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The American Rescue Act of 2021 provided nearly $24 billion for the Child Care Stabilization Program, which helped keep 200,000 child care providers afloat during the pandemic. The funds were used by child care providers to maintain or increase staffing, raise wages with inflation, and expand employee benefits, as well as to cover rent, mortgage payments or other debts—keeping the increased costs of childcare off of working parents.
Unfortunately, this program is set to expire on Sep. 30th, 2023. As childcare centers–many based on churches–scramble to cover the increased business costs and parents find themselves unable to afford childcare, about 70,000 child care programs (a third of those receiving federal stabilization funding) will likely close.
This would leave about 3.2 million American children currently being cared for by those centers with no place to go. Not only would this place a huge strain on parents and marriages, but it leaves children without optimal care during the early period in their development where quality care matters most.
This is bad news for working parents and their children—and the American economy as a whole.
Fewer childcare spots means increased childcare costs across the board. Daycare centers will be forced to reduce services and care for our next generation. And even parents who can afford to move their child to another daycare will face major obstacles procuring a spot.
In Durham, North Carolina, an investigator called 9 different daycares to estimate wait list times. Each had a waitlist for infant programs, and most lists were more than a year. The shortest waitlist was six months, and the longest was 15 months. One daycare said 50 babies were waiting for spots.
Without reliable childcare, more working parents will have to leave their job to care for their children.
Fortunately, the Child Care Stabilization Act has been introduced in both the House and Senate to avoid this fallout. The bill is being championed by pro-family church groups, parents, and business leaders. It would provide $16 billion in mandatory funding each year for the next five years to continue the successful Child Care Stabilization Grant program.
This investment would ensure child care providers continue to receive a stable and reliable source of funding to help them deliver high-quality and affordable child care for working families across the country.
Learn more about other key issues affecting working parents and children, and how communities across America are coming together to ensure American children are given the best opportunity to achieve their God-given potential.