Haley Swaino
COLUMBIA, Mo. (KMIZ)
Two Springfield lawmakers are calling on Gov. Mike Kehoe to reverse a recent decision delaying a child care payment program that was promised in his 2025 State of the State Address.
Kehoe pledged in January that starting in July, providers would receive payments at the beginning of the month based on enrollment, similar to private pay. Fiscal 2026 began July 1, but the administration announced in a Dec 19 email that the rollout would be postponed.
In Dec. 2025, the Missouri Department of Elementary and Secondary Education’s Office of Childhood announced more time is needed to make sure the system works and address overpayment concerns. Long-term funding is also needed from the General Assembly, according to DESE’s office.
“We are six months into the fiscal year and changes haven’t occurred and that’s frustrating,” Representative Stephenie Hein said. “But that’s what the department felt like they needed to do to be able to get their ducks in a row, test the system to make the changes so that providers wouldn’t have any lapse in payment.”
Democratic state Reps. Betsy Fogle and Hein say the Kehoe administration’s move to postpone the “pay in advance” and “authorization-based payment” programs breaks a commitment made to Missouri families and providers.
The delay comes as Missouri faces a severe child care shortage. A report from Childcare Aware estimates the state needs more than 19,000 additional child care spots to meet demand.
“Missouri has a child care shortage and the Governor’s decision to break his promise will make this problem worse,” Fogle said in a Tuesday news release. “We encourage the Governor to stop delaying and start delivering on his promises to our children, families, providers and economy.”
Hein echoed those concerns, noting that delayed payments have already forced many child care providers — often small business owners — to close or leave the subsidy program.
She said it is a big difference to receive compensation based on enrollment rather than attendance.
“Because if you think about it, if a kid was sick, you still have to make sure that you are paying your teachers. You have to make sure that you are keeping the lights on for the establishment. Your overhead doesn’t change if a child is sick,” Hein said. “So that’s why having that enrollment based off of attendance is so important for those child care businesses.”
She said the cost can also fall back families.
“When providers are not reimbursed fairly, families pay the price; working parents have fewer options, foster children face disruptions, and private-pay families are left to cover the cost of an underfunded system,” Hein said.
The Missouri Chamber of Commerce has called the situation a “crisis,” citing research that inadequate child care access costs the state’s economy $1.35 billion annually, including $280 million in lost tax revenue.
In 2023, 80% of CEOs surveyed by the chamber said childcare challenges keep many Missourians out of the workforce.
The 2026 legislative session begins Jan 7, and lawmakers say they plan to push for solutions.
Until the pause is lifted, DESE says providers will continue to be paid based on attendance. The Office of Childhood will share updates on its website as they become available.
The governor’s office says Kehoe is committed to “implementing prospective pay based on enrollment for child care providers” in Fiscal 2026.
“A change of this magnitude requires much effort, and the Department of Elementary and Secondary Education Office of Childhood has been working tirelessly and engaging with stakeholders to ensure that this payment transition is well implemented,” Kehoe’s office said in a statement.
The final rule for the Child Care and Development Fund was published in the Code of Federal Regulations (CFR) in April 2024, requiring states to pay in advance and on authorized enrollment.
Although Missouri received a waiver from the Administration of Children and Families until 2026 to implement this new payment practice, the Department has continued efforts to initiate these practices.
“Since announcing this priority in January, Governor Kehoe has emphasized the importance of this system working efficiently to deliver timely and accurate payments to providers across the state,” Kehoe’s office said.
2025’s House Bill 2 allocated funds from Missouri’s Child Care Development Fund to align the payment structure for child care providers with private payors.
“This was a decision that we made for this current budget year that we’re already six months into and nothing has been done with those funds to change how the allocation is happening,” Hein told ABC 17 on Dec. 30, 2025.
The update to payment practices will allow payments to be made in advance of services. And payments will reflect the total amount of approved child care, as long as the child attends a minimum of eight hours per month.
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A side-by-side map shows changes suggested to Missouri’s congressional districts. 
