How do federal changes impact Colorado's early childhood system?

Federal policy and funding shifts can cause uncertainty and concern. Early Milestones Colorado is pleased to launch Early Childhood Connect. We will provide up-to-date information about how federal changes impact Colorado’s early childhood system. We will provide news and updates across the four system domains: Learning and Development, Health and Well-being, Family Support and Education, and Economic Mobility.

You can read our Early Childhood Connect 2025 Summary here.

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What You Need to Know

Federal Updates for January

Colorado Federal Funding Freeze:

At the beginning of the year, the Trump Administration announced a freeze for Temporary Assistance for Needy Families (TANF), the Social Services Block Grant program, and the Child Care and Development Fund. These are federal programs that tens of thousands of low-income families in Colorado rely on.

After two temporary restraining orders, U.S. District Judge Vernon Broderick ruled that the Trump administration must continue funding child care subsidies while the lawsuit moves forward.

If the freeze happens, an estimated 15,000 families could lose access to food assistance, and approximately 28,000 children could lose access to child care. This could impact family economic security, workforce participation, and early childhood development statewide. Additional information on the projected impacts to CCCAP is available here.

Exclusion of Undocumented Children from Federal Programs:

A number of federal programs such as Head Start, WIC, and CACFP have recently been included on lists of programs that will exclude undocumented children. Colorado and 19 other states sued the federal government and there are now two injunctions to halt the enforcement of this policy. Over 580,000 comments were submitted to the Department of Health and Human Services to oppose this decision.

Know Your Rights: Five Things Parents Detained by ICE Should Know 

Parents have the right to make decisions about their child’s care, even from inside ICE detention. Learn more about parental rights here.

The Chilling Effect of Immigration Enforcement

A recent report from New America examines the effects of immigration enforcement on the child care workforce and mothers’ employment. They found that heightened immigration enforcement reduced the employment of mothers with preschool aged children and disrupted the child care market. The Children Thrive Action Network (CTAN) is now calling on Congress to reject upcoming federal budget proposes that would increase funding for Immigrations and Customs Enforcement (ICE). You can see what child advocates are saying about the impact of this enforcement on children here.

Upcoming Events

 

Please email Cat Portillo at cportillo@earlymilestones.org with any events we can include.

Learning and Development

Immigration Policy Changes

The new administration has made several significant changes to immigration policy:

  • Immigration Arrests Can Now Happen At Schools: Read more here.
  • Increased Deportations: Learn more here.

Colorado child care providers can support immigrant families and children by:

Education Policy Changes

President Trump signed an executive order to close the U.S. Department of Education. Milestones board member Dr. Rosemarie Allen shares how this decision will impact Colorado’s children in this video.

Here is what the U.S. Department of Education funds in Colorado:

  • Special education services for 117,600 students
  • Support for 17,800 children experiencing homelessness
  • School meals for 400,000 children

You can view this map to see how much funding districts in Colorado might lose.

A federal court recently ruled that preschoolers with LGBTQ parents cannot be excluded from Universal Preschool. Read more here.

Colorado Regulations for Child Care Centers in Emergency Events

Colorado has several licensing regulations that specify what to do in an emergency such as law enforcement action.

Health and Well-being

Medicaid Cuts

What we know:

  • The federal government is cutting Medicaid by nearly $1 trillion, resulting in millions losing coverage
  • 2 out of 5 rural children in Colorado receive coverage through Medicaid (Health First Colorado)
  • 1 out of 3 children in urban areas have coverage through Medicaid
  • 50% of children with special healthcare needs rely on Medicaid
  • 1 in 4 child care workers are covered by Medicaid

Medicaid is also a critical support for the early childhood workforce. Milestones board member Annie Lee shares more about the impact of Medicaid cuts for Coloradans.

Health Effects of Immigration Policy Change

Family detention, family member deportation, family separation, anti-immigrant harassment, and any interaction with the immigration system are considered adverse childhood experiences. That means they can impact the development of a child for life. The effects of these policies impact children regardless of the immigration status of the child. Learn more here.

Early Childhood Vaccinations

In September, the Trump administration claimed that Tylenol could cause autism. In scientific studies, “no single drug, chemical, or environmental factor has been strongly liked to autism.” Tylenol is the only recommended drug to reduce fever during pregnancy. Untreated fever can have dangerous effects for the mother and child.

The administration is likely to make changes to the early childhood vaccination schedule, including delaying the hepatitis B vaccination. Colorado has already started to create independent systems to assess the vaccination schedule and maintain access.

Family Support and Education

Updates on federal changes that impact Colorado’s families

  • Birthright citizenship: An executive order is attempting to end birthright citizenship for the children of undocumented parents.
    • There are currently injunctions in place to block the order. For now, all children born in the U.S. will have the right to citizenship.
  • Reconciliation bill impacts: This bill was passed on July 4th. It has the potential to:
    • Increase child poverty and hunger. The estimated number of children in Colorado impacted by Child Tax Credit exclusions is over 93,000. Over 33,000 children could lose SNAP benefits.
    • Decimate health care coverage. Medicaid covers over 500,000 children in Colorado and 44% of births.
    • Deport children and cause family separation. The total number of children in Colorado who could be impacted by ICE action is over 93,000.

Economic Mobility

What is Economic Mobility?

Economic mobility is a family’s capacity to attain higher income levels over several generations. You can learn more about economic mobility in our recent brief.

The federal government receives a long-term return of $10 for every $1 invested in children. Federal programs helped to cut poverty in half between 1967 and 2012. They contributed to improved health, increased education levels, and a better labor market. Less than 9% of all federal spending goes towards children.

In Colorado:

  • 47,000: Kids receive Temporary Assistance for Needy Families (TANF) 
  • 317,000: Kids receive Supplemental Nutrition Assistance Program (SNAP) 
  • 11,100: Children are in Head Start and Early Head Start 

Federal cuts to these programs would impact the educational, health, and economic outcomes of thousands of Colorado kids for years to come.

Do you want to know how much federal funding Colorado receives for programs that support children and families? Use this tracker to learn more.

Tariffs

Since April 1, families have spent an average of $400 more on baby supplies due to the tariffs. The most common baby items such as stroller, cribs, and car seats, have increased in price by 24%.

How Do Federal Supports Impact Child Care Providers in Colorado?

Early Milestones Colorado surveyed licensed child care providers within Colorado in February and March 2025 to learn how federal supports impact their child care programs. You can read the brief here.

How many child care providers in Colorado get federal funding?

  • 2 in 3 providers get some federal funding
  • 1 in 3 providers get federal funding for multiple programs

You can view this resource to learn about how recent executive orders impact non-profit organizations.

Partners