Child Care Provider: Federal Food Program Should Reimburse Everyone Equally

By Erika Felt, Owner, The Playschool House

Editor’s Note: State Senator Bob Hallstrom (District 1) introduced Legislative Resolution 296 in the Unicameral this year. The resolution supports reimbursing family child care homes in the Child and Adult Care Food Program (CACFP) at the higher Tier 1 rate and providing additional reimbursements for meals and supplements. The Legislature adopted LR296, and Senator Hallstrom sent letters to Nebraska’s congressional delegation urging the President and Congress to support the resolution. The measure aligns with The Child Care Nutrition Enhancement Act of 2025, which is currently pending in Congress as H.R. 2859 in the House and S. 1420 in the Senate. Child care provider Erika Felt testified in support of LR296 at its hearing.

I own The Playschool House, an in-home child care program serving Omaha families, and I lead Nebraska Providers’ Spot, a statewide resource and support group for in-home child care business owners. I’d like to share why the Child and Adult Care Food Program (CACFP) matters for Nebraska families and the child care workforce.

Early in my participation with the Midwest Childcare Association, a CACFP sponsor, I learned that clear documentation and compliance are central to the program. I also once interviewed a family whose child was being served a bowl of popcorn and a red drink each day for lunch. The choking hazards, lack of nutrition and developmental risks that come with that kind of diet are exactly why this program exists—and why equitable access to it matters.

Tiered Reimbursement System
The two-tiered reimbursement system was built on the assumption that providers in higher-income areas can absorb the additional costs of compliant meals. But that simply isn’t true. All licensed in-home child cares must adhere to CACFP meal rules whether or not they’re enrolled, yet Tier 2 providers receive far less support to meet those same standards.

Consider this: Mary, a Tier 2 provider on the edge of the city, drives 35 minutes for groceries and receives $247 per month for 10 children. Terri, a Tier 1 provider, drives seven minutes for the same groceries and receives $660 for eight children. Neither can raise their rates to cover the difference. So Mary makes the only sensible business decision: she drops the food program. Her families—already stretched to afford child care—must now send meals from home, or Mary offers lower-quality food to get by.

Healthy Food is Costly for Everyone
CACFP has taught me how to provide balanced, nutritious meals and share that knowledge with the families I serve. Healthy food is costly in every zip code. The tiered system puts providers and children at a disadvantage based solely on geography, not need.

LR296 will help stabilize quality care, support healthy childhood development and better serve the working families who are Nebraska’s backbone.

Read the letters to Nebraska’s federal delegation

Learn more about H.R. 2859 in the House and S. 1420 in the Senate