child care

WASHINGTON — Heather Campbell lost her job working for a food bank over the summer because of federal funding cuts. Her husband serves as an officer in the Air Force, but now he’s facing the prospect of missing his next paycheck because of the government shutdown.

If lawmakers in Washington don’t step in, Campbell’s husband won’t get paid on Wednesday. Because the couple lacks the savings to cover all their expenses, they expect to survive on credit cards to pay the mortgage and feed their three children, racking up debt as the political stalemate drags on.

“You’re asking us to put our lives on the line or the people we love to put their lives on the line,” said Campbell, 39, who lives outside Montgomery, Alabama, near Maxwell Air Force Base. “And you’re not even going to give us our paycheck. What? There is a lot of broken trust there.”

The nation’s third shutdown in 12 years is once again raising anxiety levels among service members and their families because those in uniform are working without pay. While they would receive back pay once the impasse ends, many military families live paycheck to paycheck. During previous shutdowns, Congress passed legislation to ensure that troops kept earning their salaries, but time is running out before they miss their first paycheck in less than a week.

“There are so many things that Congress can’t agree on right now,” said Kate Horrell, the wife of a Navy veteran whose Washington, D.C., company provides financial advice to military families. “I don’t want to assume that they’re going to be able to agree on this.”

Paying the troops has support, but it’s unclear when a deal might pass

When asked if he would support a bill to pay the troops, President Donald Trump said, “that probably will happen.”

“We’ll take care of it,” Trump said Wednesday. “Our military is always going to be taken care of.”

Rep. Jen Kiggans, a Virginia Republican and former Navy helicopter pilot, has introduced a measure to maintain military and Coast Guard salaries, and it has bipartisan co-sponsors.

The House is closed for business until next week, leaving two days to take action before Wednesday’s payday. Missed paychecks for military service members are among the most serious pressure points in the shutdown, causing political pain for the lawmakers. Several proposals have been floated for voting on stand-alone legislation that would ensure no interruption in pay, but those are not expected to be brought up for consideration, for now.

Amanda Scott, whose husband is an Air Force officer in Colorado, said the uncertainty goes beyond the stress of just getting by — it chips away at the military’s ability to retain the best people and their readiness to fight.

“How ready and lethal are you if you don’t know if you can feed your family?” said Scott, 33, of Colorado Springs, who works for a defense contractor and volunteers as an advocate for military families. “A lot of these service members are highly skilled and can go out and make much more money in the civilian sector.”

Aid is available for service members, but it’s not enough for some families

Support is available for military families through nonprofits and charities. For example, some financial institutions are offering zero-interest loans, while each military branch has a relief organization.

But Campbell said she and her husband in Alabama can’t apply for a payday loan because they’re refinancing their house. They lack a substantial emergency fund because they were paying off student loans and moved several times in the last few years to military posts. It was often challenging for her to find steady work and child care.

“The opportunity to build up savings is really difficult on just one income,” Campbell said. “I don’t know many military families that have a month’s worth of income set aside just in case, let alone multiple months’ worth.”

Jen Cluff, whose husband recently left the Air Force, said her family was on a food aid program during the 2019 shutdown. But even the Special Supplemental Nutrition Program for Women, Infants and Children, also known as WIC, which helps more than 6 million low-income mothers and young children, would run out of federal money within two weeks unless the shutdown ends, experts say.

“We made so little and had three young children,” said Cluff, 42, of San Antonio. “We were definitely a family that had very little buffer.”

If Congress had not passed legislation to pay troops during the last shutdown, missing more than two paychecks “would have been catastrophic for us,” she said.

“Resentment can grow quickly,” Cluff said of the shutdown, adding that “the general public, and many in government, truly don’t understand the daily sacrifices our military members and their families make for our country.”

Wider effects feared in military-heavy areas

The economic impact will ripple through regions with large military footprints, like coastal Virginia, home to the nation’s largest Navy base and several other installations. The area’s 88,000 active duty service members and their families likely have pulled back significantly on spending, said Rick Dwyer, executive director of the Hampton Roads Military and Federal Facilities Alliance, an advocacy group.

