impact workforce investments and deserves the Council’s full investment to continue to meet its clearly stated workforce and early learning goals.

Under the Mayor’s FY27 budget proposal, the District would effectively dismantle the core of the Pay Equity Fund. The proposal eliminates the salary component of the program – a cut of roughly $60 million – while maintaining $12 million to continue HealthCare4ChildCare. In doing so, the proposal strips the program of its central purpose: ensuring that early educators are compensated on par with DC Public Schools teachers with similar credentials. Without the salary supplement that brings wages closer to parity, thousands of early educators would face significant pay cuts, reversing recent progress and destabilizing the workforce. This rollback would almost certainly lead to increased turnover, staffing shortages, and program instability, ultimately reducing the supply of child care and driving up costs for families. At a time when the District has made measurable progress in building a stable, qualified early childhood workforce, this proposal would undo those gains and weaken the broader early learning system.

Funding for the Pay Equity Fund

The Council must reject the Mayor’s proposal and restore full funding for the Pay Equity Fund at $94.2 million in FY27. This funding allows the Pay Equity Fund to: 

• Reverse the salary scale cuts that occurred in January 2026
• Allow for a 2% cost of living adjustment on top of previous salary levels to re-establish pay parity with DCPS wages, as the program intended
• Accommodate the workforce’s growth in the number of educators & their credentials
  • The workforce has grown 11%
  • Credential attainment among early educators continues to grow
• Sustain HealthCare4ChildCare

The proposal before the Council is a $60 million reduction that would result in significant pay cuts (between $10,000 and $25,000) for thousands of early educators. These are educators who have made career decisions, pursued credentials, and remained in the field, supported by the District’s commitment to pay parity. Rolling back that commitment now would have swift and predictable consequences: educators would leave the workforce, programs would struggle to staff classrooms, and the supply of child care would shrink.

We have seen this dynamic before. When compensation is too low or unstable, supply is insufficient to meet the needs of the District’s families. What the Pay Equity Fund has shown is that the opposite is also true. When the District invests in educators, the workforce grows, and the system expands. Since the start of the Pay Equity Fund in 2022, the early educator workforce has grown by 11%, the District has added approximately 500 licensed infant/toddler seats, and the quality of early learning programs has improved. 

Importantly, there is no “partial” version of this program that achieves its intended outcomes. Maintaining only the health insurance component does not stabilize the workforce or sustain compensation parity. It simply helps to slow the inevitable loss of educators if wages fall. To preserve the gains the District has made, the full program must be funded at a level that ensures full parity with DCPS wages because further flatlining and cutting of early salaries will push educators out of the field just the same.

At this same time last year, and the year before, I said the following in my testimony before this Committee: In no other sector, in no other situation, would a professional be promised–and awarded–a well-earned raise, only to have it taken away years later. It is devastating that we find ourselves back in this same situation, for the third year in a row, where educators have to fight for fair pay and where their hard-earned salary increases are again on the chopping block due to budget constraints. 

To that end, the Council must ensure that funding for the Pay Equity Fund is not only restored in FY27, but is also sustained in the outyears of the financial plan. Workforce stability depends on predictability. Early educators – like any professionals – cannot remain in a field where compensation is uncertain from year to year. A failure to commit to ongoing funding will undermine the very stability the program was designed to create. The educators who shape our children’s earliest years, and allow their parents to go to work and contribute to the economy, deserve compensation that reflects this value. We risk losing them to higher-paying, more stable fields if we do not protect the Pay Equity Fund. 

A Systems Approach & Why BOTH Programs Require Full Funding

The Council must take a systems-level approach to early childhood education and reject any framing that pits the child care subsidy program against the Pay Equity Fund. These are not competing priorities. They are complementary, interdependent pillars of a functioning early learning system. One supports families’ ability to access care; the other ensures a stable, qualified workforce to provide that care. Without both, the system does not work.

The child care subsidy program drives demand and access. It ensures that families can afford to enroll their children in early learning programs. But access to a subsidy is only meaningful if there are available, high-quality programs with open seats. That supply depends entirely on the early educator workforce.

The Pay Equity Fund, in turn, stabilizes and grows that workforce. It enables programs to recruit and retain qualified educators, keep classrooms open, and maintain quality. But a well-compensated workforce alone does not guarantee a functioning system if families cannot afford to enroll. Without sufficient subsidy funding, programs lose enrollment and revenue, even with staff in place.

