“According to government officials in Washington, DC, arrangements like this are violations of the law. They are cracking down on what they call an illegal ‘child development facility’ operating without a license.” - Intellectual Takeout
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The District of Columbia has some very extensive requirements for daycares, infamously including at least a proposal that daycare workers be required to get a college degree to work daycare. Since regulatory compliance is not free, that means a lot of families are indeed “finding a way around it” by doing things like this. The District is rightly infamous for taking regulatory steps which have nothing to do with safety—one example being a rather onerous regulation of homeschooling that simply ignores the fact that the supposed “reason” for regulation was that their own “state” social services department blew off a very real need to investigate a family where the mother eventually killed her children.
Aspiring to be a stick in the mud.