Policies > Renewing America > Section 2

Addressing the Childcare Crisis

With more than 12 million children under the age of 5 in some form of child care across the country, and around 1.5 million Americans directly employed in the child care profession, child care is essential to America’s economy and future prosperity. The impact of high-quality programs is profound: quality early childhood education can close the achievement gap in kindergarten and beyond, while boosting future earnings and decreasing the likelihood of involvement with the criminal justice system.

Our country’s child care crisis predates the pandemic. According to research from the Center for American Progress in 2019, more than half of the U.S. population was living in a “child care desert” -- a Census tract with more than three children under age 5 for every licensed child care slot. Average tuition for two children was nearly $20,000 per year. In nearly every region child care represents families’ biggest household expenditure.

Currently, federal assistance only reaches fewer than 1 in 10 eligible children in 43 states, and payment rates don’t match with the cost of high-quality care, leaving a gap of at least $7,000 a year in every state. The CARES Act included a significant investment in the child care sector, but more long-term aid is needed. Funding and policy changes at the state and local levels have a critical role to play, and leaders must emphasize the importance of child care access in reopening the economy while coordinating solutions that bridge gaps. States must also maximize the impact of federal investments by making structural changes that better support parents and providers alike.

Rebuilding a New Normal: Key Principles and Policy Goals

  • Change Child Care

    Reframe child care as a community and economic issue, and a public good rather than a service that should be controlled by the market.

  • Prioritize Younger Children

    Prioritize resources for children 3 and under -- historically, preschools have received a lot of investment, leaving licensed child care slots for younger children even more scarce.

  • Collect Data on Child Care Availability

    Begin collecting state- and city-level data on child care availability, costs, and other metrics, or improve data collection to make it more easily reportable.

  • Partner with Agencies

    Partner with Child Care Resource and Referral Agencies and other organizations to bridge gaps, connect families with care, and more efficiently distribute state grant money and other funds.

  • Improve Options for Government Employees

    Set an example by improving child care options or support for government employees

  • Support Providers and Workforce

    Support providers and the child care workforce directly, with assistance reopening during the pandemic and improving quality of care while keeping costs affordable

  • Federal Support

    Supplement federal support for families with targeted funding

  • Accessible High-Quality Providers

    Make high-quality providers more accessible for low-income children, and incentivize providers with many low-income children to improve quality

  • Flexibility with Federal Programs

    State governments should use flexibility around federal program payouts to improve how they reach parents and providers

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