A program that provides child care services for lower-income families in Arkansas is making major changes in how providers will be reimbursed starting Wednesday, October 1, 2025. And that’s causing some big concerns. The School Readiness Assistance (SRA) Program subsidizes care for 16,000 young children for eligible families while parents work or attend school. In a news release made public on September 19, the Arkansas Department of Education (ADE) announced a reformulation of its reimbursement rates “based on a market rate survey, so payments reflect current costs of care, and adjusts the sliding scale copay based on family income.” The ADE further explains that families who rely on the program but do not fall at or below the poverty line will now be charged co-pays. As Little Rock Public Radio reports, all child care providers will be paid the same rate compared to the previous system in which higher quality providers received more money.
Elizabeth Scudder is a longtime teacher and childcare provider. Now working as a consultant, scutter says the move could discourage or remove incentives for providers to improve their quality of care. “As we moved up in levels, you know, there were incentives to move up there will still be incentives to move up. And then when they flipped it, so that our reimbursement rate was tied to our level of quality then that encouraged more people to work harder to become better, because don’t our children deserve the best possible care we can give them.” Scudder says childcare providers, some of which receive upwards of 70% of their revenue from the program, could face financial hardship because of the move. ADE leaders explain that these updated rates are intended to help reduce the current wait list, which currently stands at 1,266 applicants. Some refer to the SRA Program as a voucher program. But it has no connection with the Arkansas LEARNS Act of 2023, which is the state’s official voucher program. For more information on the SRA Program click here. And a recent sign of encouragement came from a national ranking for the state of Arkansas as the third highest in the country for early education programs. That’s according to results released by personal finance website WalletHub.
