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Families across the country are bracing for the end of pandemic-era programs that, for many, are the only things keeping child care affordable.
Federal funding from President Biden's American Rescue Plan expires this Saturday — the end of fiscal year 2023.
One key area in which U.S. families could see the most immediate effect is child care.
According to research by the Century Foundation, the approaching end of the American Rescue Plan funding could affect the care of over 3 million children.
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Millions of children to lose child care service
More than three million American families may lose child care in the coming days and weeks. President Joe Bidens American Rescue Plan, which was put in place during the pandemic, is set to expire on Saturday, and childcare providers could be hit the hardest. Fox 10’s Brian Webb reports.
"More than 70,000 child care programs—one-third of those supported by American Rescue Plan stabilization funding—will likely close, and approximately 3.2 million children could lose their child care spots."
The reported added, "The loss in tax and business revenue will likely cost states $10.6 billion in economic activity per year."
The child care industry is in a uniquely compromised position following the yearslong pandemic.
>>Three million children set to lose child care with expiration of federal funding
While other sectors have bounced back, childcare services remain understaffed and prohibitively expensive for many families.
"The reality is the child care industry was already suffering before the pandemic. It was already under-invested in. Many families could not afford child care," Family Values at Work Executive Director Josephine Kalipeni told "Fox & Friends" in an interview. "These dollars are set to expire if Congress doesn't act, putting many families […] in crisis."
In approximately 28 states, child care has become functionally more expensive for families than college tuition.
A sign is displayed on a government building that is closed because of a US government shutdown in Washington, DC, on December 22, 2018. (File photo by ANDREW CABALLERO-REYNOLDS/AFP via Getty Images)
"When the ARPA stabilization funds cease, child care will be starved of resources," the Century Foundation claims. "The child care staffing shortage that preceded and continued through the pandemic will return with a vengeance, putting upward pressure on prices as child care businesses choose between raising wages to attract early educators—or going out of business."
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