Why It Matters

The Department of Defense's military child care assistance program has grown substantially, but a critical gap in how the agency communicates with providers threatens to undermine the system's integrity and fairness. The program, which helps service members afford care through subsidies to community-based providers, expanded significantly after 2021 as DOD increased spending and extended services to more states.

Yet as the program has grown, so has the proportion of providers operating outside full compliance with program standards, and many providers say they're left in the dark when facing discipline or removal.

A new Government Accountability Office report released June 17 found that DOD is failing to clearly inform providers about their rights when placed on probation, suspended, or terminated from the fee assistance program. The agency does not tell providers they can request additional information about decisions or seek a second review, according to the report. This gap creates a system where providers can be removed without clear recourse, while military families lose access to care options they depend on.

The stakes are significant: military child care assistance is now essential to how the Pentagon maintains readiness and retains personnel. For military families, particularly those stationed in areas with limited child care options, these providers represent a lifeline. For providers themselves, inclusion in the program can be the difference between sustainability and closure.

The Big Picture

Between fiscal 2019 and fiscal 2024, the DOD fee assistance program experienced substantial growth across all military services. Both the number of community-based providers participating in the program and the number of children served increased during this period. The most significant expansion occurred after fiscal 2021, when military service officials cited additional program spending and efforts to expand the program to more states as drivers of growth.

This expansion reflects a strategic priority. DOD considers military family child care essential to overall mission readiness, efficiency, and retention. As the military faces ongoing challenges in recruitment and retention, investing in child care support has become a tool for keeping service members in uniform. Yet this rapid growth has outpaced the agency's ability to manage program quality and communication effectively.

The Compliance Problem

The rapid expansion has created a persistent compliance challenge. From fiscal 2019 through fiscal 2024, the proportion of non-compliant providers (those not meeting requirements such as national accreditation) ranged from approximately one-quarter to two-thirds across the military services. Some providers lack required state quality ratings or national accreditation because achieving these credentials can be costly and time-consuming, according to providers interviewed for the report.

To accommodate this reality, DOD has granted exceptions allowing children to attend providers that do not meet all program requirements. Military service officials explained that exceptions are granted on a case-by-case basis, particularly when no participating providers are located near a family's home. But this patchwork of exceptions and non-compliant providers suggests the program is being stretched beyond its original design.

Communication Challenges

Providers identified three major challenges in working with DOD's military child care assistance program. The first involves meeting initial eligibility requirements, the costly and time-intensive process of obtaining accreditation or state quality ratings. The second is administrative burden, specifically ensuring military families correctly complete and submit required paperwork.

The third challenge is the one the GAO report highlights as most actionable: unclear communications from DOD itself. A child care provider operating over 1,500 participating centers nationwide reported that their centers sometimes received unclear information from DOD in ineligibility letters sent to providers facing probation, suspension, or termination. When a provider receives such a letter, they don't know what recourse exists.

The GAO reviewed letter templates from the military services and found a critical omission. The templates do not state that providers can request additional information about the decision or an additional review. Moreover, DOD's forthcoming Business Rule Guidance for the military services does not require notification of these rights either. This means the problem is systemic, not isolated to a few communications.

The GAO's Recommendation

The GAO made one recommendation directed at the Department of Defense. It calls on the Secretary of Defense to ensure that the Office of the Deputy Assistant Secretary of Defense for Military Community and Family Policy directs the Military Services to clearly inform child care providers placed on probation, suspended, or terminated from the fee assistance program about their option to request additional information about the decision or an additional review.

DOD agreed with the recommendation, a positive sign for implementation. The status of the recommendation remains open, with the GAO to provide updated information when it confirms what actions the agency has taken. The ball is now in DOD's court to translate agreement into actual changes to its communications with providers.

The Political Stakes

Military families depend on the DOD fee assistance program to access affordable child care, particularly in areas where options are limited. When providers are terminated from the program without clear communication about why or how to appeal, families lose access to the care they've come to rely on. For service members already managing the stresses of military life, child care disruptions can affect their ability to perform their duties and remain in the military.

The report underscores a broader tension in federal child care policy: how to maintain program quality and compliance while remaining flexible enough to serve military families in diverse locations with varying provider availability. DOD's expansion of the program reflects a recognition that child care is a retention tool. But that expansion has created a system where compliance problems are widespread, and providers lack clarity about how they're being evaluated and what rights they have when facing discipline.

The Bottom Line

The path is straightforward. DOD must communicate clearly with providers about their rights and options. Whether the agency follows through on its agreement with the GAO will signal whether it's serious about maintaining both program integrity and fairness to the providers who serve military families.

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