Working parents across Utah face the loss of child care subsidies after the state lowered income limits for its assistance program Oct. 1.

The cuts add pressure on Millcreek-area families who already lost a subsidized child care center earlier this year. Salt Lake County voted to close four centers, including the Millcreek Activity Center, which was slated to shut down May 31. That facility had served preschool and school-age children at costs of $225 to $460 a month.

Under the new rules for the Employment Support Child Care program, the income ceiling for new applicants drops to about $51,400 a year for a family of three. Families already receiving help will lose eligibility at their next annual review if they earn more than about $66,840, down from the previous threshold of 85% of the state median income. The Salt Lake Tribune first reported the cuts' impact on families.

The Utah Office of Child Care estimates 934 families and 1,573 children will be affected statewide, about 11% of current recipients, according to the Moab Times-Independent. Families will not lose assistance immediately; changes take effect as each household reaches its next annual review.

Millcreek City Councilmember Silvia Catten voiced concern about the broader child care squeeze in July, when the county was closing its centers. "I do think the state needs to get involved and assist in subsidizing childcare," Catten told the Millcreek Journal.

Monthly bills jump by thousands

West Jordan resident Azteca Druce Valerio-Bedolla told the Tribune she had been paying about $180 a month for two of her three children to attend daycare under the subsidy. Under the new rules, her monthly bill will rise to $2,800.

Valerio-Bedolla and her husband, Tanner, both work. She said the change may force her to quit her job.

"I am a better mother when that's not the only thing I'm allowed to be," she told the Tribune.

Roy single mother Kyra McDonald told the Tribune the cuts would force her to reduce her work hours because she cannot afford before- and after-school care without the subsidy.

Federal funding drove the change

The Utah Department of Workforce Services said the cuts stem from two years of declining federal funding through the Child Care and Development Fund. Utah's overall child care funding fell from $165.3 million in federal fiscal year 2024 to $143.3 million in 2025, with a slight uptick to $144.3 million projected for 2026.

DWS spokesperson Jared Mendenhall told the Moab Times-Independent on Sept. 30 that the changes "are being driven by a significant reduction in federal funding, not a reduction in state funding for child care assistance."

The Office of Child Care projects the policy changes will save an average of about $15.6 million per year during fiscal years 2027 through 2029.

Beyond the income-limit changes, the state is also reducing maximum subsidy payments for children approved for fewer than 32 hours of care per week. That change affects about 5,332 children each month, with average monthly reductions ranging from $44 to $116.

Push for state dollars

At a Sept. 9 Child Care Advisory Committee meeting, the panel voted 9-0 to ask state leaders to fill the funding gap with state dollars, as KUTV reported. State Rep. Jake Fitisemanu of West Valley told the committee that day: "This is not just a federal issue."

No state legislative hearing or vote to replace the lost federal funding has been scheduled.

Families can check their eligibility and appeal through their myCase accounts on the DWS website or contact their regional Child Care Resource Agency.