Nebraska Faces Worsening Child Care Crisis Amid Medicaid Cuts

Shortage of child care workers expected to worsen as federal Medicaid spending declines.

Published on Mar. 8, 2026

Nebraska has seen a 30% decline in child care workers since 2019, and the shortage is expected to worsen in the coming years as federal cuts to Medicaid spending trickle down to the state. This crisis is impacting families like Malissie Plugge's, who had found the perfect in-home day care for her daughters Margo and Violet in Omaha.

Why it matters

Access to affordable and quality child care is critical for working families, but Nebraska's child care crisis threatens to leave many parents without options. The looming Medicaid cuts will further strain the already overburdened child care system, potentially forcing more providers to close their doors.

The details

Nebraska has seen a 30% decline in child care workers since 2019, as the industry has struggled with low wages, high turnover, and the impacts of the COVID-19 pandemic. This shortage is expected to worsen in the coming years as federal cuts to Medicaid spending trickle down to the state, reducing funding for child care subsidies and support for providers.

  • Nebraska has seen a 30% decline in child care workers since 2019.
  • Federal cuts to Medicaid spending are expected to further strain the child care system in the coming years.

The players

Malissie Plugge

A parent in Omaha, Nebraska who had found the perfect in-home day care for her daughters Margo and Violet.

Got photos? Submit your photos here. ›

What’s next

State and local officials are working to address the child care crisis, including exploring ways to increase funding and support for providers. However, the looming Medicaid cuts threaten to further exacerbate the problem.

The takeaway

Nebraska's child care crisis is a complex issue with far-reaching consequences for families and the state's economy. Addressing the shortage of child care workers and the impact of Medicaid cuts will require a multi-pronged approach from policymakers, providers, and the community.