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SCHUMER REVEALS: AFTER TRUMP’S FUNDING FREEZE FIASCO, HEAD START PROGRAMS ACROSS UPSTATE NY & U.S. STILL MISSING MILLIONS IN VITAL FUNDING TO KEEP CHILDCARE RUNNING — EVEN LEADING TO CLOSURES, LAY-OFFS, AS FAMILIES & COMMUNITIES SCRAMBLE WITH SERVICE IN LIMBO; SENATOR DEMANDS IMMEDIATE ACTION TO FIX HEAD START FUNDING, GET $$$ OUT THE DOOR, AND GET NY FAMILIES THE ANSWERS & PEACE OF MIND THEY DESERVE

Last Week Amid Trump’s Illegal Funding Freeze The Head Start Online Payment System Shut Down Across The Country, Despite The Admin Saying It Was Exempt From The Freeze And Has Provided No Explanation Why This Occurred

Now A Week Later, Head Start Providers In NY And Across America Have Been Missing Payments They Rely On From Feds, Forcing Some Upstate Childcare Providers To Even Layoff Staff And Temporarily Shut Down Services Impacting Hundreds Of Families; Schumer Says This Cannot Continue And Is Demanding Immediate Action And Oversight

Schumer: We Can’t Let NY’s Head Start Providers Be Left In Limbo, We Need This System Fixed & Answers NOW

After Head Start providers in New York and across America were locked out of federal funding amid Trump’s federal funding freeze, U.S. Senator Chuck Schumer today revealed that a week later Head Start providers are now missing payments, facing delays and enduring severe technical issues with no end or clarity in sight. Schumer said after the payment management shutdown, despite the White House saying Head Start programs should be exempt, there have been continued reports of childcare programs in NY and across the country missing payments from the feds creating a growing problem, and even leading to some Head Start programs in NY temporarily closing or laying off staff, impacting hundreds of families in need of childcare.

Schumer is now demanding HHS immediately address this problem, fix the payment system, and provide answers to give Head Start programs the assurances and funding they need to continue their essential childcare in rural and underserved communities. 

“Trump’s illegal funding freeze created chaos for childcare programs across the country, and we still have no answer on why the payment system shut down. Now a week later Head Start programs still are missing federal payments, forcing some to shutter or even lay off staff, impacting hundreds of families here in Upstate NY. Enough is enough. Head Start providers cannot pay their teachers, staff or provide childcare without the assurances of payment,” said Senator Schumer. “I’m calling on HHS to take immediate action to ensure Head Start providers receive the funds and clarity they deserve. Right now Head Start providers and parents are worried sick this funding will continue to be delayed and they can be left high and dry when it comes to childcare. We can’t leave our children and families in limbo due to a chaotic and incompetent policy decision by this new administration. We need answers and this problem fixed now. Our parents, teachers, and children who rely on Head Start deserve nothing less.”

Schumer explained after the Head Start programs across the country – including in Michigan, Connecticut, and Wisconsin – are still unable to access funding leading to major issues, and New York is now seeing these impacts as well. Head Start programs across Upstate NY and NYC have reported trouble getting paid, putting their cash flow at further risk and jeopardizing their ability to make payroll consistently for staff. For example, the Cattaraugus & Wyoming Counties Project Head Start, which serves 200+ children and employs 80+ staff across both counties, has said they are still unable to access funds. Without federal funding, the program has been unable to reopen and was forced to temporarily lay off all staff until this problem can be addressed.

“As of Tuesday, January 28, 2025, all Head Start employees were sent home and program was closed due to the Executive Order to pause all federal grants and loans. Though this EO was rescinded, the pause has caused a back log of draw downs through the federal payment system. As of Tuesday, February 4, 2025, we still do not have answers. It seems the Department of HHS and the federal payment system are unable to agree where the problem is originating. We have almost 200 families without services and 84 employees without a job. To say it’s frustrating is an understatement,” said Cattaraugus & Wyoming Counties Project Head Start Board of Directors Chairperson, Andrea Aldinger. “I thank Senator Schumer for recognizing the importance of Head Start programs in local communities and for taking action to support affected families, children, and employees.” 

“The New York State Head Start Association (NYSHSA) Board of Directors is concerned that the recent pause in funding had significant consequences for the thousands of children and families attending Head Start preschools and Early Head Start in NY,” said NYSHSA President Carolyn Wiggins. “We have heard from Head Start programs from across the state, from Western New York, to the Southern Tier and New York City, have experienced funding delays that rendered them unable to make payroll and, in some cases, temporarily close. We thank Senator Schumer for fighting to get answers and address this problem so we can continue our essential work to help children and families across NY.”