When either side of this equation is weakened, the entire system destabilizes. Cutting subsidy funding reduces enrollment, leaving providers with empty seats and insufficient revenue. Cutting the Pay Equity Fund drives educators out of the field, forcing classrooms to close even when families are seeking care. In both cases, the result is the same: fewer available slots, reduced access, and a system that cannot meet the needs of DC families.

A subsidy waitlist combined with educator pay cuts is not just additive harm. It is compounding. Providers face declining enrollment as they lose staff, accelerate closures, and shrink supply. Families, in turn, face even greater barriers to finding care, deepening inequities, and limiting workforce participation across the city.

We cannot solve a supply problem without stabilizing the workforce that makes child care possible, and we cannot solve an affordability problem without ensuring families can actually access and pay for that care. The District has made significant progress in recent years by investing in both sides of this system. Reversing course now, by underfunding either program, will undo those gains and move the city backward.

The question before the Council is not which program to fund. It is whether the District will maintain a functioning early childhood system at all. That requires full funding for both the child care subsidy program and the Pay Equity Fund: $177.1 million for the child care subsidy program, including $24 million funded at DHS, and $94.2 million for the Pay Equity Fund, including HealthCare4ChildCare.

Thank you for the opportunity to share about the importance of fully funding the child care subsidy program and the Pay Equity Fund in FY27. I am happy to answer any questions. 

Audrey Kasselman
Senior Policy Analyst, DC Action
248-804-9337
akasselman@dckids.org 

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Appendix One: FY 25-26 Child Care Subsidy Program Enrollment and Projected Spending

Month	FY25 Enrollment	FY26 Enrollment	% Change in Enrollment	FY26 Spending
October	5,767	7,033	22.0%	$11,687,039
November	5,829	7,078	21.4%	$10,468,000
December	6,188	7,373	19.1%	$12,050,517
January	6,452	7,526	16.6%	$11,838,353
February	6,530	7,673	17.5%	$11,164,924
March	6,796	8,108	19.3% over March 2025	$12,733,845
April	6,846	8,167	19.3% over April 2025	$12,827,531
May	7,153	8,534	19.3% over May 2025	$13,402,765
June	7,426	8,448	1% decrease from May 2026	$13,268,738
July	7,358	8,364	1% decrease from June 2026	$13,136,050
August	7,766	8,280	1% decrease from July 2026	$13,004,690
September	7,213	8,197	1% decrease from August 2026	$12,874,643
			Projected total spending	$148,457,094

Source: DCFPI estimate of spending based on analysis of FY 2026 to date monthly enrollment and spending data from email sent to Anne Gunderson, “Update Childcare Subsidy Amounts/Eligibility,” April 1, 2026.  

Note: Italicized figures do not represent real data but rather projections. DCFPI assumed continued growth in enrollment through the month of May when the waitlist and enrollment freeze goes into place at a rate of 19.3%, the average growth rate for the first five months of FY 2026. Starting in June, OSSE expects a 1% monthly attrition rate as children exit the program. Projected monthly spending for June through September are calculated by taking the total enrollment for that month and multiplying it by $1,570.60, the average monthly cost per slot from FY 2025.   

Appendix Two: Under 3 DC’s Recent Memo on Managing the Forthcoming Child Care Subsidy Waitlist 

April 24, 2026

To: Leadership of the Office of the State Superintendent of Education (OSSE) and Department of Human Services (DHS)

From: Under 3 DC Coalition Policy Group

Re: Implementation Recommendations of Forthcoming Child Care Subsidy Waitlist 

Recommendations for Communication, Transparency, and Family Support

On December 18, 2025, the Under 3 DC coalition published a memo outlining guiding principles for how the District should implement a potential waitlist for the Child Care Subsidy program in a way that prioritizes transparency, coordination, and clear communication with families and providers. 

Since then, the Office of the State Superintendent of Education (OSSE) has announced that a waitlist will take effect on May 12, 2026, following approximately two months’ notice to the early learning community. OSSE also issued emergency rulemaking on March 27, 2026, to formalize policies related to the waitlist and the Child Care Subsidy program overall. This memo is in response to OSSE’s announcement of the waitlist and the March 23, 2026 Town Hall where families, providers, and advocates raised urgent questions about how the waitlist will operate and how families seeking assistance will be supported. 

This memo builds on our earlier recommendations and focuses specifically on implementation steps that can help District agencies communicate clearly with the public, support families navigating the system, and minimize disruption to children’s care. 

