During the pandemic, the American Rescue Plan Act provided $52 billion in federal funding to enable parents to return to work, boosting our economy. It has also helped more than 80% of child care providers stay open and, in many cases, Temporarily increase workers’ wages No need to raise prices for parents. Family child care programs — which typically provide care for infants and young children as well as children whose families work after-hours, nights or even weekends — have been able to use the funds to pay their rent or mortgage payments, which are often their largest operations expenses, as well as paying their employees. While these subsidies have delivered real economic benefits to the childcare industry and beyond, they are set to expire at the end of September.
This may create more catastrophic crisis Putting more pressure on families and educators than we faced pre-pandemic.In fact, as many as 3.2 million children Child care spaces could be lost, and tens of thousands of programs across the country could close.
Child care providers are the invisible backbone of the American economy. Take Shanette Linton, a licensed in-home child care educator in the Bronx who runs a popular program out of her apartment. She is one of the few people in her community who accepts babies in addition to toddlers. Currently, there are three babies waiting for an available spot, including one who is not yet born. Despite the obvious demand, her business is almost breaking even.
It shouldn’t be like this. Skilled and dedicated, Shanette is passionate about the importance of early childhood education, especially for children with learning delays or disabilities. She would look after babies and young children until 6 p.m., then clean her home and shop for bargains between several stores to make sure she had the food and supplies she needed. When she goes to bed at night, she plans activities for the children in her care before falling asleep.
In a never-ending job, Shanette’s only savior was federal funding, which allowed her to pay her assistants and serve more babies.
Impacts could be particularly severe in Arkansas, Montana, Utah, Virginia, West Virginia and Washington, D.C. Estimates suggest at least half of licensed child care programs could close. An additional 14 states could see their options for licensed child care programs reduced by a third.
The impact this has on our nation’s economy cannot be overstated. Lost tax and business revenue from project closures could cost states $10.6 billion in annual economic activity.Without care options, millions of parents may leave the workforce or reduce their hours to take on childcare responsibilities Costs households $9 billion in lost income annually.
2022, United States poverty rate soared, with child poverty more than doubling. The alarming jump has been exacerbated by the expiration of federal programs that have supported low-income families during the pandemic, such as an expansion of the child tax credit and increased rental assistance. The loss of child care resources will be devastating to families. For most people, this is probably their largest single cost. Without it, they cannot participate fully in the labor market.
In short, there is no wiggle room for parents or educators: every dollar can make or break them. Maria Amado, the National Family Child Care Association’s 2023 Certified Provider of the Year, knows this. To stay afloat amid rising utility costs and rising inflation, she would need to increase rates for the families of the children she cares for – from $280 a week to $320 a week. While her job is as flexible as possible, this has caused some families to leave her program in Hartford, Connecticut because of the cost. As the child care stabilization funds she receives come to an end, Maria worries about how to afford materials, pay staff and ultimately keep the doors open. This bleak outlook is about to become commonplace across the country.
During the pandemic, our leaders in Washington have united in efforts to make the child care sector sustainable, including allocating funds through the American Rescue Plan Act. Now, they’ve withdrawn that support, but the underlying problem hasn’t changed. The end of federal funding has left our educators feeling like they no longer matter—that they and the families they care for are being abandoned. some states Bravely step in to help, but without federal support they can only do so much.
The childcare industry has been decimated over the past three years, but it has avoided collapse, thanks in large part to critical support and funding related to the pandemic response.Our elected officials and representatives must urgently act and allocate At least $16 billion per year Protect America’s most valuable asset: the well-being of our children. Families and the people who care for them, like Shanette and Maria, are the ones who keep our economy going.
Jessica Sager is CEO and co-founder all our relativesis a national nonprofit organization dedicated to training, supporting and sustaining family child care educators.
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