The 25 educators operating under Wagga's Regional Family Day Care scheme were told by council last week they would need to find other schemes to move under.

Council will no longer provide licences for their services from the end of June, a "difficult decision" which was made after a review conducted before COVID-19 found the Wagga FDC scheme was no longer financially viable.

Parents and educators received the distressing news in the same email, sent on May 12 and seen by The Daily Advertiser.

The email said council staff would "be notifying other regional licensee services to support any educator transfer of registrations".

Council suggested educators could be registered under schemes in Junee, Hume Billabong or Albury, while continuing to provide care for families in Wagga.

Wagga's Yvonne McAlister, who has been an FDC educator for 20 years, said she had "started narrowing down" her options.

Ms McAlister was one of a small group of educators who met on the weekend to discuss their options.

"Some have decided where they might want to go. Others are still thinking about it," she said.

Wagga educators, she said, would be meeting with representatives from several FDC schemes across the state this week to discuss the viability of moving.

"We've also been approaching educators who work in the services to get a feel for what it's like working for them as an educator, what it would be like to change over," she said.

"It's such an overload. We've got services sending us their policies and procedures which we've got to read over.

"We also have to then go back and sort of talk to our families, as well, in care. It's not just about us, it's about them."

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Council general manager Peter Thompson said all educators were supported by Wagga's FDC coordination unit staff.

Mr Thompson said the Junee, Hume Billabong and Albury FDC schemes were not consulted before being recommended to educators because Wagga council's decision was considered "on a confidential basis".

Current reports, Mr Thompson said, indicated that half of Wagga's educators had "commenced administration processes to transfer their businesses to another licensee", while others were "weighing up" their options.

Mr Thompson said there were places for all 25 of the educators with "a range of other service providers".

"The educators are making their choices that suit their business," he said.