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The NGA Center project launched in January 2025 convenes governors’ offices, agency leaders, and experts to explore ways to safeguard, align, and sustain ECE investments amid policy changes. The material details federal shifts affecting Medicaid and SNAP, explains resulting cost and eligibility pressures, and links downstream impacts on ECE program continuity and the workforce.",{"@graph":69,"@context":126},[70,84,105],{"@type":71,"itemListElement":72},"BreadcrumbList",[73,77,79,82],{"item":74,"name":75,"@type":76,"position":8},"https://docshare.wps.com","Home","ListItem",{"item":78,"name":9,"@type":76,"position":14},"https://docshare.wps.com/document/",{"item":80,"name":40,"@type":76,"position":81},"https://docshare.wps.com/document/research-report/",3,{"item":83,"name":65,"@type":76,"position":19},"https://docshare.wps.com/document/strategic-financing-for-early-care-and-education-systems-nga-center-project-january-2025/586269/",{"url":83,"name":65,"@type":85,"image":86,"author":91,"headline":65,"publisher":94,"fileFormat":97,"inLanguage":63,"description":67,"dateModified":98,"datePublished":99,"encodingFormat":97,"isAccessibleForFree":100,"interactionStatistic":101},"DigitalDocument",{"url":87,"@type":88,"width":89,"height":90},"https://docshare.wps.com/thumbnails/strategic-financing-for-early-care-and-education-systems-nga-center-project-january-2025/586269.png","ImageObject",300,407,{"name":92,"@type":93},"Taylor Morgan","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-11-06","2026-10-15",true,{"@type":102,"interactionType":103,"userInteractionCount":34},"InteractionCounter",{"@type":104},"ViewAction",{"@type":106,"mainEntity":107},"FAQPage",[108,114,118,122],{"name":109,"@type":110,"acceptedAnswer":111},"Why do state and territory ECE systems need strategic financing approaches?","Question",{"text":112,"@type":113},"Because federal funding fluctuations and shifting priorities increase uncertainty, requiring long-term approaches to safeguard and sustain ECE investments for children and families.","Answer",{"name":115,"@type":110,"acceptedAnswer":116},"What major federal law changes affect Medicaid for ECE-relevant services?",{"text":117,"@type":113},"H.R. 1 changes Medicaid through work requirements, limits on provider-tax based state matching, reduced retroactive eligibility periods, immigrant eligibility rollbacks, and adjustments affecting eligibility oversight and provider payments.",{"name":119,"@type":110,"acceptedAnswer":120},"How does H.R. 1 change SNAP costs for states and territories?",{"text":121,"@type":113},"It raises the administrative cost share from 50% to 75% and can require states and territories to fund a portion of benefit costs based on a payment error rate (PER).",{"name":123,"@type":110,"acceptedAnswer":124},"How are Medicaid and SNAP changes connected to early care and education?",{"text":125,"@type":113},"ECE systems and the ECE workforce are closely interconnected with Medicaid and SNAP, so changes to those safety net programs can create downstream impacts on early care and education.","https://schema.org",{"og:url":83,"og:type":128,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":130,"canonical":83},"index,follow",{"doc_id":132,"site_id":62},586269,1792209211,{"code":4,"msg":5,"data":135},{"doc_id":132,"user_id":136,"nickname":92,"user_avatar":137,"doc_module":4,"category_id":39,"category_name":40,"doc_title":65,"doc_description":67,"doc_content":138,"file_id":139,"file_url":140,"file_type":141,"file_size":142,"view_count":34,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":29,"language":143,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":144,"faqs":145,"seo_title":146,"seo_description":67,"update_tm":147,"read_time":148,"preview_page_count":4},1099523885336,"https://ap-avatar.wpscdn.com/davatar_276721f389ce27ea32af1340a28f341c","| | STRATEGIC FINANCING FOR EARLY CARE AND EDUCATION SYSTEMS |\n| --- | --- |\n\nState and territory early care and education (ECE) systems operate across a complex landscape of programs, agencies, and funding streams. States and territories rely on a mix of federal, state, and local investments to deliver these services, but fluctuations in federal funding – from expiring COVID relief dollars, to shifting congressional priorities – have heightened the need for long-term, strategic financing approaches.  \nTo help states and territories navigate this evolving environment, the National Governors Association’s Center for Best Practices (NGA Center) launched a project in January 2025 to bring together Governors’ offices, state and territory agency leadership, and subject-matter experts to explore strategies for safeguarding, aligning, and sustaining ECE systems. Throughout the project, states and territories explored opportunities to safeguard investments from fluxes in federal funding, strengthen coordination across agencies and programs, and build durable financing approaches to better meet the needs of children and families.  \nShifting Landscape at the Federal Level  \nOn July 4, 2025, President Donald Trump signed into law House Resolution 1 (H.R. 1), titled the One Big Beautiful Bill Act (OBBA) . The bill enacted broad fiscal and policy changes to major federal programs, including Medicaid and the Supplemental Nutrition Assistance Program (SNAP), with significant implications for state and territory ECE programs. Changes include adjustments to Medicaid financing and eligibility and new reporting processes and administrative costs for the SNAP program—both of which will increase costs for states and territories in operating these programs. These changes are not occurring in isolation—new cost-sharing requirements and administrative burdens in core safety net programs are forcing states and territories to make difficult tradeoffs across human services programs, including early care and education.  \nTo help states and territories better understand the threats to ECE systems, NGA brought in presenters from partner organizations with subject-matter expertise to talk through specific challenges and offer perspectives on actions to mitigate pain points. Gina Adams from Urban Institute, Jessica Kirchner from the National Governors Association, Dr. Shantel Meek from the Children’s Equity Project, and Elisabeth Wright Burak from the Georgetown Center for Children and Families offered perspectives on changes to Medicaid and SNAP as well as ECE pain points.  \nMedicaid  \nMedicaid funding makes up the largest source of federal funds that flow to states and territories, with the program representing around 55% of this amount. States and territories utilize Medicaid to fund home visiting programs, developmental screenings, maternal health support, behavioral health services, and care coordination that link children and families to early intervention and social services. States and territories are increasingly viewing Medicaid as a key tool for advancing ECE priorities by integrating physical, behavioral, and developmental supports.  \nUnder H.R. 1, several changes to Medicaid carry significant implications for states and territories as they work to continue to support children and families. At a high level, H.R.1 changes to Medicaid include:  \n• New work requirements for Medicaid expansion adults, including more frequent eligibility checks;  \n• Restrictions on states’ ability to finance the state match through provider taxes  \n• Shortened the retroactive eligibility period for traditional Medicaid from 90 to 60 days, and from 90 to 30 days for expansion adults;  \n• Immigrant eligibility rollbacks;  \n• Changes to the Medicaid Eligibility Quality Control program that could result in financial penalties to states with certain eligibility error rates above 3% starting in FY 2030;  \n• Provider payment caps and restrictions; and,  \n• Eliminating incent","cbCaigNoZXYFXHd9","https://ap.wps.com/l/cbCaigNoZXYFXHd9","pdf",272685,"English","# Strategic Financing for Early Care and Education Systems\n## Project Overview (January 2025)\n## Shifting Landscape at the Federal Level\n## Medicaid Implications\n## SNAP Implications\n## Early Care and Education Programs","[{\"question\":\"Why do state and territory ECE systems need strategic financing approaches?\",\"answer\":\"Because federal funding fluctuations and shifting priorities increase uncertainty, requiring long-term approaches to safeguard and sustain ECE investments for children and families.\"},{\"question\":\"What major federal law changes affect Medicaid for ECE-relevant services?\",\"answer\":\"H.R. 1 changes Medicaid through work requirements, limits on provider-tax based state matching, reduced retroactive eligibility periods, immigrant eligibility rollbacks, and adjustments affecting eligibility oversight and provider payments.\"},{\"question\":\"How does H.R. 1 change SNAP costs for states and territories?\",\"answer\":\"It raises the administrative cost share from 50% to 75% and can require states and territories to fund a portion of benefit costs based on a payment error rate (PER).\"},{\"question\":\"How are Medicaid and SNAP changes connected to early care and education?\",\"answer\":\"ECE systems and the ECE workforce are closely interconnected with Medicaid and SNAP, so changes to those safety net programs can create downstream impacts on early care and education.\"}]","STRATEGIC FINANCING FOR EARLY CARE AND EDUCATION SYSTEMS - NGA Center Project January 2025 | PDF",1792057422,15]