The creation of a waitlist is necessitated by intentional choices to significantly underfund the Child Care Subsidy program. We implore agency and Council leadership to work collaboratively to correct funding levels such that this waitlist is a truly a temporary measure. Further, while a waitlist is in place it is essential that families and providers receive consistent, transparent information from both agencies.

The following recommendations reflect feedback from child care providers, educators, and advocates across the District as the May 12 implementation date approaches. 

What we are Hearing from the Early Learning Community 

Providers, parents, and advocates report several common concerns as the District prepares to implement the waitlist: 

• Families newly seeking child care assistance (expectant parents, first-time parents, parents newly meeting financial eligibilities, etc.) are unaware that there is a waitlist or how the waitlist will work or how long they may have to wait; 
• Families newly seeking child care assistance will be unable to access the program for the foreseeable future leading to concerns that children will miss out on essential early learning opportunities and families won’t be able to work; 
• Child care providers serving primarily subsidy families will face vacancies, especially in infant classrooms, as current children age out and are unable to be replaced; 
• Families currently receiving subsidies may lose access to their affordable child care if they miss redetermination notices and may not understand how the waitlist affects renewals (families historically have not been well supported by DHS in preparing for redetermination contributing to missed deadlines); 
• Families with children currently enrolled in early learning programs (both through subsidy and private pay) will see lower quality programming due to provider vacancies, loss of revenue, and inability to plan ahead; and
• Frontline staff at agencies being ill-equipped to navigate difficult conversations with families without training, consistent messaging, or meaningful tools to help families solve their child care needs.

These concerns underscore the importance of proactive communication, coordinated agency processes, and public transparency.

Immediate Steps to Take Before the Waitlist Takes Effect

With the May 12 implementation date approaching, OSSE should take several immediate actions to help ensure families and providers are prepared: 

1. 1. Continue to publish a publicly available and regularly updated FAQ addressing common questions the agencies expect to be raised by families and providers; update regularly to reflect common on-the-ground questions agency representatives and Level II providers are receiving. 
      1. This resource should be featured prominently on OSSE’s website, DHS’s website, MyChildCare.dc.gov, DCChildCareConnections.org, and other District government sites frequented by parents. 
      2. Regularly promote FAQs on District government social media platforms.
      3. FAQ resources must be available in English and Spanish and use plain language rather than technical terminology.
   2. Clearly define priority categories, outline how priority categories will operate, and how families will be informed of their status
      1. Clearly list each priority group in plain language with real-life examples so families can easily see where they fit 
      2. Explain how priority actually works in practice – who gets served first, whether there is an order within the categories, and what happens if funding is limited 
      3. Tell families how they will find out their priority group status
      4. Clearly explain what families should do if their situation changes and how to update their information
   3. Publish family facing resources, including one-pagers and videos, on how and why to apply for the subsidy program even though a waitlist is in effect. 
      1. See examples from Arizona here and here (which provides an example of what an interactive an application dashboard should look like)

• See another example from Maryland here 

1. Launch a dashboard for families to be able to track their status on the waitlist. The dashboard should provide real-time standing on the waitlist so they can plan their lives and work around when a subsidy may potentially become available. Additional guidance below (page 6-7).  
2. Launch a public data tracker showing key information about the waitlist such as number of families who have applied to date, waitlist demographics by Ward, and other relevant data points that we detail below (page 6) that can help policymakers understand trends and the impact of the waitlist in real time. 
   1. See examples from Colorado, Texas, Indiana, and Oregon 
3. Work with DHS and child care providers to send proactive, regular communications to currently enrolled families explaining what the waitlist means for renewals, continued eligibility, and the importance of meeting redetermination deadlines. Communications should include text messaging, pre-recorded calls, and webinars, in addition to emails. 
4. Convene frontline DHS and OSSE staff, Child Care Resource and Referral (CCR&R) partners, and providers for trainings on how the waitlist works and how to best support families through the process to ensure consistency and accuracy.
5. Clearly define and publish the delineation of OSSE and DHS agency roles and responsibilities for administering the waitlist. Parents and providers need to know who to go to with which questions.  

Using the time before the waitlist goes into effect to take these steps will help reduce confusion and prevent unnecessary disruption in care for families and providers. 

Ensuring Strong Coordination Between OSSE and DHS

Because DHS plays a central role in determining family eligibility and processing applications, and OSSE administers the subsidy program, provider participation, and will make the determinations around when and how many slots will be open for priority groups, close coordination between the agencies will be essential.

Families should not face confusion about where to go for information, how the waitlist will function, or what to expect as the policy takes effect. Nor should providers receive inconsistent guidance from different agencies.

