About 900 Utah families will lose their childcare subsidies when new income limits take effect Oct. 1. Another 63% of all families in the program could see their benefits reduced.

The Utah Department of Workforce Services announced the changes after a $22 million cut in federal funding for the state's Child Care Assistance Program (CCAP), FOX 13 News Utah reported. Utah's childcare subsidy program is funded almost entirely with federal dollars. The state contributes less than 1% of the program's total budget, according to the advocacy group Voices for Utah Children.

The income limits dropped sharply. Families applying for the first time must earn below 50% of Utah's median household income to qualify. Returning families must earn below 65%. The previous cutoff was 85%.

For Sandy families already stretched thin, the timing stings. The median single-family home sale price in Sandy reached $720,000 in the second quarter of 2026, according to the Salt Lake Board of Realtors. No Sandy-specific data on affected families is available, but the eligibility changes apply to every Utah household receiving CCAP benefits.

Heather Thomas, division director of the Office of Child Care, told KSL in late August that the new thresholds return the program to pre-pandemic eligibility levels. Speaking to FOX 13 on Sept. 10, Thomas said the agency is doing its best to protect families with the highest need and called the situation "really difficult" for families and providers alike.

The 900 families losing eligibility will not all be cut off at once. Changes take effect at each family's next annual review, and the state is notifying affected households, according to KUTV.

Other changes compound the impact. Families with children in part-time programs of four days a week or fewer will receive less money each month. The state is also capping the registration fees it pays to childcare providers and cutting off assistance if a parent loses a job and does not find a new one within three months.

At a Sept. 10 meeting of the Office of Child Care's Advisory Committee Board, parents, providers and advocates packed the room and logged on online to voice concerns. Melea Rogers, owner of Kids Zone Preschool and Daycare in Ogden, told the board that about 85% of the children in her program rely on state assistance.

"We need to stop putting the biggest burden on the littlest people," Rogers said at the meeting.

Christina Robles, owner of Brighter Steps Childcare and founder of the Utah Community Coalition for Childcare, met with a representative from Gov. Spencer Cox's office about the cuts in late August, KSL reported. Gov. Cox's office has not publicly responded to the cuts as of Sept. 10. Childcare providers have also launched a petition asking state leaders to find alternative funding.

Families who want to check their eligibility or apply for CCAP can do so through the Office of Child Care website, by phone at 1-866-435-7414, or at a local Department of Workforce Services employment center.