Child Care

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Average cost of child care hit $10,600 in 2021

New data shows how deeply families have struggled to stay afloat while working and paying for child care, and how in many cases they've been forced to quit jobs to stay home with a kid — especially if they are Latino, Black or live in poverty.

https://www.axios.com/2023/06/15/child-care-daycare-costs-states-parents?

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Child care rises at twice inflation rate

Illustration: Natalie Peeples/Axios

The national average price of daycare and preschool services rose 6% last month from a year before — nearly double the overall inflation rate of 3.2%, the Wall Street Journal reports (subscription). 🔮 What's next: "Parents could see their child-care bills climb higher this fall as providers boost tuition to cover rising costs and federal pandemic aid ceases," the Journal notes.

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Child care cliff

Illustration: Sarah Grillo/Axios

In 10 days, the U.S. will fall off a "child care cliff." That's when pandemic-era funding for the industry runs out, Axios Markets co-author Emily Peck writes. As many as 70,000 centers, looking after 3.2 million children, may close after the funding runs out, according to a widely cited estimate from The Century Foundation. Why it matters: The cliff is approaching just as women, particularly mothers, are hitting their stride in the labor market. Workforce participation is at new highs for working mothers, and the employment gap between men and women is at record lows. 🔎 Zoom in: If the dire forecasts prove true, millions of parents — particularly mothers — are going to be left with some hard choices. Their child care provider could shut down or raise prices past affordable levels. Many parents could exit the job market entirely. 🔮 What's next: When the bandage comes off, the state of child care in the U.S. is likely to be even worse than it was before 2020. Keep reading.

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As child poverty doubles, states launch or expand their own tax credits

The pandemic-era enhanced federal credit that lifted millions out of poverty expired in 2021

https://floridaphoenix.com/2023/09/23/as-child-poverty-doubles-states-launch-or-expand-their-own-tax-credits/?

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States are trying to prop up the child care industry. It isn’t enough

State efforts to prop up child care might spare some providers from the worst effects of last month’s expiration of pandemic-related aid — at least temporarily. But the unraveling of a system plagued by a lack of affordability and access, low wages, staffing turnover and burnout will continue, experts say.

https://floridaphoenix.com/2023/10/10/states-are-trying-to-prop-up-the-child-care-industry-it-isnt-enough/?

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Florida families, child care providers vulnerable with loss of federal money

Jasmine Brown, an Ocala mother of four, has been on waitlists at some local daycare centers for almost two years. Unable to find a program she can afford that could enroll her 1- and 3-year-old sons together, she’s split them between two different centers this year.

https://www.orlandosentinel.com/2023/10/12/florida-families-child-care-providers-vulnerable-with-loss-of-federal-money/?

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💰 Charted: Child-care cost surge

Data: Internal Bank of America data, Bank of America Institute. Chart: Axios Visuals Parents' average child-care payment is up 32% from 2019, Axios' Emily Peck writes from new Bank of America Institute data. Why it matters: The report found that cost increases might be driving some parents out of the workforce to look after their children. 🧮 The price surge outpaced overall inflation: The Consumer Price Index was up 20% over the same period. The average family with child-care costs spent more than $700 on it during September. How it works: The report looked at anonymized data from 68 million Bank of America accounts, and analyzed those where customers paid for child care. Explore the data ...

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Utah Bills Itself as “Family-Friendly” Even as Lawmakers Have Long Neglected Child Care

Federal relief had improved access to child care. But when funding expired, the state rejected proposals to replace it. Some advocates say the historical influence of the LDS church has added to the resistance.

https://www.propublica.org/article/utah-lawmakers-child-care-funding?

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America’s child care crisis is holding back moms without college degrees The limited availability and high costs of quality child care are holding back American moms without college degrees. Women’s participation in the workforce has recovered from the pandemic, reaching historic highs in December. But that masks a lingering employment crisis among moms who lack a college degree. Read more.

Why this matters: The dilemma is common in the United States. In 2022, more than 1 in 10 young children had a parent who had to quit, turn down or drastically change a job in the previous year because of child care problems. And that burden falls most on mothers, who shoulder more child-rearing responsibilities and are far more likely to leave a job to care for kids.   The gap in employment rates between mothers who have a four-year degree and those who don’t has only grown. In interviews, mothers across the country shared how the seemingly endless search for child care, and its expense, left them feeling defeated. It pushed them off career tracks, robbed them of a sense of purpose, and put them in financial distress.

RELATED COVERAGE ➤ These cities raised taxes — for child care. Parents say the free day care ‘changed my life’   California is rolling out free preschool. That hasn’t solved challenges around child care   New Mexico ranks last when it comes to education. Will a mandatory 180 days in the classroom help?