What Providers Need to Know: Funding Freeze, Safety, and Support.

Important Note: The federal funding freeze announcements are a developing situation. This update is current as of January 14, 2026.

We know many providers and families are feeling serious concern and uncertainty right now. In this post, you’ll find important updates on:

  • Federal child care funding freezes and what they mean for providers like you
  • Harassment reports targeting immigrant and Somali child care providers
  • A Know Your Rights guide to help protect you

Federal Child Care Funding Freeze: What We Know

The Trump Administration has announced a freeze on child care funding to five states, including California. 

Under this highly political action, California and the other affected states must provide additional information and receive federal approval before they can access existing child care funds.

More than $1 billion in federal child care funding is at risk in California. While this does not represent all child care funding in California, it does fund a significant portion of vouchers and provider payments. More than 100,000 children in California could be impacted across all child care programs.

California already complies with extensive federal and state guidelines to ensure funds are directed to families and providers. Fraud is illegal and should be properly investigated and prosecuted, but politically targeted federal funding freezes for all child care services hurt every single provider and the children and families they care for. Despite this, these new barriers have been imposed.

At this time, we have confirmed with the State of California that providers should continue to expect payments as normal

We need to be very clear: this blatant move by the Trump Administration is political and is destabilizing the child care system. This is not the fault of family child care providers or the families we serve. Providers need more investment, not disruption. This action does nothing to address the child care crisis or make care more affordable. Instead, it risks harming children, families, providers, workers, and local economies across California.

Harassment Targeting Immigrant Providers 

At the same time, right-wing influencers are using this moment to spread fear and target immigrant child care providers, particularly Somali providers, with harassment and intimidation. We have received reports of these attacks happening right here in California.

Let us be clear: our union will not stand for this! Every child deserves a safe place to learn, and every provider deserves a safe place to work.

Know Your Rights

We’ve seen immigrant providers targeted across the country, and now Black immigrant child care workers are being singled out in an effort to divide communities and shift blame. When this happens, families of every race pay the price, through lost care, closed programs, and growing instability.

Knowing your rights is one way to protect yourself, and your family. Our union has created a Know Your Rights guide specifically for child care providers.

👉 Visit, save, and share: https://childcareprovidersunited.org/yourrights/ 

Our Union is Prepared to Protect Funding and Protect Families

Providers and families need real action to address the child care crisis, not distractions from federal inaction. When child care is destabilized, all families are affected.

CCPU is prepared to take action with the state and our allies to:

  • Protect and expand child care funding for at-home providers
  • Defend providers and children from harassment and intimidation
  • Stand up for families and children who depend on stable care

Just today (January 8, 2026), the State of California and other states filed suit to fight back against the child care funding freezes announced by the Trump Administration. Read about it here.

Our union and our members are no strangers to challenges. We are ready to stand together once again, but it’s going to take all of us!


Commit Today to Take Action

Complete this short digital commitment form to add your name to our list of child care providers ready to take action. In the coming days, our union will follow up about next steps to protect providers and families and the funding we rely on.

Together, we will protect our livelihoods, our families, and the future of child care.


January 14 Update – Federal Judge Blocks Funding Freeze Following Lawsuits by States

Late afternoon on Friday, January 9, a federal judge ruled the administration cannot block federal money for child care subsidies and other programs aimed at supporting children and their families.

What did the decision say?

Federal judge, Arun Subramanian, ordered the administration to release funding for three critical social service programs that support low-income families and individuals with disabilities, at least for the next two weeks, despite President Trump’s attempts to withhold those funds.

“This attempt by the administration is petty politics. It’s small, but it has big consequences – when you’re targeting the vulnerable, our children, our families, our seniors, the disabled, pulling away food, and housing and child care. It has no basis in fact or law, as we’ve shown when we go to court.”
-California Attorney General, Rob Bonta

While this decision brings short-term relief, it does not guarantee long-term stability. This administration has repeatedly shown a willingness to ignore court orders, and we cannot afford to let our guard down or assume they will do the right thing on their own. The most important action you can take today is to add your name to our ‘Protect Funding, Protect Families commitment as we prepare for the fight ahead. One thing is certain: we are not alone. Our union is ready to do whatever it takes to ensure child care services and the funding our communities depend on, are not interrupted. Add your name to our digital commitment form now!

Access your portal

Step 1

Go to portal site.

STEP 2

Click “Create Account.”

step 3

Complete the following fields, using the information provided in the benefits letter you received.

