Legislation introduced in both chambers on Wednesday would provide $16 billion a year over the next five years, awarded as grants to help child care programs cover everyday costs. It’s meant to replace $24 billion in relief that was passed in 2021 in the American Rescue Plan and is set to expire Sept. 30.Without a new lifeline, child care programs serving millions of families could close or increase prices.
Hoping to buffer the industry against the upheaval of the pandemic, Congress created a child care stabilization program in 2021. States were given a total of $24 billion to distribute to local programs. It helped more than 220,000 programs, often being used to pay staff or cover rent and utilities, according to the Department of Health and Human Services.
Still, inflation and safety costs have taken a toll. Davis had to lay off one worker, leaving her with just one other. Without more relief, she figures her center will close within a year. But even before then, the industry was struggling. The number of providers has been on the decline for years as workers fled the industry and its persistently low pay. Yet demand has remained high, pushing programs to raise prices and, in some places, resulting in child care “deserts” where demand far exceeds available spots.