“Think about service members who are deployed right now around the world,” said Dwyer, who served in the Air Force during previous shutdowns. “They’re having to wonder if their families are going to be able to pay the rent, the child care bills, the car payments.”

A shutdown contingency plan posted on the Pentagon’s website cites the use of funds to continue military operations from Trump’s big tax and spending cut bill. The Congressional Budget Office has said money appropriated to the Defense Department under the new law could be used to pay active duty personnel.

It was not clear if the funding would be used for that. The Pentagon said Thursday that it could not provide information “at this time.”

Its contingency plan says it will “continue to defend the nation and conduct ongoing military operations” as well as activities “necessary for the safety of human life and the protection of property.”

Listed among the highest priorities are securing the U.S.-Mexico border, operations in the Middle East and the future Golden Dome missile defense program. The plan also noted that “child care activities required for readiness” would continue.

Raleigh Smith Duttweiler, chief impact officer for the National Military Family Association, said most child development centers on military bases are still operating. But she said most service members pay for child care off base.

“Last I checked, my kids’ babysitter doesn’t take an IOU from the federal government,” said Duttweiler, whose husband is a Marine.

Finley writes for the Associated Press. AP writer Lisa Mascaro in Washington contributed to this report.

A fight over taxes consumers pay for cannabis products has prompted a standoff between unusual adversaries: child-care advocates and the legal weed industry.

On July 1, California’s cannabis excise tax increased from 15% to 19% as part of a political deal struck in 2022 to help stabilize the fledgling legal market. But the industry now says the increase is untenable as it faces a sharp decline in revenue and unfair competition from the growing illicit market.

An industry-sponsored bill moving through the Legislature — and already passed by the Assembly — would eliminate the tax increase and lower the rate back to 15% for the next six years. This would reduce by $180 million annually the tax revenue that the state contributes toward law enforcement, child care, services for at-risk youth and environmental cleanup.

The losses include about $81 million annually that would have specifically funded additional subsidized child-care slots for about 8,000 children from low-income families.

“They are choosing the cannabis industry over children and youth,” said Mary Ignatius, executive director of Parent Voices California, which represents parents receiving state subsidies to help pay for child care.

Child care faces setbacks

The tension over taxes for legal weed versus child care — both industries in crisis — highlights the inherent pitfalls of funding important social services with “sin taxes,” whether it’s alcohol, weed or tobacco — funding that experts say is often unstable and unsustainable.

Engage with our community-funded journalism as we delve into child care, transitional kindergarten, health and other issues affecting children from birth through age 5.

The measure’s next stop is the Senate. All bills in the Legislature must be passed by Sept. 12, and the governor must sign them by Oct. 12.

“We can both support the legal cannabis industry and protect child care. If the measure reaches the governor’s desk and is signed into law, we will work with the Legislature to ensure there are no cuts to child care due to this policy change,” said Diana Crofts-Pelayo, a spokesperson for Gov. Gavin Newsom.

But it’s unclear where money to backfill the losses would come from, as the state grapples with declining finances and federal funding cuts.

The money from cannabis taxes represents a fraction of California’s $7-billion annual child care budget. But as federal cuts to social services for low-income families, including Head Start, continue, any potential loss creates a sense of panic among child care advocates who say California ought to be shoring up revenue options right now — not reducing them.

“Every single dollar needs to remain in the programs that are serving our children and families. What may seem like a small amount to some is everything for advocates who are fighting for it,” said Ignatius.

The past decade has been a time of progress for child care advocates, as the state rebuilt a child care industry decimated by cuts during the Great Recession. California has more than doubled spending on child care since the recession low, added about 150,000 new subsidized child care slots, eliminated the fees paid by families, increased pay for child care workers and added a new public school grade level for 4-year-olds.

But despite these efforts to bolster the market, California’s child care industry still suffers from low pay for workers, unaffordable costs for families, and a shortage of spaces for infants and toddlers.

