HENDERSON (KTNV) — A childcare center, The Magic of Learning, in Henderson reached out to Channel 13 to sound the alarm about changes to childcare funding.
This is leaving many parents worried about how they'll care for their kids.
“I would hate for my kids to have to leave," said Elizabeth Callen, who is utilizing the Urban League program.
“You know we’re a two income family and we still can’t afford child care," said Brttne Brady, a mother of five.
I spoke with nine separate families who all have children attending The Magic of Learning in Henderson. It's listed as a Children's Discovery Center, located at the corner of East Horizon Drive and College Drive next to the McDonald's.
The center offers preschool, daycare and other services for kids of all ages.
These parents have their children at this center thanks to subsidies form the Las Vegas Urban League.
“I have had Urban League for the past maybe year now, and it has helped tremendously," said Keona McCain, who has benefited from the program.
The Las Vegas Urban League is a nonprofit offering several services, including Early Childhood Connection (ECC) which covers up to 100% of childcare costs for families depending on their incomes.
They are one of two nonprofits offering this service in Nevada, specifically for families here in the south.
In October 2024, COVID-19 funding ran out, causing the childcare subsidy program to change. The income threshold to qualify dropped by half.
“So now I’m trying to figure out a plan," said Sharon Rivera, who was denied Urban League assistance.
▶ Watch Changes are coming to Nevada's child care assistance program: Here's how it could affect your family
Before funding ran out, families could make 85% of the average median income which was at $6,327.19 per month for a family of four.
Now with the changes made, new families can only make up to 41% of the median income and families renewing their benefits can make up to 49% the average median income.
That means a new family of four can only make $3,280.89 per month and a family renewing for this assistance can only make $3,921.06 per month.
This has left several families denied, who now have to pick up the tab themselves. Sharon Rivera's family with three children didn't qualify.
“I have to either leave work and become a stay-at-home mom or get a remote job. It’s been so hard for me right now," said Rivera. “I’ve been paying $575 every week for childcare, maxing out my credit card.”
The childcare center reached out to Channel 13 about the changes in program qualifications and the loss of Urban League money.
Owner Thomas Kelly and his wife Tess both told me it doesn't just impact parents and their children, but also the childcare centers.
“It’s impossible for us to actually run a business because we have no idea when we’re actually going to get paid," Kelly said.
He says not only is his center dealing with the reduction in the number of families with subsidy, but he claims the Urban League is also behind several months on payments.
He told me he just received a payment in January for the months of September, October and November.
Kelly even says he had to contact the City of Henderson, the Governor's Office and several state services over the Urban League to get some of his payments in the past.
According to email communication between The Magic of Learning and Urban League the email states, "Reimbursements take up to 30 business days. This does not include the weekends or holidays."
He says that hasn't been the case.
Childcare centers like The Magic of Learning receive payment for each child they care for that is a part of the Urban League. While showing me their payment documents, they receive around $800, $1,000, $1,300 and other amounts depending on the age of the child cared for — with infants costing the most due to the resources needed to care for them.
The center first has to front the cost for the services, then are reimbursed by the Urban League.
With a lack of payments, that has forced Kelly and other daycare owners to foot the bill.
“Every month I have my wife come to me in tears saying can we cut another check," Kelly said.
I reached out to the Urban League to understand what might have happened.
They sent me a statement acknowledging delayed payments do occur, offering these reasons as to why.
From system issues to late timesheet submissions and even delayed payments from the state to the nonprofit.
I also reached out to the state Division of Welfare and Supportive Services for more answers and to find out what is happening to the money chain.
The division has not answered my questions as of Monday.
Kelly says they have never been late in submitting timesheets and doesn't understand why this is happening. He claims he has contacted state lawmakers and even the state services in charge of the Urban League and have heard differing stories as to how much money is available and why it has been delayed.
He wants answers not just to help his own center, but to help everyone else who may face the same issues.
Kelly says the Urban league has remedied some of the past due dollars owed, but they're still not caught up and haven't been paid for December.
While he says his daycare can weather the storm, other owners told him they're struggling.
“He had to take money out of his retirement account so he could fund the payroll and another owner I talked to said 'hey Tom, I had to take a personal loan out last year just to keep the doors open,'" Kelly said.
The Urban League told me starting next fiscal year, July 1, the nonprofit will no longer be receiving a state grant to run ECC — instead a new pilot program run by the state will take its place.
Parents told me they hope the new program will cover more costs.
“Really they need to get their stuff together and are able to fund the school like they’re supposed to," said Jamie Treat, who is pregnant and a mother of four kids.
As the new state program is implemented, we will be monitoring how it impacts childcare centers across our valley.









