As federal funding from President Biden’s American Rescue Plan is set to expire this Saturday, families across the country are preparing for the end of pandemic-era programs that have made child care more affordable. The impact of high child care costs on families is a growing concern, as many rely on these programs to make child care accessible. The approaching end of the American Rescue Plan funding could potentially affect the care of over 3 million children, with an estimated 70,000 child care programs at risk of closing.
According to the Century Foundation, the loss of these programs will not only disrupt child care services but also have significant economic consequences. It is projected that the closure of one-third of the child care programs supported by the American Rescue Plan funding will result in the loss of approximately 3.2 million child care spots. Additionally, states are expected to face a loss of $10.6 billion in economic activity per year due to the decline in tax and business revenue.
The child care industry, already struggling before the pandemic, is now in an even more precarious position. The sector remains understaffed and unaffordable for many families, making it difficult for them to access quality child care services. Josephine Kalipeni, the Executive Director of Family Values at Work, expressed concern over the potential crisis families will face if Congress fails to act and extend the funding.
The cost of child care has reached a critical point, with approximately 28 states reporting that child care has become more expensive for families than college tuition. The Century Foundation warns that without the stabilization funds provided by the American Rescue Plan, child care resources will be severely limited. This will exacerbate the pre-existing staffing shortage in the industry, leading to higher prices for families or even the closure of child care businesses.
The impact of the end of child care funding is a pressing issue that demands attention and action. Families across the country are anxiously awaiting a resolution from Congress to prevent a child care crisis. Without continued financial support, the accessibility and affordability of child care will be further compromised, affecting millions of children and their families.
