Over the course of the pandemic, $52 billion in federal funding from the American Rescue Plan Act has allowed parents to go back to work, fueling our economy. It has also helped more than 80% of childcare providers keep their doors open and, in many cases, temporarily raise wages for workers without having to raise prices for parents. Family childcare programs–which often provide care for infants and toddlers, and for children whose families work odd hours, nights, or even weekends–have been able to use these funds to cover their rent or mortgage payments, typically their largest operating expense, and to pay their staff. Despite the tangible economic benefits these subsidies have had on the child care sector and beyond, they are set to expire at the end of September.
This is likely to create an even more catastrophic crisis than the one we faced pre-pandemic and put further strain on families and educators. In fact, as many as 3.2 million children could lose their childcare spots, and tens of thousands of programs could close nationwide.
