The childcare crisis is about to get worse with 3.2 million kids set to lose care this fall
- A report highlights just how much worse the childcare crisis may get after ARPA stabilization funds end.
- 3.2 million children could lose a childcare spot, per the analysis from The Century Foundation.
The childcare crisis is about to get even worse once pandemic-era federal stabilization funds end. Texas and New York could potentially see the largest number of kids lose spots in programs.
That's based on a new report from the think tank The Century Foundation. The report highlighted what the end of the American Rescue Plan Act, or ARPA, stabilization funds at the end of September means for families and childcare programs across the US. The Century Foundation found that about 3.2 million kids in the US may lose a childcare spot when these funds end, although the projected losses might not happen all at once. According to the new analysis, over 70,000 programs could close, which the report states is "one-third of those supported by American Rescue Plan stabilization funding."
"The ARPA stabilization funds that staved off the child care sector's collapse will come to an abrupt end in September 2023," the report stated. "When these resources swiftly and suddenly disappear, this funding cliff will once again place the sector in danger, as it will be forced to contract, shedding caregivers and care slots in a cascade that will not only upend millions of families' child care arrangements but also hurt regional economies."
Congress had been working on longer-term funding for childcare as part of their negotiations around a broad spending package known as Build Back Better. However provisions for universal pre-K and affordable childcare were cut from the eventual Inflation Reduction Act, per previous reporting from Insider. The new report stated that "the nation now faces a devastating child care cliff" after legislation that included increasing childcare opportunities didn't pass the Senate.
While the end of the funds could mean millions of children will lose out on childcare overall, the think tank also looked at how this looks at the state level and for Washington, DC. You can hover over the map below for the projected number of childcare-program closures and the projected number of children who may lose a childcare spot.
Texas could see the largest number of kids losing a childcare spot, with over 300,000 projected. However, it's important to note that these losses might not happen all at once, as a spokesperson for The Century Foundation noted that childcare programs will try to hold on as long as they can by doing things like reducing staff and increasing tuition.
The report from The Century Foundation noted that even if the over 70,000 projected childcare programs closures because of the end of the stabilization funds don't happen, "the losses to children will occur as a result of higher tuition that parents won't be able to afford and fewer openings as a result of staffing shortages."
The closures across the country could make it hard for households to find needed childcare support. Morning Consult survey results from June for The Century Foundation show over half of parents "who regularly pay" for care believe that it can take more than a month "to find a suitable child care alternative if current child care suddenly became unavailable," a post from The Century Foundation about these results said.
And while The Century Foundation report notes that "many states have taken proactive measures" to help out the industry, Americans are concerned.
"Nearly two-thirds of adults express concern about the upcoming expiration of pandemic-era funding for child care providers, and most believe the federal government should be investing more into child care than it currently does," stated a post from The Century Foundation referring to the Morning Consult survey results.