SC Childcare Scholarship Program Halted Amid Funding Shortfall

The South Carolina Department of Social Services (DSS) has temporarily stopped accepting applications for its childcare scholarship program, a pause that affects thousands of families across the state. As of Monday, DSS halted both new applications and renewals due to the depletion of federal COVID relief funds and delays in receiving crucial additional government funding.

The program currently supports more than 24,000 children enrolled in childcare. The decision raises significant concern for working families who rely on the financial assistance to ensure their children are in safe environments while they are at work.

DSS Chief External Affairs Officer, Connelly-Anne Ragley, noted the extremely high demand for childcare assistance in South Carolina. The agency is now waiting for $20 million in recurring funds from the state’s General Assembly, which is set to reconvene in January. South Carolina is reportedly one of ten states currently facing similar childcare funding challenges.

While the general intake is paused, DSS confirmed that existing scholarships and applications for children meeting specific protected priority categories remain unaffected.

Families who are experiencing homelessness, receiving TANF (Temporary Assistance for Needy Families), or involved with child welfare services, as well as children with special needs, can still apply under strict guidelines.

DSS is aiming to resume accepting new children into the program by 2026, with ongoing evaluations of priority applications being conducted on a case-by-case basis.

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