Stabilization Fund Strategies: Using Federal Child Care Funds to Reach Home-Based Child Care Providers

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Home-based child care (HBCC) is an essential element of the early childhood education landscape and has been an active participant in the provision of child care since the onset of the pandemic. HBCC providers include licensed family child care, family child care that might be exempt from licensure in your state, as well as license-exempt family, friend and neighbor providers.  

Given the critical role that HBCC providers play, and the challenges they currently face, it is essential that we focus resources on HBCC providers and move quickly to meet their needs.  The pandemic has impacted HBCC providers both personally and professionally. Most HBCC providers are sole operators, both caring for children and running their business.  This one person needs to balance education, business management, and daily facility cleaning, and as a result they are often stretched thin under even the best of circumstances. 

We also recommend reading our supplementary CCDF Policy and Investment Recommendations for States resource which offers ideas and suggestions for states to consider as they prioritize stabilizing the supply of HBCC .

October 9, 2025
Families and child care providers are being squeezed as pandemic-era supports expire and federal funding stalls. Across the country, home-based providers are struggling to stay open amid lower reimbursements and rising costs. Without stronger federal investment in the Child Care and Development Block Grant (CCDBG), tens of thousands of children could lose access to care.
September 30, 2025
Carmela is a family, friend and neighbor caregiver who is proud of her Hispanic heritage. Learn more about how her Hispanic heritage shapes her work as a HBCC caregiver in this blog.