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12 February 2025

Daycare Closures Spark Outcry Over Funding And Policy Issues

Funding delays and legal challenges leave families facing uncertain childcare futures.

Daycare centers across the United States are facing unprecedented closures driven by financial constraints and regulatory pressures. The recent announcement of Kelly’s Place Learning Center, situated in Aroostook County, Maine, highlights this alarming trend. Shyla Pinette, the owner, has confirmed the center will close on March 28, 2025, citing crippling late payments from the state as the main reason.

Pinette expressed her frustration: "The first year was going great. I was getting paid by the state regularly and then now it’s kind of, you’re two-three months behind. And not getting your payments on time, it puts you in a hole." This situation paints a grim picture for the 74 children, aged six weeks to 12 years, who rely on the center for care. Supported by 20 employees, the facility has served as both childcare and community support since opening its doors in 2023.

The pending closure has struck hard at families like those of the center’s employees. Emily Lee, who has worked at Kelly’s Place since its inception, weighed the emotional toll of the closure. "There’s definitely going to be some families negatively impacted by this closure and that's really saddens me as a mom to see it happen," she lamented. Lee, who is raising three children of her own, underscored the dependency many families have on such centers, tying their financial stability to the viability of local childcare.

Kelly’s Place’s struggles resonate deeply with the broader narrative about daycare funding and availability. Maine's childcare crisis has intensified as state funding issues become more pronounced, leading to the loss of trusted facilities. Though the future steps for families remain uncertain, Shyla Pinette remains grateful for the camaraderie from other daycare providers during these challenging times.

Meanwhile, across the ocean, similar turmoil is inflaming the childcare sector within Israel, where legislative and judicial actions have sparked fierce debates. Recently, the Attorney General's Office communicated to the Labor and Welfare Ministry about halting daycare subsidies for the children of ultra-Orthodox men who have not served military duty. This decision stems from a ruling by Israel’s High Court of Justice, which mandated changes to funding eligibility based on military service.

This ruling has ignited political backlash from the ultra-Orthodox community. According to Deputy Attorney General Gil Limon, the subsidies must cease by February 28, 2025, following the court's directives. Attorney General Gali Baharav-Miara explained this decision points to the implication for ultra-Orthodox families who may, effectively, lose access to daycare support. Prime Minister Benjamin Netanyahu's ultra-Orthodox allies have demanded new legislation to bypass these changes, but efforts to advance such laws were stymied due to lack of majority support.

Labor and Welfare Committee chairman Yisrael Eichler defended the community's stance, alleging the ruling from the High Court was politically motivated and discriminatory against the Haredi population. Eichler stated, "The court ruled not all Israeli children are equal in receiving daycare subsidies. I submitted a bill to enshrine the mother’s rights to subsidies so she can earn a living and work, regardless of what the husband does. If a husband is in prison, no one will deny the wife’s right to daycare subsidies for her child." His sentiments reflect deep-rooted concerns over the equitable treatment of families seeking support.

The juxtaposition of these two scenarios—the closure of Kelly’s Place due to financial instability and the legislative struggles of ultra-Orthodox families—reveals the unstable future of childcare services amid mounting challenges. Both circumstances reveal how systemic barriers, whether financial or regulatory, can threaten the livelihoods of providers and the welfare of children.

It’s clear both scenarios present pressing issues deserving urgent attention. If states and governments can’t devise appropriate funding mechanisms and equitable legislation, the fallout will be disastrous, forcing families to navigate increasingly precarious childcare options. For parents working hard to provide for their families, the reliability of daycare services remains far too often just out of reach.