The waiting list for subsidized child care slots is still so long that some parents have taken to calling it the “no hope list,” said Ignatius. Those who join the list know they could wait years before a spot opens up, and by that time their child may already be in kindergarten or beyond.

Jim Keddy, who serves on an advisory committee to help determine what programs the tax will finance, opposes the proposed reduction.

“If you don’t work to promote and hold on to a funding stream for children, someone eventually takes it from you,” said Keddy, who is also executive director of Youth Forward, a youth advocacy organization.

The cannabis industry, however, argues that while the causes the tax supports may be worthwhile, market conditions are so abysmal that it cannot weather an increase.

Legal cannabis industry struggles to remain afloat

“It is sad that the cannabis industry is being pit against social programs, childhood programs and educational programs,” said Jerred Kiloh, president of United Cannabis Business Assn. and owner of the Higher Path dispensary in Sherman Oaks. “The reality is, if our legal industry keeps declining, then so does their tax revenue.”

In 2022, when the cannabis industry agreed to increase the excise tax, quarterly cannabis sales were at their peak. The agreement offered the new industry temporary relief by eliminating the cultivation tax passed by voters under Proposition 64, the 2016 initiative that legalized cannabis. In exchange, state regulators would be able to increase the excise tax after three years to make the change revenue neutral.

But since then, sales have plunged to their lowest levels in five years, due in part to the growing illicit market that is siphoning off sales from legal dispensaries.

In L.A., Kiloh said that between state and local taxes, his legal dispensary customers end up paying 47% in taxes on their purchase. But if they shopped instead at any of the thousands of stores in L.A. selling cannabis products without a license, they could avoid state and local cannabis taxes entirely.

“A 30% increase in an excise tax that is already egregious is just kind of the breaking point for a lot of consumers,” said Kiloh.

Even before the excise tax hike went into effect, just 40% of the cannabis consumed in California was obtained from the legal market, according to the California Department of Cannabis Control.

The measure to drop the excise tax, AB564, received widespread support from Assembly members, including stalwart supporters of early childhood education like Assembly Majority Leader Cecilia Aguiar-Curry (D-Winters), chair of the Legislative Women’s Caucus.

“Revenues from legal sales of cannabis are already dropping and if we keep raising the tax they’ll drop even more. That penalizes cannabis businesses who are doing the right thing and working within the legal market. And, it makes illegal sales from cartels and criminals more competitive,” she said in a statement. “We need to fund our kids’ education through the State General Fund, but if we want to supplement education and youth programs, cannabis tax dollars will only exist if we steady the legal market and go after those illegal operators.”

How reliable are sin taxes?

Lucy Dadayan, a researcher who studies sin taxes at the Tax Policy Center, a nonpartisan think tank based in Washington, D.C., said the California predicament reflects a larger problem with sin taxes.

If a sin tax is successful and consumption drops — as it has with tobacco — “the tax base shrinks. And in the case of cannabis, there’s the added wrinkle that a high tax rate can push consumers back into the illicit market, which also reduces revenue,” she said.

This is not the first time services for the state’s youngest children have been affected by reductions in a sin tax.

In 1998, California voters slapped cigarettes with a hefty surcharge to pressure smokers to give up their habit. The state used the money to fund “First 5” organizations in every county, which are dedicated to improving the health and well-being of young children and their families. But the less people smoked over time, the less money was available for early childhood programs, and the First 5 system now finds itself confronting an existential crisis as it faces a rapidly declining revenue source.

Meanwhile, the critical social services like child care that come to depend on sin taxes tend to get more and more expensive, creating a “mismatch” in the tax structure versus the need, said Dadayan.

“In the short term, these taxes can raise a lot of money and help build public support for legalization or regulation. But in the long term, they can leave important programs vulnerable because of shifting consumption patterns,” she said.

This article is part of The Times’ early childhood education initiative, focusing on the learning and development of California children from birth to age 5. For more information about the initiative and its philanthropic funders, go to latimes.com/earlyed.

