At the end of September 2023, the American Rescue Plan— a vital lifeline for millions of families across the nation– expired, leaving the childcare industry and many others in a period of extreme uncertainty. For both parents and daycare providers, this $24 billion federal funding effort had served as a glimmer of optimism. According to a study done by the Century Foundation, a progressive research organization, the plan, which was created during the pandemic, helped keep over 70,000 daycare centers open. It increased compensation for many employees and assisted in easing some payment obligations for struggling families. Yet, now that the American Rescue Plan’s funds have dried up, the nation may be on the verge of a crisis.
Around 3.2 million children will be left without care as more than 33 percent of daycare programs face closure, according to a Century Foundation report. Many parents will consequently be faced with the difficult decision of either seeking new child care or quitting their jobs to care for their children. However, not all populations will be equally affected by the closures. “Child care deserts,” or places with limited access to child care, are more likely to be home to impoverished families and racial minorities. Therefore, the closing of even a single site can have a more significant impact on their lives than on those who have more widespread access to child care.
Since the pandemic, the childcare industry has been on the verge of collapse due to the forced, abrupt closures of daycares across the nation. One in ten childcare institutions (or about 20,000) were permanently shut down in just the first two years of the pandemic. “[It] laid bare and exacerbated what was already a tenuous situation in child care,” claimed Melissa Boteach, the National Women’s Law Center’s vice president for income security and child care.
The timing of the funds drying up could not be worse. The U.S. economy has been weakened following a period of rapid expansion after the pandemic. Over the past year, childcare costs increased by 6%, and are anticipated to rise even further as demand grows in the months to come. “It isn’t just individual children or parents that will be impacted, it’s the economy as a whole,” Julie Kashen, a senior fellow at the Century Foundation, said. The crisis has the potential to cost the U.S. economy over $10.6 billion.
So, how is the nation addressing this issue? The government and small organizations are beginning to step up to the cause. In an effort to reduce the astronomical costs of daycare, Ro Khanna, a Democratic representative for California, and Nancy Mace, a Republican representative for South Carolina, established the Congressional Bipartisan Affordable Childcare Caucus in June. Additionally, Democrats in Congress this year are pushing for a $16 billion increase in emergency childcare funding. Nevertheless, given the precarious state of the U.S. government, it seems unlikely that these initiatives will succeed until order is established. However, a new, smaller initiative called #ShowUsYourChildCare was launched by Moms First and theSkimm with the hope of encouraging companies to support their employees and be transparent about their childcare practices.
America is at a crucial turning point in the childcare industry. Now is the time to take action. We must step up to the cause and develop quality, affordable child care to support the young families of today and of the future. You can help be a part of the fight for affordable and high-quality child care by donating to the #ShowUsYourChildCare initiative using the following link: https://www.classy.org/give/495805/#!/donation/checkout.