Schumer is now leading Senate Democrats in demanding immediate action from the Trump administration and said HHS must fix this problem now and promptly disburse delayed funds to Head Start programs. The senators said programs and families deserve an explanation for why the funding freeze has continued and what the feds plan to do to ensure it never happens again. The lawmakers said families across America depend on this federal funding for childcare and their peace of mind.

Schumer said Head Start programs cannot afford to continue normal operations without the assurances of payment processing and notices of grant renewals and that the feds must deliver the funding needed to resume operations and Head Start programs in New York and across the country need immediate answers about why this happening.

“Despite reports of an end to a federal funding freeze, settlement house Head Start providers have still reported challenges and delays with payment since last week. Disrupting payments on contracted programs is devastating for child care providers who want to carry out their mission of caring for children and helping working parents get through their day to day. An interruption in cash flow, even for a few weeks, can have devastating consequences and puts providers in serious financial jeopardy to continue their operations. The Office of Head Start and the Department of Health and Human Services must prioritize the immediate payment of these vital child care services. Jeopardizing child care is no way to help working families,” said Susan Stamler, Executive Director of United Neighborhood Houses.

A copy of Schumer’s letter he is leading with Senator Kaine and 27 of their colleagues in the Senate to Acting U.S. Department of Health and Human Services Secretary Dorothy Fink and Acting Director of the Office of Head Start Captain Tala Hooban can be found below:

Dear Acting Secretary Dr. Fink and Acting Director Captain Hooban:

We are writing today to raise ongoing, urgent concerns experienced by Head Start programs in our states and across the country. These concerns include (1) a lack of clarity on the status of renewals and notice of awards in the February 1st grant cycle, (2) delays in processing reimbursements through the Payment Management System (PMS), and (3) a lack of clear communication with grantees throughout this confusing time.

We request your immediate action and assurance on the following:

  1. All requests for disbursements of funds submitted through PMS to be promptly processed to allow all Head Start programs to draw down federal funds;
  2. Programs on the February 1st grant cycle will be notified of their renewal or notice of award before the deadline to ensure no lapse in funding or program operations; and
  3. Transparent and consistent communication with Head Start programs to address the ongoing challenges.

Since its inception in 1965, Head Start has provided critical early childhood education and comprehensive services to nearly 40 million low-income young children and their families in communities across the nation. Today, Head Start programs are supported by 250,000 staff to serve nearly 800,000 children across the nation. Head Start’s comprehensive services ensure children receive age-appropriate health care, dental care, immunizations, and health insurance, and they provide referrals to other critical services for parents, such as job training, adult education, nutrition services, and housing support. For the last several years, Congress has worked in a bipartisan manner to recognize this longstanding federal program’s important work by providing increased appropriations.

Since the morning of Tuesday, January 28th, the Head Start community has faced immense uncertainty and disruptions by the Office of Management and Budget’s (OMB) memo (M-2513), directing federal agencies to “temporarily pause all activities related to obligation or disbursement of all federal financial assistance.” While the Trump Administration later clarified that Head Start would not be the target of the funding freeze, many Head Start programs across the country were unable to access the PMS to draw down federal funds. PMS was reinstated, but programs across the country have not had funding disbursed in a timely manner.

Head Start programs cannot pay their teachers and staff and continue normal operations without the assurances of payment processing and notices of grant renewals and awards. This will impact children, families, and communities across the country, particularly the rural communities where these programs represent a large share of the childcare options.

Even if this issue extends beyond the Office of Head Start, we urge you to do everything in your power to ensure these programs receive transparent and frequent communication on the progress of their funds being released. Head Start programs operate on razor-thin margins and cannot survive without timely intervention. Children, families, employees, and educators all depend on these critical federal funds.

Once these issues are resolved, we request you provide responses to the following questions:

  1. What factors contributed to delayed disbursements to Head Start programs through the Payment Management System? What steps will be taken to ensure such delays will not occur in the future?
  2. How many Head Start programs were impacted by this delay and what were the immediate consequences on operations and services for children and families?
  3. What factors led to the lack of communication about grant renewals and awards for the February 1st cycle? What steps will be taken to ensure timely notices in the future?

We thank you for your quick attention to this matter.

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