Cayuga County pauses new child-care assistance approvals, warns funds may run out by April 2026

Marshall, the county’s social services representative, told the Cayuga County Legislature’s Health & Human Services committee on Dec. 3 that the county must stop approving new child-care assistance applications because of a funding shortfall. “Our current allocation is $2,610,824,” Marshall said, and “we would run out of funds by April 2026” if spending continues at its present rate.

The county’s child-care assistance program guarantees 12 months of benefits once someone is certified eligible, Marshall said, which shaped the decision to halt new approvals as of Nov. 17. He said roughly 246 families are currently funded and that recertification decisions beginning in February will be denied for new or returning applicants if funds remain insufficient. Marshall added that some cases with mandatory funding requirements will still be covered, and the county will track denials and report them to the state.

Marshall and legislators attributed the shortfall to several state-level changes that expanded eligibility and increased county costs: New York raised the eligibility threshold to 85% of state median income and tightened parent-share rules (reducing local parent cost-sharing to a nominal amount), while providers may bill for up to 80 absences. County staff said the combination of more eligible families and higher provider rates produced the funding gap without additional state dollars.

County officials said they are lobbying state officials for additional funding and will report the number of denied applications to the state. Marshall said the program uses no local tax dollars, and the county will not add a local share to cover the shortfall.

Other social-service updates at the Dec. 3 meeting included the regular HEAP season opening Dec. 1 (running through April 7, 2026) and rising homelessness figures: Marshall reported the county was housing 138 single adults and 21 families under a Code Blue sheltering response. The county also accepted a state allocation for shelter arrears and eviction prevention (resolution HH9), which county staff said had helped 22 households with principal arrears the previous year.

The county asked legislators to expect constituent calls from providers and families affected by the decision. Marshall said the department will email legislators with details and maintain statistics on denials going forward.

The Department of Social Services’ announcements concluded with thanks to staff for managing service delivery during staffing and funding challenges.

The committee did not reverse the decision; Marshall said the county will revisit approvals if state allocations change.