Khalyl Mosley listens closely as Wisconsin Gov. Tony Evers reads “The Rabbit Listens” when he visited Acelero Learning in Racine, one of three Head Start child care providers he toured in Wisconsin Monday, February 10.(Photo by Mark Hertzberg for Racine County Eye/republished by permission. Not available for republication.)

This report is republished by agreement with the Racine County Eye, where it originally appeared.

RACINE — Governor Tony Evers visited Acelero Learning, a Head Start program in Racine, on Monday, observing classrooms and meeting with staff while raising concerns about the potential consequences of federal funding cuts to early childhood education.

His visit was the last of a statewide swing to highlight the importance of the state’s Child Care Counts program and the vital role that affordable child care plays in Wisconsin’s economy.

Evers’ visit followed a week in which a number of Wisconsin Head Start programs reported they were unable to collect grant funds they had been awarded from the federal payment system. Head Start provides early education and child care for children from low-income families, many of whom are working. 

On Monday, Jenny Mauer, executive director of the Wisconsin Head Start Association, said programs that made draws from the federal portal last week that were not fulfilled have now received their funding. “We are waiting to see how things go this week,” Mauer told the Wisconsin Examiner.

During his Racine visit, Evers stressed that programs like Head Start are essential not just for children’s development but also for keeping families economically secure. He warned that without reliable funding, both child care staff and the families they serve could face serious economic hardship.

“This program has been here for 60 years, and there is bipartisan agreement that it’s needed and it works,” Evers told Acelero Learning staff after his tour of the facility. “But there’s no guarantee it’s going to be here much longer if Congress doesn’t act. We’re already seeing delays and funding freezes as they try to decide whether the program works — it does.”

Staff at Acelero Learning shared with Evers how federal funding has helped them recover from pandemic-related setbacks. Initially forced to reduce classroom capacity and staff, the program was able to reopen classrooms and raise wages with federal support.

Still, the threat of further cuts looms large. Federal funding made it possible to pay infant and toddler teachers livable wages, which has been crucial for attracting and retaining qualified candidates.

A growing crisis for families and the economy

The potential closure of Head Start programs could have far-reaching economic consequences. Thousands of child care staff could lose their jobs, while parents—especially those in low-income households—may be forced to leave the workforce if they have to pay for the rising cost of full-pay child care.

Evers framed the issue as both an economic and social crisis, pointing out that child care is often the deciding factor for families with two working parents.

“If mom and dad both want to work, they need reliable, affordable child care. Otherwise, someone is staying home, and that hurts families and businesses,” Evers said.

Economic implications of losing Head Start

A recent report from ReadyNation found that nearly a quarter of parents who lost access to steady child care were fired from their jobs as a result. In rural areas, where Head Start programs represent a significant portion of child care options, the situation is even more dire.

Job loss for child care staff: Head Start programs employ thousands of teachers, aides, and support staff. If the program is defunded, staff could find positions with local school districts, but many could face permanent job loss, further weakening the already fragile child care workforce.

Reduced workforce participation: Parents who rely on affordable child care to stay employed could face having to leave their jobs if they can’t afford full-pay child care, leading to reduced family income and increased financial strain.

A survey by ReadyNation found that 23% of parents reported being fired from their jobs due to the lack of stable child care options.

Increased financial burden on families: Without subsidized care, families could see child care expenses consume a significant portion of their income.

In some areas, Jeff Pertl noted during the governor’s visit, child care costs already represent up to 24% of the median household income, making it difficult for families to manage other essential expenses like rent and food. Pertl is secretary-designess of the Wisconsin Department of Children and Families.

Disproportionate impact on rural communities: A report from the Center for American Progress lists rural Head Start programs as up to 22% of the overall child care supply in rural areas. Losing these programs would worsen an already severe shortage and stifle economic growth.

Slowed economic growth: With fewer parents able to work, local businesses may face a shortage of employees, further slowing regional economic growth.

