Billions in federal child care relief just expired. Costs are already skyrocketing.
Without the aid, early-childhood education providers are struggling to contain expenses and retain workers. Many centers could close.
Overall, researchers for the foundation predicted 70,000 programs could shutter, with 3.2 million children losing spots. Large, corporate child care networks may not see significant effects, but echoing trends that predated the pandemic, the most vulnerable programs are those run out of homes, as well as those who serve infants and toddlers.
Some states, from Alaska to Vermont, have set aside funding to stave off the cliff. In Minneapolis, the state Legislature approved more than $1 billion, including hundreds of millions doled out over the next four years, to continue the improved pay and benefits that were available with the federal relief dollars.
In Wisconsin, after Republicans repeatedly rejected Gov. Tony Evers’ proposals to continue a federally funded pandemic-era child care program with state dollars, the Democratic governor announced a smaller package of “emergency funding” last week. The money will cover the program through summer 2025.
At least 18 states, according to a Child Care Aware analysis, have increased spending on child care this year. But these budget increases were often after yearslong fights – and even then, the allocations have been scant in comparison to the federal relief, which in some cases began drying up months ago.
“The funding that’s required is too significant for states to try to do this alone,” said Rachel Wilensky of the Center For Law and Social Policy, a nonpartisan, nonprofit organization advancing policy solutions for low-income people.
Providers across the country told USA TODAY they’re quickly finding it more difficult to stay open, which threatens to turn more communities into child care "deserts." They either can’t find staff, can’t fill seats or can’t keep up with bills. Often it’s a combination of all three.