To support a clear and consistent process, OSSE and DHS should:

• Align agency messaging so families and providers receive consistent information regardless of which agency they contact.

• Develop shared guidance documents for front-line eligibility staff.
• Establish clear referral pathways between families and child care providers to ensure families can quickly enroll in care once they have received a subsidy so that no one ‘times out’ during this period.
• Provide joint trainings to DHS, OSSE, and Level II staff who will be interacting with families – for both subsidy redeterminations and first time enrollment – with a focus on customer service best practices to ensure staff are prepared to communicate clearly, helpfully, and compassionately with families. Ensure all staff know about resources such as the Child Care Resource and Referral service which can sometimes offer more hands-on support connecting families to solutions. 

Strong interagency coordination will be critical to ensuring the process is fair, transparent, and minimally disruptive.

Maintain Clear and Ongoing Communication With Families

Families currently receiving subsidies and those placed on the waitlist should receive consistent, proactive communication from agencies. Recommended practices include:

• Monthly updates to families on the waitlist confirming their status and providing information about expected timelines for receiving a subsidy. Even if there is no immediate approval timeline, it is more helpful for families to have that information than to receive no information. 

• Clear (plain-language) written explanations of eligibility categories, prioritization rules, and how families may move off the waitlist if funding becomes available.
  • If a family’s situation changes while they are on the waitlist (e.g. family becomes homeless), they will also require clear explanation of how to communicate their situation to DHS or Level II providers so that their priority grouping can be adjusted and so they know where they stand within the new category (i.e. will their initial application date determine their waitlist slot or will they be put to the end of the new grouping’s waitlist).     
• Plain-language materials communicated through multiple channels including email, text messages, phone calls, and mailed notices. 
• Clear communication about how the waitlist affects renewals, provider changes, and changes in family circumstances.

Regular communication will help reduce uncertainty, stress, and anxiety, and allow families to make informed decisions about their child care and work arrangements.

Publish Detailed Operational Guidance and an Updated Public FAQ

In addition to communication about the waitlist, families, providers, and frontline staff need clear operational guidance about how the waitlist will function in practice. During Under 3 DC’s March 23 town hall with OSSE and in conversations since then across the early learning community, families and providers raised numerous detailed questions about how the policy will work once it takes effect on May 12. At present, many of these questions remain unanswered, creating significant uncertainty for families attempting to plan for child care and employment and for providers trying to make enrollment and staffing decisions.

To support transparency and ensure consistent understanding across agencies and stakeholders, OSSE and DHS should publish comprehensive public-facing sub-regulatory guidance of how the agencies will implement waitlist protocols on a day-to-day and case-by-case basis to ensure equitable but uniform application of policies; operational questions raised by families, providers, and advocates during the March 23 town hall can help the agencies develop a more comprehensive waitlist implementation plan. A companion plain-language FAQ and implementation guide explaining the additional sub-regulatory guidance will also be necessary to develop. Key topics to be addressed include:

• How the waitlist will function for new applicants after May 12;
• How the waitlist will function for currently enrolled families who missed their redetermination deadline;   
• How applications will be reviewed and families notified of waitlist placement; 
• What communication and updates families can expect while on the waitlist; 
• How families can communicate with agencies to share any changes in their eligibility that could move them either up, down, or off the waitlist (off because no longer eligible due to a move, etc.); 
• What options or referrals will be available while they wait; 
• How providers will interact with the waitlist when they have open seats.

Providing clear written guidance as soon as possible on these questions will reduce confusion, support frontline staff in responding consistently to families, and help providers and parents make informed decisions and plans.

Improve Notification and Redetermination Systems to Prevent Disruption

Ensuring that currently enrolled families remain connected to care must be a top priority. The implementation of a waitlist is a significant change to accessing care in DC that necessitates clear communication and flexibility for enrolled families. To prevent children from losing services unnecessarily due to administrative barriers, and give families time to adjust to an abrupt change in policy, the District must implement a more robust redetermination notification system that includes:

