New data shows child care crisis worsening after loss of federal funds
Data from a new survey of child care providers and families – developed by the RAPID Survey Project in partnership with the National Association for the Education of Young Children (NAEYC) – shows child care providers and families are facing deep challenges following the September expiration of $25 billion in pandemic-related child care stabilization funds.
As they expected, child care providers across the country are raising tuition rates, cutting educator wages and benefits, and serving fewer children following the end of their stabilization grants. This is exacerbating the child care crisis impacting families, educators, businesses, and young children. This timely survey of more than 1,000 providers and 1,000 families with small children arrives as nearly 7,000 early childhood educators prepare to gather in Nashville later this week for NAEYC’s annual conference.
Key findings of the survey include:
• 29 percent of families reported child care tuition increases in the past month, with higher rates for families of color.
• 28 percent of providers who lost stabilization grants cut educator wages or could not sustain raises.
• 24 percent of providers without stabilization grants now serve fewer children, exacerbating shortages.
• 79 percent of parents looking for care are having difficulty finding openings. NAEYC’s full brief on the survey is found at https://www.naeyc.org/sites/default/files/globally-shared/nov_survey_br….
"Last year, providers told us what they thought would happen when stabilization grants ran out – and now, those predictions are being realized. Unfortunately, these painful steps will make life harder for families and educators in communities across the country," said NAEYC CEO Michelle Kang.
"We stand at a crossroad for child care in America, and lawmakers have the power to stabilize the system before it gets worse, which begins with passing the President's $16 billion child care funding request," Kang added.
Federal child care stabilization funds helped save the child care sector throughout the pandemic, reaching more than 220,000 child care programs across the country serving nearly 10 million children.
Headlines already are popping up around the country announcing child care program closures in the wake of the end of stabilization grants and detailing their impacts on children and families. Previous NAEYC and RAPID surveys have found that 25-30 percent of child care programs said they would have closed without the funds from Congress; if a similar proportion of programs close their doors following the expiration of funding without additional investments, an estimated 3.2 million children across the country could ultimately lose access to care.
In its brief, NAEYC calls on Congress to make significant, sustained investments in child care to ensure that all families continue to have access to quality, affordable care they need with early childhood educators who are fairly compensated for the valuable work they do.
Survey Methodology
In September 2023, NAEYC authored a set of questions specific to the end of stabilization grant funding that were added to the October monthly childcare provider and household survey instruments administered by RAPID. This set of questions will continue to be included in the instruments over the coming months. Figures from the RAPID provider survey are based upon 1,067 responses from providers; figures from households with young children are based upon 1,022 responses from parents of young children under 6 years of age. More detail is available in the survey brief.
About NAEYC: The National Association for the Education of Young Children (NAEYC) is a professional membership organization that works to promote high-quality early learning for all young children, birth through age 8, by connecting early childhood practice, policy, and research. We advance a diverse, dynamic early childhood profession and support all who care for, educate, and work on behalf of young children. The association comprises nearly 60,000 individual members of the early childhood community and more than 50 Affiliates, all committed to delivering on the promise of high-quality early learning. Together, we work to achieve a collective vision: that all young children thrive and learn in a society dedicated to ensuring they reach their full potential.