Maine child care providers to receive $73M in federal funding

Courtesy / CEI Rayitos de Sol, a child care business in Milbridge, opened in 2021 with support from Brunswick-based Coastal Enterprises Inc.

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By Jessica Hall

The state will distribute $73 million in federal funds to Maine child care facilities to help them boost pay for staff and cover costs related to the pandemic.

The Maine Department of Health and Human Services will distribute the funds from the American Rescue Plan Act, which was passed by Congress in March to help businesses and individuals hurt by the COVID-19 pandemic. The child care stabilization grants aim to help an industry struggling with lost revenues, closures or reduced capacity.

Providers that receive grants must use a portion of the funds to pay bonuses of $200 per month to staff who directly care for children, and additional funds can be used to pay for expenses including rent and utilities, reducing fees for families, loss of revenue, personal protective equipment and testing, and mental health services for children and employees.

“Maine’s child care providers have been crucial to providing a safe place for kids to learn and grow while allowing their parents to go to work and contribute to our economic recovery,” said Gov. Janet Mills in a news release Monday.

Grant amounts will vary based on capacity and staffing, and additional funds will be available to programs that meet higher state quality standards, participate in the child care subsidy program, and offer extended hours to meet the needs of parents with nontraditional work schedules.

“Access to affordable, high-quality child care is one of the most important ways we can support Maine’s working families during and after the pandemic,” said DHHS Commissioner Jeanne Lambrew. “These grants will give providers resources they need as part of our broader plan to chart a sustainable recovery and brighter future for Maine’s child care system.”

The deadline for child care providers to apply for the current round of grant funding is Sept. 30. So far, 951 of Maine’s providers, or 58%, have applied for these grants. As of this month, 97% of licensed programs are open and operating, the state said.

The child care stabilization grant program is the latest round of funding the state has made available for child care providers. Funding has also included $175 million for system improvements to support families and providers outlined in the DHHS Child Care Plan for Maine, as well as $10 million in capital funds for child care facilities and early childhood workforce development and training through the Maine Jobs and Recovery Plan.

The $73 million allocated for the Child Care Stabilization Grant Program also follows $14 million in direct support payments to Maine’s child care providers since March 2020.

Maine is the only state in the nation that covers at least 75% of child care slots through its subsidy program, meeting the federally recommended standard, according to a 2020 report from the Prenatal-to-3 Impact Center.