Infant Child Care Affordability in South Dakota

South Dakota

Child care expenses 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. Child care can be formal or informal (with the help of family, friends or neighbors). Many parents rely on center-based child care, which comes in many forms, including day nurseries, nursery schools and preschools. Accessible and affordable child care allows parents to work, supporting their families and contributing to the economy. 

The demand for child care is rising as the number of women in the workforce increases, particularly since women often assume primary responsibility for child rearing. Parents who work nontraditional hours (weekends, night shifts or “on-call scheduling”) are also more likely to face challenges accessing child care. Even lower-quality and internally-sourced child care has become increasingly unaffordable, forcing many parents to become dual earners. Parents with difficulty accessing child care most frequently cite high costs, limited availability and quality concerns as the primary reasons. 

A study of working parents found that inadequate child care has serious negative effects on work performance and career opportunities, disproportionately affecting women. Among parents who faced child care challenges, 59% of women reported negative impacts on their career opportunities compared with 44% of men, and 43% of women reported decreased work performance compared with 36% of men. Roughly 25% of these working parents had to reduce work hours, decline additional training or turn down new positions due to problems accessing child care. 

Child care for one child costs an average of 8%-19% of a family’s annual income. Yearly child care costs for infants were higher than for toddler, preschool and school-age children and ranged from $8,000-$17,000 in 2022 dollars. Lack of access to affordable child care costs the U.S. economy $122 billion annually in lost earnings, worker productivity and revenue.

Populations most affected by high child care costs include: 

• Low-income families.
• Families with more than one child.

• Families with children with special needs.
• Households with divorced or single parents.
• Hispanic/Latino families compared with non-Hispanic/Latino families.
• Counties with a majority Black population compared with counties with a majority white population.

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 children in the U.S. annually by providing child care subsidies for low-income working families and funding child care quality initiatives. 

Many strategies at state and local levels have been used to increase access to child care for low- and middle-income families. Recommendations at the federal level include increasing investments in child care assistance, such as preschool subsidies, and connecting families to early learning programs like Head Start and Early Head Start. 

There is a great need for federal policy action as well. Currently under review by Congress, the proposed Child Care for Working Families Act would improve access to affordable child care for families with children ages 0-5. If passed, this legislation will cap costs for working families, improve the quality of child care and support higher wages for child care workers.

Infant care is typically the most expensive type of child care due to the greater level of individual attention infants require. Statewide policies that provide families with access to paid parental leave can help caregivers save money on costly infant care. Research shows that 1 in 4 mothers return to work just two weeks after delivery, and the majority report wishing they could take longer leave if they could afford it. Paid parental leave gives families more time to care for their infants at home, reducing immediate demand for infant care, saving families thousands in child care costs and supporting critical early bonding and development.

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

Child Care Aware of America. Parents and the High Cost of Child Care: 2017 Report. Arlington, VA: Child Care Aware of America, December 2017. https://www.childcareaware.org/wp-content/uploads/2017/12/2017_CCA_High_Cost_Report_FINAL.pdf.

Child Care Aware of America. The US and the High Price of Child Care: An Examination of a Broken System. 2019 Report. Arlington, VA: Child Care Aware of America, 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.

Harknett, Kristen, Daniel Schneider, and Sigrid Luhr. “Who Cares If Parents Have Unpredictable Work Schedules?: Just-in-Time Work Schedules and Child Care Arrangements.” Social Problems 69, no. 1 (January 25, 2022): 164–83. https://doi.org/10.1093/socpro/spaa020.

Haynie, Kristina, Clare Waterman, and Jillian Ritter. The Year in Child Care: 2021 Data, Analysis and Recommendations. Catalyzing Growth: Using Data to Change Child Care. Arlington, VA: Child Care Aware of America, 2023. https://info.childcareaware.org/hubfs/Fall%20Report%2023%20-%20Catalyzing%20Growth%20-%20Using%20Data%20to%20Change%20Child%20Care%20(FINAL).pdf.

Landivar, Liana Christin, Nikki L. Graf, and Giorleny Altamirano Rayo. Childcare Prices in Local Areas: Initial Findings from the National Database of Child Care Prices. Issue Brief. Washington, D.C.: U.S. Department of Labor, Women’s Bureau, January 2023. https://www.dol.gov/sites/dolgov/files/WB/NDCP/508_WB_IssueBrief-NDCP-20230213.pdf.

Leonce, Tesa E. “The Inevitable Rise in Dual-Income Households and the Intertemporal Effects on Labor Markets.” Compensation & Benefits Review 52, no. 2 (April 2020): 64–76. https://doi.org/10.1177/0886368719900032.

Matthews, Hannah, Karen Schulman, Julie Vogtman, Christine Johnson-Staub, and Helen Blank. Implementing the Child Care and Development Block Grant Reauthorization: A Guide for States. Washington, D.C.: The Center for Law and Social Policy and the National Women’s Law Center, 2015. https://www.clasp.org/sites/default/files/public/resources-and-publications/publication-1/ccdbg-guide-for-states-final.pdf.

Prenatal-to-3 Policy Impact Center. Paid Family Leave and Affordable Child Care Are Integral to a Strong Prenatal-to-3 System of Care. Research Brief. Austin, TX: The University of Texas at Austin, LBJ School of Public Affairs, February 2021. https://pn3policy.org/wp-content/uploads/2021/02/PN3PolicyImpactCenter_B004202102_PaidFamilyLeaveandChildCare.pdf.

Rothwell, David W. State Paid Parental Leave Policy: A Tool to Reduce Inequality Within and Between Families. Policy Brief. St. Paul, MN: National Council on Family Relations, January 10, 2024. https://www.ncfr.org/policy/research-and-policy-briefs/state-paid-parental-leave-policy.

Schochet, Leila. The Child Care Crisis Is Keeping Women Out of the Workforce. Report. Center for American Progress, March 28, 2019. https://www.americanprogress.org/article/child-care-crisis-keeping-women-workforce/.

U.S. Chamber of Commerce. Piecing Together Solutions: The Importance of Childcare to U.S. Families and Businesses. Vol. 06: The Importance of Childcare. 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.

Varela, Natalie Vega, and Leyla Moridi. The Free-Time Gender Gap: How Unpaid Care and Household Labor Reinforces Women’s Inequality. Report. Gender Equity Policy Institute, October 3, 2024. https://thegepi.org/GEPI-Free-Time-Gender-Gap-Report.pdf.

Whitehurst, Grover J. (Russ). “Why the Federal Government Should Subsidize Childcare and How to Pay for It.” Evidence Speaks Reports 2, no. 11 (March 9, 2017).https://www.brookings.edu/research/why-the-federal-government-should-subsidize-childcare-and-how-to-pay-for-it/.