Infant Child Care Cost

Infant Child Care Cost in United States

United States

The price of child care can be staggering, with the annual price of infant care surpassing the cost of rent or mortgage payments in most regions of the United States. Center-based child care comes in many forms, such as day nurseries, nursery schools and preschools, all of which are integral to raising children in the United States. Child care ? both formal and informal (with the help of family, friends or neighbors) ? allows parents to work and contribute to the economy. 

A study of working parents found that inadequate child care had serious negative effects on work performance and career opportunities. Roughly 25% of these working parents had to either reduce work hours, decline additional training or turn down new positions. The annual economic burden of inadequate child care was estimated to be over $3,000 per working parent, equating to an aggregated economic burden of nearly $37 billion annually.

Populations that are most affected by high child care costs include: 

• Low-income families.
• Parents with more than one child.
• Single mothers.
• Parents of children with special needs.

One approach to improving access to child care is through public funding. The largest source of public funding for child care is the Child Care and Development Block Grant. This federal grant program helps 1.4 million U.S. children annually by providing child care subsidies for low-income working families and funding child care quality initiatives. Many strategies at the state and local levels have been used to increase access to child care for low- and middle-income families. The main recommendation at the federal level is to increase investments in child care assistance, such as subsidizing preschool and connecting families to early learning programs, such as Head Start and Early Head Start.

Belfield, Clive R. “The Economic Impacts of Insufficient Child Care on Working Families.” ReadyNation/Council for a Strong America, September 2018. https://strongnation.s3.amazonaws.com/documents/522/3c5cdb46-eda2-4723-9e8e-f20511cc9f0f.pdf.

Child Care Aware of America. “Demanding Change: Repairing Our Child Care System,” 2022. https://info.childcareaware.org/hubfs/2022-03-FallReport-FINAL%20(1).pdf?utm_campaign=Budget%20Reconciliation%20Fall%202021&utm_source=website&utm_content=22_demandingchange_pdf_update332022.

———. “Parents and the High Cost of Child Care: 2016 Report.” Arlington, VA, January 17, 2017. https://www.childcareaware.org/wp-content/uploads/2017/01/CCA_High_Cost_Report_01-17-17_final.pdf.

———. “The US and the High Price of Child Care: An Examination of a Broken System.” Arlington, VA, 2019. https://info.childcareaware.org/hubfs/2019%20Price%20of%20Care%20State%20Sheets/Final-TheUSandtheHighPriceofChildCare-AnExaminationofaBrokenSystem.pdf.

Giannarelli, Linda, Gina Adams, Sarah Minton, and Kelly Dwyer. “What If We Expanded Child Care Subsidies?: A National and State Perspective.” Washington, D.C.: Urban Institute, June 2019. https://www.urban.org/sites/default/files/publication/100284/what_if_we_expanded_child_care_subsidies_6.pdf.

U.S. Chamber of Commerce Foundation. “Piecing Together Solutions: The Importance of Childcare to U.S. Families and Businesses.” U.S. Chamber of Commerce Foundation, Center for Education and Workforce, December 2020. https://www.uschamberfoundation.org/sites/default/files/EarlyEd_Minis_Report6_121420_Final.pdf.

Whitehurst, Grover J. “Russ.” “Why the Federal Government Should Subsidize Childcare and How to Pay for It.” Evidence Speaks Reports Vol 2, #11. Brookings, March 9, 2017. https://www.brookings.edu/research/why-the-federal-government-should-subsidize-childcare-and-how-to-pay-for-it/.