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Oregon

ERDC in 2026: the budget gap, the June rule changes, and ELMS on October 14

A $93–111 million budget gap, new rules on absences and rates, and a new billing and licensing system going live in October. What Oregon directors who serve ERDC families need to do now.

Employment Related Day Care (ERDC) is Oregon's child care subsidy for working families. It's run by the Department of Early Learning and Care (DELC), and for many centers it's a large share of revenue. 2026 brought a budget squeeze, new rules, and on October 14 a new system for billing and licensing. Here's what directors need to know.

The budget problem

ERDC has had a waitlist since November 2023. Families can skip it if they receive TANF or TA-DVS, are referred by Child Welfare, or reapply within two months of their benefits ending.1

In November 2025, DELC told the Legislature's Ways and Means committee that ERDC had a structural deficit of $93 million to $111 million for the 2025–2027 budget period. DELC said eligibility had been expanded over several budget cycles without a matching increase in funding. It also warned that unless the waitlist exemptions were turned off for a while, ERDC would run out of money to pay for approved families as of January 2027.2

The 2026 session responded in two ways:

As of September 16, DELC's ERDC page still lists the exemptions above.1 If you enroll ERDC families, watch DELC's notices for any change. Closing exemptions could slow new ERDC enrollments.

Rules that took effect June 1, 2026

DELC changed eight ERDC rules and repealed one COVID-era rule. The changes that affect centers most:4

As of March 1, 2026, families qualify at up to 200% of the federal poverty level and can stay in the program up to the higher of 250% of the poverty level or 85% of state median income. Family copays still can't exceed 7% of monthly income, even though a new federal rule no longer requires states to keep that cap.1 We explain the federal change in The federal subsidy rules changed on July 13.

Oregon ELMS launches October 14

DELC's new Early Learning Management System (ELMS) brings licensing and ERDC tools into one system. It launches October 14, 2026.5

Don't let a code sit in someone's inbox

Your registration code, the codes for staff in the Central Background Registry, and the codes your ERDC families receive are separate letters. It's worth asking your ERDC families whether theirs arrived.

What's coming next

These are proposed or temporary rules. Final versions may differ.4

Expulsion prevention rules for certified centers already took effect September 1. See Oregon's new suspension and expulsion rules.

Checklist before October 14

  • Find your center's ELMS registration letter or email and register.
  • Remind staff in the Central Background Registry to watch for their own codes.
  • Tell ERDC families to expect a code from DELC and to register.
  • Check ERDC enrollment records: withdraw children who have left, since payments end after a month of absence anyway.
  • If you're hiring for January, start background checks early.

Whatever system you bill through, subsidy payments rest on attendance. RoundUp records check-in and check-out times as they happen; see Subsidy and ERDC.

Sources

  1. Oregon Department of Early Learning and Care. Employment Related Day Care (ERDC).
  2. Oregon Department of Early Learning and Care. Memo to the Joint Committee on Ways and Means: DELC 2025–2027 Agency Reduction Options, November 3, 2025.
  3. DELC News. April 2026 Community Newsletter, March 31, 2026.
  4. Oregon Department of Early Learning and Care. Rulemaking (ERDC effective June 1, 2026; ERDC proposed January 1, 2027; Central Background Registry proposed January 1, 2027; General Rules temporary rules effective April 23, 2026; Closure/Inactive Status proposed September 24, 2026).
  5. DELC News. Oregon ELMS project update and what's up next, August 28, 2026.

Sources last read September 16, 2026. Confirm billing questions with DELC.

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