October 1 marked the first day of the new federal fiscal year and unfortunately the first federal government shutdown in 17 years. It is not clear how long this shutdown will last. In the meantime, here’s what we know:
Department of Health and Human Services: The Child Care and Development Block Grant rules give states several years to spend the flow of funds they receive from the federal government. States receive funds quarterly and that next payment is on hold. Most states have balances that they can continue to draw down while they wait for a federal agreement to be reached. Head Start grants that have already been awarded and implemented should not be impacted but any grants intended to be awarded October 1 are on hold during the shutdown.
Department of Education: Title I funds from the Elementary and Secondary Education Act (ESEA) are used for preschool services in many school districts, and states were expecting an installment of Title I funds on October 1 that is now on hold. The same is true for the Individuals with Disabilities Education Act (IDEA), IDEA Part B for preschoolers. A long shut-down could become difficult for these services.
Department of Agriculture: The Child and Adult Care Food program will continue operations in October.
Source: Early Care and Education Consortium