DHR says 3,401 families affected by lower child care subsidy income limit

BIRMINGHAM, Ala. (WBRC) - The Alabama Department of Human Resources said 3,401 families were affected after it lowered the income limit for child care subsidies June 1, citing a lack of funding. For a family of four applying for the first time, the limit dropped by more than $9,600 a year.

WBRC reported Monday that Sen. Katie Britt, R-Ala., said she is “disappointed” in the way the DHR has approached the child care crisis, “by making it harder for our families to qualify for childcare assistance and forcing the attrition of special needs children by changing the State’s definition.”

Questions WBRC sent to DHR Friday, Oct. 30 and Monday, Nov. 2 about why eligibility changed were answered Friday evening, Nov. 6.

“We had to reduce spending because we did not have enough childcare funding to continue at the October-March spending levels,” a DHR spokesperson wrote when asked what prompted the change.

WBRC also asked who decided on the change and whether the State Board of Human Resources approved it or announced it publicly.

The spokesperson responded, “Services offered within a program is driven by how much funding is available for a particular program. Reductions were necessary due to the amount of available funding for the fiscal year and the expense patterns.”

The department did not say who made the decision or whether the State Board of Human Resources was involved.

What the subsidy is

The subsidy helps low-to moderate-income families pay for child care, and is funded primarily through the federal funds, with a required state share, and is administered by DHR.

The federal government allows states to set the income limit as high as 85% of state median income, but states can set stricter limits based, in part, on available funding. DHR told WBRC Alabama’s limit is now 48.9% of state median income. In February, the department told WBRC it was 60%.

What changed for families

According to DHR’s fact sheets, the income limit for a family of four applying for the first time dropped June 1 from $4,823 a month ($57,876 a year) to $4,019 a month ($48,228 a year). That is $9,648 a year.

For families already receiving help, the limit dropped from $5,358 a month to $4,555.

DHR said the change does not affect families in the middle of their certification period unless their income goes above 170% of the federal poverty level, which for a family of four is $4,555 a month.

DHR said 5,659 children, representing 3,401 families, were affected “over a 6-month period” because of the decision to lower income eligibility. It’s unclear if “affected” means families were denied, removed or both.

The amendment

States must submit an amendment to the Administration of Children and Families’ Office of Child Care within 60 days of the effective date of a substantial change to their plan. For a June 1 change, that was July 31.

In a statement to WBRC, the Administration for Children and Families said DHR submitted an amendment on Aug. 26 “that did not include all required information,” and re-submitted an updated amendment Sept. 10.

The Administration for Children and Families also said Alabama told the Office of Child Care it was preparing an amendment for submission in May, “but had to delay submission due to OCC system protocols.”

According to the approval letter, the Office of Child Care approved the amendment Oct. 30.

The letter said that in addition to the income limits, DHR amended the sliding fee scale and the phase-out for families whose income rises. Those changes took effect June 1. A separate change to whether job search counts as an eligible activity took effect Aug. 1.

The plan is not online

The Administration for Children and Families said Alabama “is required to post its CCDF Plan and any Plan amendments on their state web site” and referred WBRC to the state for the most recent version.

WBRC sent an email Friday morning to DHR’s communications director, commissioner, and a deputy commissioner to share that the letter approving the amendment was posted online, but the amendment was not.

In an email to WBRC Friday evening, a spokesperson said the amended plan is “available on the DHR website.” A WBRC review of the website as of 7:30 p.m. Friday showed the earlier version of the plan, labeled “Amendment 1” and approved in March 2025. It listed $4,500 a month as the income limit for a family of four.

WBRC could not find the details of the fee scale, phase-out, and job search changes because the amended plan is not online.

Notice to families and providers

Federal rules require states to give parents and child care providers “advanced written notice” of substantial changes that adversely affect eligibility or sliding fee scales.

WBRC found no public notice of the June 1 change. Providers have told WBRC they were not notified.

Asked why, DHR said the Child Care Management Agencies, which take applications and determine eligibility for the department, were notified.

“It is the CMAs who receive applications and determine eligibility that were notified. Clients receive a letter that states their certification period and this new change does not impact those benefits in the middle of the certification period unless their income went above the 170% FPL,” the spokesperson said.

Funding

Britt said DHR’s funding answers are “inadequate” because Alabama’s federal child care allocation has increased. Federal allocation tables show the state’s federal child care grant rose from about $226.4 million to about $231 million for the current grant year.

DHR’s explanation to WBRC refers to spending levels and available funding for the fiscal year, and does not address the allocation.

WBRC first asked DHR about the income limit in November 2025 and has asked for an on-camera interview since March. No one has been made available.

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