As the clock ticks down on the expiry of pandemic-era federal funding on September 30, parents and child care providers are bracing themselves for a harsh reality. Concerns about the impending "Child Care Funding Crisis" have quickly taken center stage, as providers fear that the withdrawal of these critical funds could create a devastating collapse in the child care industry. In turn, working parents find themselves burdened with rising costs and uncertainties about their children's care.
According to a study from the Century Foundation, the expiration of these funds could mean approximately 130,000 children in Illinois without child care, around 2,800 child care centers closing their doors, and over 11,300 child care providers losing their jobs. This funding, part of the American Rescue Plan, has had a profound impact on the child care industry by supporting staffing, keeping costs manageable for parents, and ensuring the safety of the children in care centers.
Chicago Sun-Times reported that almost all child care providers in the country are concerned about the repercussions of this funding loss on themselves, their staff, and the families they serve. Some centers may have to close their doors, while others may have to limit the number of children they accept or raise their fees.
In a recent discussion on NPR Illinois, Julie Kashen, director for women's economic justice at The Century Foundation, highlighted the potential effects of this funding loss on both families and the broader economy. She pointed out that the loss of access to affordable child care could lead to job losses for not just child care providers, but also parents who may have to leave their jobs or reduce their work hours to care for their children.
Already, NPR Illinois showcased Corrine Hendrickson, a child care provider in Wisconsin, who had to raise her rates significantly to stay open as the available funding dries up.
As states scramble to find alternative funding solutions, Illinois has started investing in early child education with Gov. J.B. Pritzker's multiyear plan, Smart Start Illinois. The state plans to allocate $250 million to eliminate preschool deserts, stabilize the child care workforce and expand early intervention programs. However, state support may not be enough to fill the gaps left by the federal funding drop, emphasizing the need for federal support in addressing the child care crisis.
Furthermore, Illinois Action for Children has been lobbying for an expansion of the Child Care Assistance Program, which provides financial support for low-income families in need of child care services. By increasing the eligibility to 300% of the federal poverty level, more families could access the support they need without further increasing the burden on the already struggling child care providers.
