05/21/2026
This could have some serious implications for childcare providers, programs, families, and most importantly the children. They ALL deserve the highest quality of care!
CPAOM is closely monitoring proposed changes to Michigan’s Child Development and Care (CDC) payment structure.
Currently, Michigan providers serving CDC families are reimbursed based on enrollment. The House proposal would revise that language and move toward attendance-based reimbursement instead.
During discussions with House leadership, CPAOM raised concerns about how this could impact providers in a state already facing child care deserts, workforce shortages, and extremely thin operating margins. We asked how shifting financial instability onto providers might affect access to care for Michigan families.
Speaker Matt Hall indicated that the proposal is intended to address fraud concerns and “root out fraud” by moving away from enrollment-based payments.
CPAOM absolutely supports strong oversight and responsible stewardship of public funds. Fraud prevention matters. At the same time, child care providers still carry fixed costs when children are absent due to illness, transportation issues, family emergencies, or schedule fluctuations. Staffing ratios, payroll, rent, insurance, licensing, and compliance requirements do not disappear when attendance fluctuates.
As these discussions continue, CPAOM will keep bringing provider perspectives and operational realities directly into conversations with lawmakers. We will also continue gathering feedback and impact statements from providers and partner organizations across Michigan to ensure those voices are part of the discussion moving forward.