Infant Child Care Affordability in United States

United States

Child care expenses can be staggering, with the average annual price of center-based care for two children surpassing the average cost of rent or mortgage payments in most 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 early childhood 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. The high price of child care has forced many parents to become dual earners, and single parents to work longer hours or take on additional jobs to pay for quality care. 

A study of working parents found that inadequate child care has serious negative effects on work performance and career opportunities. Nearly 50% of these working parents had to reduce their work hours and more than a quarter had to quit a job. Parents with difficulty accessing child care cite high costs, limited availability and quality concerns.

Child care for one child costs an average of 8% to 19% of a family’s annual income, well above the 7% federal affordability standard. Yearly child care costs for infants were higher than for toddlers, preschool and school-age children and ranged from roughly $8,000 to $17,000 in 2022 dollars. Lack of access to quality and affordable child care costs the U.S. economy $172 billion annually in lost earnings and reduced worker productivity, impacting parents, employers and taxpayers.

Populations most affected by high child care costs include: 

• Low-income families, particularly those with incomes between 150% and 199% of the poverty level. 
• 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 to low-income working families and funding quality initiatives in child care. 

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. 

Statewide policies that provide families with access to paid parental leave can help caregivers save money on infant care costs. 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.

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