The loss of reliable child care disrupts productivity, as parents are forced to juggle work and child care or drop out of the workforce entirely.

Wider social impact on children: Beyond economics, cutting Head Start would reduce access to early learning opportunities for tens of thousands of children. These early experiences are crucial for long-term educational success and overall development.

Tanya Wooden from the Wisconsin Early Childhood Association points to the science to support why early childhood education is so important. “Nearly 80% of brain development happens before the age of three, so supporting early childhood education now tells the story for later,” she said. “What do you want the future to look like?”

Evers talks about limited state options

When asked whether the state could reallocate federal funds to fill gaps if Head Start funding disappears, Evers said Wisconsin’s pandemic relief funds have already been exhausted.

“We don’t have any extra federal funds left from the pandemic to shift toward these programs,” he explained. “It’s on Congress to act. They own this issue.”

He encouraged Wisconsin residents to hold their congressional representatives accountable, particularly Republican lawmakers.

“We have several Republican members of Congress in this state. They need to do their jobs and ensure that programs like Head Start continue.”

Pertl joined Evers in calling for swift action, emphasizing the potential fallout if Congress fails to act.

“If Congress defunds Head Start, tens of thousands of children across Wisconsin will lose their child care,” Pertl said. “This crisis is already severe, and that would pour gasoline on the fire. We can’t let that happen.”

Securing Wisconsin’s future

Despite the uncertainty at the federal level, Evers reaffirmed his commitment to supporting early childhood education in Wisconsin.

He has proposed a $480 million budget for the Child Care Counts program over the next two years to stabilize the sector and support working families.

“This is our future,” Evers said. “We can’t abandon 60 years of quality early education. We’re going to have to fight for it every day, but it’s worth it — for the kids, for families, and for our state’s economy.”

Erik Gunn of the Wisconsin Examiner contributed to this report.

Reports republished from Racine County Eye are not available for republishing elsewhere.

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Children and a teacher sit at a table at a child care center. In Wisconsin, at least five Head Start child care centers have not yet gotten funds they've applied for from the federal government despite having incurred the expenses the money would cover. (Getty Images)

At least five Wisconsin Head Start child care programs for low-income families have reported that they’re still unable to collect federal funds to cover their routine costs in the last two weeks.

On Thursday, Sen. Tammy Baldwin (D-Wis.) sent a letter to Trump administration officials demanding they address the unexplained halt in payments.

“It continues to be a very significant problem,” said Jenny Mauer, executive director of the Wisconsin Head Start Association, the membership organization of Wisconsin’s 39 Head Start providers. Mauer said that as of late Thursday afternoon, at least five of those providers have not yet been able to receive payments for routine expenses submitted under their contractual agreements with the federal government.

The funding halt coincided with a broad freeze ordered by the Trump administration in federal grant and loan disbursement starting the last week of January.

Administration officials said the funding freeze did not include Head Start funds. Despite those assertions, Since Tuesday, Jan. 28, Head Start programs in Wisconsin and across the country have reported being unable to get paid through the online portal that processes their routine payment draw requests. 

The delays have persisted a week after two federal court orders to the administration to lift its freeze on payments.

“Up until Monday last week, these were not issues that our programs experienced,” Mauer told the Wisconsin Examiner on Thursday afternoon. She said Head Start directors around the state who have been with the program for up to a decade have confirmed the current problem is unprecedented.

“Typically we have really stellar communications with the Office of Head Start,” Mauer said. “Typically things work very smoothly.”

Fond du Lac program: 10 days without payment

In the lower Fox Valley, a three-county community action agency in Fond du Lac has yet to receive a payment for monthly Head Start expenses submitted 10 days ago.

ADVOCAP provides community services for Fond du Lac, Winnebago and Green Lake counties, including operating a Head Start child care program with three centers in Fond du Lac County and one in Green Lake County. The centers combined enroll 202 children, serving 191 families. 

April Mullins-Datko, ADVOCAP’s Head Start director, said the program’s expenses for January were submitted on Tuesday, Jan. 28 through the federal payment management system website. The expenses are usually about $250,000 a month.