WASHINGTON — The Trump administration will release an estimated $1.3 billion in previously withheld grant money for schools nationwide, but has warned states that it will rescind funding not spent for “allowable activities.”

About $5 billion to $6 billion remains in limbo. In typical years, this funding would have begun reaching states and school districts starting on July 1. California joined about two dozen states this week in suing for the release of the funds, calling the Trump administration action “unconstitutional, unlawful and arbitrary.”

In filing their lawsuit, California officials estimated that they were due close to a billion dollars. The California Department of Education said it received word Friday that the partial release represented about $158 million of that total.

The partial release came after 10 Republican senators on Wednesday sent a letter imploring the Trump administration to allow frozen education money to be sent to states.

The senators said the withheld money supported programs that had longstanding bipartisan support and were critical to local communities. The money had been appropriated by Congress in a bill that was signed by President Trump.

“We share your concern about taxpayer money going to fund radical left-wing programs,” the senators wrote to the Office of Management and Budget. “However, we do not believe that is happening with these funds.”

The Trump administration has argued otherwise, alleging that funding has been used to undermine policy goals that include having all classes conducted in English. The administration also accused agencies of using funds to advocate for immigrants who lack legal status in the country.

The notification to states about the release includes a long list of laws that states are warned not to violate including the U.S. Constitution, the Civil Rights Act of 1964 and Title IX of the Education Amendments of 1972, which bans discrimination based on sex.

“To the extent that a grantee uses grant funds for such unallowable activities,” which the notice does not define specifically, “the [Education] Department intends to take appropriate enforcement action … which may include the recovery of funds.”

In separate actions, the Trump administration already has threatened California with pulling all federal funding for violations of Trump administration policy. This threat was made recently in connection with the state allowing trans athletes to compete in girls’ and women’s sports and government officials designating their jurisdictions as sanctuaries for immigrants.

What the money pays for

The withheld money paid for after-school and summer programs, adult literacy, English language instruction, teacher training and migrant education supports. The Office of Management and Budget said it held back the funds as part of a review to align spending with White House priorities.

The funds released Friday were partly intended to support many summer school programs, some of which shut down across the country due to the hold-back. This funding also supports after-school programming during the regular school year.

Without the money, school districts and nonprofits such as the YMCA and Boys and Girls Clubs of America had said they would have to close or scale back educational offerings this fall.

The money released Friday also pays for child care so low-income parents can work. In these programs, children also receive reading and math help, along with enrichment in science and the arts.

Despite the money’s release Friday, schools and nonprofits have already been disrupted by two weeks of uncertainty. Some programs have made plans to close, and others have fallen behind on hiring and contracting for the fall.

“While we are thrilled the funds will be made available,” said Jodi Grant, executive director of the Afterschool Alliance, “the administration’s inexplicable delay in disbursing them caused massive chaos and harm.” Many after-school programs had canceled plans to open in the fall, she said.

David Schuler, executive director of AASA, an association of school superintendents, praised the release of after-school money but said that the remaining education funding should not be withheld.

“Districts should not be in this impossible position where the Administration is denying funds that had already been appropriated to our public schools, by Congress,” Schuler said in a statement. “The remaining funds must be released immediately — America’s children are counting on it.”

Republican Sen. Shelley Moore Capito (R-W.Va.), who chairs the Senate Appropriations subcommittee that oversees education spending, was among the senators who signed the letter, which called for the full release of funds, including for adult education and teaching English as a second language.

“The decision to withhold this funding is contrary to President Trump’s goal of returning K-12 education to the states,” the senators wrote. “This funding goes directly to states and local school districts, where local leaders decide how this funding is spent.”

Sen. Patty Murray (D-Wash.) called on the White House to release the rest of the money.

“At this very moment, schools nationwide are crunching the numbers to figure out how many teachers they will need to lay off as Trump continues to hold up billions in funding,” Murray said Friday in a statement. “Every penny of this funding must flow immediately.”

Ma writes for the Associated Press.