Overview

• Federal child care funding from the American Rescue Plan is expiring, jeopardizing over 70,000 child care centers and 3.2 million spots.
• Without subsidies, child care costs will rise, forcing working parents (especially women) to quit jobs or reduce hours.
• Closures and job losses could cost states billions in lost economic activity and earnings.
• The pandemic exacerbated existing problems like low wages and limited affordability in the child care sector.
• Lawmakers disagree on renewed investments, despite bipartisan support for affordable child care.