Instead of the usual automatic acknowledgement message when the information is uploaded, “we got a ‘pending review’ message,” Mullins-Datko told the Wisconsin Examiner. 

She is accustomed to seeing the payment deposited in the agency’s account in 24 to 48 hours. As of Thursday, however, “we still cannot access our funding,” Mullins-Datko said. “This morning, the payment management website is not even online. It’s having a pretty big impact.”

On Wednesday, ADVOCAP released a statement outlining the halt in funds and its potential impact on the program. 

“ADVOCAP is doing everything in our power to continue providing uninterrupted Head Start programming while we await resolution. However, if the funding delay extends into next month, we will need to assess the implications for the future of our program,” the agency’s statement said. 

ADVOCAP’s current Head Start contract with the federal government runs through Dec. 31, 2028, Mullins-Datko said. The federal rules for the grant require the recipient agency to incur the expense, then submit those documents for reimbursement. Usually “it’s dependable. It’s just recently that it’s not,” she said.

Mullins-Datko said she has tried contacting federal Head Start staff in Chicago and Washington, D.C., but received no response. 

“Right now we’re having to start February services without cash flow coming in,” she said. “Currently we’re staying open, but we’re running on a line of credit that only goes so far.”

The vast majority of families the ADVOCAP Head Start program serves — 93% — “are working families,” Mullins-Datko said. “They’re working and trying their very best to make ends meet.”

In December, some child care providers in the Fond du Lac area closed, she added. “Child care is already difficult to find, and it’s very expensive,” Mullins-Datko said. Without Head Start, “Our families wouldn’t have access to child care.”

Reaching out to lawmakers

Mullins-Datko said she made 39 calls to the offices of Sen. Ron Johnson (R-Wis.)  and U.S. Rep. Glenn Grothman (R-Glenbeuhlah), as well as Baldwin.

On Thursday, a member of Baldwin’s staff called her, several days after her first inquiry. “They let me know that they’ve been flooded with calls and they apologized for not getting back sooner,” Mullins-Datko said. “Still no access to funds, but I remain hopeful.”

She said she has not heard back from the other lawmakers, however.

In a letter Thursday to Dorothy Fink, acting secretary of the federal Department of Health and Human Services, and Tala Hooban, acting Head Start director, Baldwin called attention to the persistence of the delays.

“Head Start programs in Wisconsin are continuing to have problems accessing their funds, which raises continued uncertainty about their ability to keep their doors open,” Baldwin wrote. “This is unacceptable and requires your immediate attention.”

Baldwin demanded an accounting of directives from the Trump administration in freezing funds as well as directives after the court orders to suspend the freeze. 

She also demanded information on the number of Head Start grant recipients who had trouble or were unable to access the payment system from Jan. 28 on, as well as details on the reasons recipients were unable to get access to the system. 

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Children outside with a child care teacher at The Playing Field, a Madison child care center that participates in the federal Head Start program. (Courtesy of The Playing Field)

More than half a dozen child care centers that serve low-income families through the federal Head Start program have been waiting for more than a week to be repaid for expenses they’ve already incurred for payroll, supplies and food for the children in their care.

Head Start and Early Head Start are federally funded programs that provide early education and child care to children from low-income families. Wisconsin has 39 Head Start child care providers serving 16,000 children across the state and employing about 4,500 staff, said Jenny Mauer, executive director of the Wisconsin Head Start Association.

“The chaos and uncertainty have been deeply earth-shattering,” Mauer told the Wisconsin Examiner on Tuesday.

Mauer said providers across the state who receive federal grant payments for Head Start have seen delays in receiving their payments. She has been in touch with all 39 and, as of Tuesday, there were seven providers serving about 3,000 children that haven’t been paid by the federal government for at least a week, she said.

“This is going to get really serious if this doesn’t get resolved soon,” Mauer said. “We’re not getting much in the way of answers. We’re not getting good explanations about anything. It’s incredibly frustrating.”