• In addition to the one-time 60 day advanced notice outreach from DHS case workers, there should be multiple advance notice reminders to families through multiple channels, including email, text message, phone calls, and mailed notices. 
  • Follow up reminders should persist weekly until the family submits their redetermination paperwork. 
• Create a process for OSSE and or DHS to notify child care providers when one of their enrolled families is approaching their subsidy redetermination date so programs can notify families in person and help them stay enrolled.
  • Note: OSSE currently notifies Level II providers when their families are up for redetermination but all providers will require this collaboration on notifications.
• Given the significant change of a waitlist going into place for the first time in over 20 years, the agencies should establish a minimum 30-calendar day grace period for families who miss their redetermination deadline that allows them to submit documentation and maintain their subsidy without being placed onto the waitlist. 
• Provide clear instructions about what documentation is required, how to submit, and where families can receive assistance.
  • If a redetermination document is missing, incorrect, incomplete, or otherwise creating a barrier to a family’s approval, DHS representatives must be proactive in reaching out and helping to remedy the situation. Outreach should happen within 2 business days of detection of documentation errors.   
• Ensure families know the consequences of not recertifying on time with respect to the waitlist and the risk of not being able to access a subsidy for at least a year if the FY27 funding levels necessitate the waitlist to operate as an enrollment freeze instead.

OSSE should take the lead in coordinating these efforts between DHS and child care operators to ensure eligible children do not lose care due to missed notices or procedural confusion, regardless of where their redetermination points of contact or notifications come from.

Provide Transparent Public Reporting and Data

Transparency will help families, providers, policymakers, and the public understand the scope and impact of the waitlist. Once the waitlist is in effect, OSSE and DHS should publish regular public updates – at least monthly – through a public dashboard or portal. At a minimum, this reporting should include:

• The number of families and number of children currently on the waitlist;
• Demographic (age of child, race, income level of family, etc.) and Ward-level breakdowns of families on the waitlist;
• Priority-level breakdowns of families and children on the waitlist;
• Average wait times for subsidy application approvals, time spent on waitlist, time from application approval to actual receipt of a subsidy, and other relevant trends over time, broken out by priority level;
• The monthly or quarterly average number of children moving from the waitlist and into the subsidy program by priority level; 
  • The number of families moving off the waitlist due to changes in circumstance or eligibility, such as families moving out of the District, child aging out of need for child care, finding different care arrangements, significant changes in family income or employment, or other reasons; 
• The number of families who applied to the subsidy program through Level II providers compared to through DHS or the online portal; and
• Monthly or quarterly closures of early education classrooms, facilities (individual sites of a larger provider network), and providers; lists should specify whether the facility/provider participated in the subsidy program;
  • Separately, if child care operators are withdrawing from the subsidy program, reporting on this potential trend would be helpful, too.    

Create a Family Waitlist Status Portal

To provide families with greater visibility into the process, OSSE and DHS should establish a secure online portal, or build upon the currently available online application portal, where families log in to apply, upload forms, and view their individual status on the waitlist, including:

• Confirmation of their placement on the waitlist;

• Their priority category;
• Where they fall in the queue within their priority group; and
• An estimated timeline for receipt of a subsidy, if available

Providing families with clear visibility into their status will reduce uncertainty and allow them to make informed decisions about work and child care arrangements. Until such a portal is available, OSSE and DHS should commit to offering monthly individualized updates to families – provided in writing via email, or mail if preferred by the family – regarding their place on the waitlist and anticipated wait times. The agencies should retain copies of these communications. 

Improve Existing Child Care Finding Tools

Many subsidy-participating families currently struggle to understand their child care options and to locate a program that meets their needs. A waitlist will only exacerbate these challenges, by adding another layer of uncertainty about whether and when they can access care, making it even harder for families to plan for work, school, and their children’s stability. With the waitlist in effect, it will be especially important to:

• Widely publicize available child care finding resources including My Child Care DC and Child Care Connections (neither website currently mention that a waitlist is going into effect May 12 and this should be remedied immediately)
• Partner with child care providers to ensure that vacancies on My Child Care DC are reported accurately and updated regularly; 
• Ensure staff of Child Care Connections have up-to-date materials and training so they can accurately support families navigating the waitlist; and
• Ensure information is easy to find, easy to understand, and translated to comply with the District’s Language Access Laws.

In closing, the implementation of a subsidy waitlist represents a significant shift for the District’s early childhood system and for District families already under financial strains as the District’s social safety net is quickly fraying beneath them. Careful coordination between OSSE and DHS will be critical to ensuring that the process is clear, fair, transparent, and as minimally disruptive as possible for families and providers who rely on this program.

The Under 3 DC coalition will continue monitoring implementation and sharing feedback from families, providers, and educators as the policy takes effect. We remain committed to working collaboratively with District agencies to support families, strengthen the child care sector, and ensure that eligible children have access to stable, affordable care.

Sincerely, 

The Under 3 DC Coalition Policy Group