  • User Type: Member
  • Email: Enter your email address and confirm your email
  • First and Last Name: Enter your first and last name
  • SSN/SIN: Enter the last 4 digits of the Retirement Identification Number you received from your benefits letter. Do not enter the last 4 digits of your Social Security number.
  • Date of Birth: Enter your actual date of birth. If this doesn’t work, then enter the temporary date of birth from your benefits letter.
  • Zip Code/Postal Code: Enter the zip code exactly as written on your benefits letter
step 4

Click “Next” and the following screen displays

Enter the password, and three Security Questions and answers, and select the Terms of Use and Privacy Policy checkbox.

step 5

Click Finish, the account is created, and you are returned to the initial screen (see following screen example)

You will also receive an access code which will be sent to the email that you entered when you created your account. Note: Each time you log in from a new computer/device, you must enter a new access code.

step 6

From the initial screen, enter the email address you used to set up your account and password, and click Login

step 7

Enter the access code you received in your email to access the Dashboard screen

If you have any questions, or would like assistance registering your portal, call our CCPU Provider Resource Center at (888) 583-CCPU (2278) or PRC@ccpuca.org.

Info Sessions Recordings:

July 9 CCPU Retirement Fund Info Session

July 18 CCPU Retirement Fund Info Session

Frequently Asked Questions

Find answers to common questions in the FAQ section below.

Are the benefits from the Retirement Plan taxable income to me?

The State contributions to your Retirement Plan account are not taxable to you until you receive a distribution. There may be distributions options to defer those taxes.

When can I sign up for the Retirement Fund and where can I learn more?

Eligible providers are automatically enrolled in the retirement fund. However, the administrator, Zenith American Solutions, will ask eligible providers to update necessary information. It is important to provide this information so that your records are accurate, and to avoid delays accessing your account.



If you believe you are eligible, but have not received this mail, you may contact the CCPU Provider Resource Center for assistance at (888) 583-CCPU (2278) or PRC@ccpuca.org.

Have more questions?

If you have additional questions, you can call the CCPU Provider Resource Center at 888-583-CCPU (2278) from 9am to 5pm Monday-Friday or email at PRC@ccpuca.org.

WHAT – What benefits does the Retirement Fund expect to offer providers?

Expand the Retirement Fund Benefits Table to see benefits.

 Plan Rules
Eligible participants*

You are eligible to participate in the Retirement Plan for a 2024 contribution if you are:

  • A licensed child care provider
  • Who has been paid 6 or more months of child subsidy in the 2023 calendar year (can be non-consecutive months).
Eligibility for benefit credit for contributions in 2024*You will earn your full service credits for 2023 if you were paid for ten or more months of child subsidy in 2023. If you were paid for 6 or more months of child subsidy, you will receive 60% of your service credits, 70% for 7 months, 80% for 8 months and 90% for 9 months. You will not earn any service credit if you were paid for less than 6 months.
ContributionsThe only contributions to the Retirement Plan will be paid from funding won through the CCPU collective bargaining agreement. The Plan does not accept contributions from you.
Amount of annual employer contributions for 2024 service allocable to participants in 2025*You will earn one full service credit for the State contribution on your behalf in 2025 if you were paid for ten or more months of child subsidy in 2024. If you were paid for 6 to 9 months in 2024, you will receive a pro-rated service credit. You will not earn any service credit if you were paid for less than 6 months in 2024.
VestingYou are “vested” in any contribution correctly made to your account. You do not need to work a minimum number of years before 2024 to be entitled to a benefit.
Distribution events

You can elect to receive your account when:

  • You stop all work as a licensed provider paid for state subsidized child care for 9 consecutive months at any age (“terminate from service”);
  • You stop all work as a licensed provider paid for state subsidized child care for 3 consecutive months at age 60 or older (“retirement”); or
  • You attain age 73, which is the age you are required to start receiving payments, unless you are still working.
Forms of distributions

If you are age 60 or older and stop all work as a licensed provider for 3 consecutive months and elect to retire, you can choose to receive your account balance as:

  • One lump-sum payment
  • Approximately equal monthly payments for 5 years
  • Approximately equal monthly payments for 10 years

If you are younger than age 60 and stop all work as a licensed provider for 9 consecutive months, you can only elect to receive your account as one lump-sum payment.

Death benefitsSince your account is 100% vested, you can designate a beneficiary (or multiple beneficiaries) to receive your account balance if you die before you receive it.
InvestmentsThe Board of Trustees will manage how the Retirement Plan is invested on your behalf, with the assistance of investment professionals.

*Special rules apply to providers where more than one provider is on the payment record.

who

Who is eligible for the Retirement Fund benefits?

State contributions to the Retirement Plan are tied to the child care subsidy program. To be eligible for retirement benefits in 2024, you must be a licensed provider who has have been paid for work with a subsidized child in at least 6 months in 2023-these months do not need to be consecutive. License exempt providers are not eligible; however, if you become licensed in a year, your work in that year may count for eligibility.

when

When will the benefits be available?

Contributions to the Retirement Plan are tied to the child care subsidy program. To be eligible for retirement benefits in 2024, you must be a licensed provider who has have been paid for work with a subsidized child in at least 6 months in 2023-these months do not need to be consecutive. License exempt providers are not eligible; however, if you become licensed in a year, your work in that year may count for eligibility.

how

How can I get help enrolling?

If you are eligible, the Plan will automatically enroll you based on data received by the State of California. You should immediately update your information with the Plan so it has has all of your current information and you receive credit for your years of licensed work.