The Head Start payments stopped at the same time that a Trump administration memo announced a week ago that a broad array of federal grant and loan payments would be suspended. Two federal judges have ordered the White House to halt the suspension in payments, but there have been widespread reports of funds that have still not been released.

“People think the freeze is over,” said Rep. Andrew Hysell (D-Sun Prairie), whose district includes a child care provider affected and who posted a Facebook video decrying the federal action. “Yet these [federal] agencies are not providing the funds.”

The National Head Start Association, a membership organization for Head Start child care providers, has reported similar problems across the country.

“We’re definitely not alone, that’s for sure,” Mauer said.

Reach Dane, a Madison child care agency that provides child care for about 1,000 children in Dane and Green counties, is waiting on $600,000 that the nonprofit is due from Head Start, said Jen Bailey, Reach Dane’s executive director. The organization had to tap into its bank line of credit after payments failed to come through in the last week.

The funds are needed to make payroll for Reach Dane’s staff of 250, including child care teachers, people in food service and bus drivers who pick up and drop off children in the program.

“We’re kind of flying blind in a chaos storm, trying to figure out what is happening and why,” said Bailey, who is also president of the Wisconsin Head Start Association board.

Federal payments to Head Start programs are reimbursements for expenses providers have already incurred. Providers are accustomed to logging into a federal portal, submitting the expense information and receiving a reimbursement in about 24 hours.

Reach Dane typically submits its requests for payment once a week or so, Bailey said. A week ago Monday, Reach Dane was unable to log in to the portal at all, however.

Late Tuesday, Jan. 28, the portal was once again accessible, and Reach Dane submitted a payment request. A second payment request was submitted on Friday, Jan. 31.

“We have not received either of those,” Bailey said Tuesday. “As of right now both still show as pending in the system.”

In addition to serving Head Start children through its own child care centers, Reach Dane also works with private child care providers who enroll children from low-income families.

One private partner is The Playing Field, a nonprofit that operates two child care centers in Madison, one of them on the city’s West Side where the enrollment includes Head Start children. Reach Dane pays The Playing Field monthly to cover its Head Start kids.

Participating in Head Start is part of The Playing Field’s mission, said Abbi Kruse, who founded The Playing Field a decade ago with the goal of creating “an early childhood education program that any family would choose for their child.” From the start the organization’s model was to enroll children “from really different socio-economic and racial backgrounds,” she said, overcoming segregation in all its forms.

At the West Side location, enrollment is about one-third children on scholarship, one-third children whose parents can afford the full cost, and one-third who are covered under Head Start or Early Head Start. “Without that funding, they could not attend our program,” Kruse said. “Without that funding, we definitely could not sustain our model.”

Providers, families spread the word in the Capitol for Evers’ child care investment

Kruse said that Reach Dane sends a Head Start payment once a month to The Playing Field, which received the February payment on Monday. But if Reach Dane can’t resume receiving its federal funds, “obviously that’s not sustainable for them to continue doing that,” she said.

Some of the children served by her organization are from families living in shelters, sleeping in cars or hotels for the unhoused, for example, Kruse said. They may rely on The Playing Field not just for child care but for meals and other support, such as parenting classes.

“There’s a lot of support for families in our model, and to rip that away from people is just cruel,” Kruse said.

Mauer said that providers unable to collect the federal funds they’re due are scrambling to meet the shortfall.

The federal government requires that recipients must disburse the money they get within three days after collecting it. “They’re not sitting on a set of federal reserves to pay people,” Mauer said. “This is money for service already rendered.”

Providers who are on the hook for funds “are doing everything they can to keep their doors open,” she said. “They’re talking to creditors, they’ve opened up lines of credit, they’re talking to community partners and moving things around.”

If Head Start providers don’t survive, the impact on employers could be severe.

“The majority of folks that come to Head Start are working families,” Mauer said. Without child care, “that would mean those parents would have to make tough choices. It’s a terrible situation.”

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