Daycare centers across South Carolina are losing children and laying off workers as federal childcare scholarship funding dries up, forcing some families to pull their children from care they can no longer afford.
South Carolina Department of Social Services paused scholarships in December 2025 to help people pay for childcare.
Parents are now pulling their kids out when the scholarships expire.
Daycares, including Precious One's Development Center in Rock Hill, are struggling to stay open.
"It causes a problem with the centers, because they won't stay," said owner Barbara Robinson. "We started out with 38 children, now down to 15. Because those that are on a voucher, they're leaving because they can no longer afford daycare."
It's impacted her business in a major way.
"The phone has just stopped ringing. It's silence," she said.
South Carolina DSS released a FAQ sheet.
DSS is making changes to cut down on spending now that it's the post-pandemic period and COVID funding has ended.
Some families are still eligible for the funding, including those getting food assistance, experiencing homelessness, or if they have a child with a special need.
Channel 9 reached out to North Carolina's childcare officials too, and we're waiting to hear if anything has changed.