Child Care and Early Education Research Connections

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FAQ: Provider reimbursement rates


Providing quality, affordable, and accessible child care is expensive. Well-qualified early childhood educators are essential to providing high-quality early learning and care opportunities for children from birth through age five. Due to the labor-intensive nature of their work, the true cost of providing child care is more than many families can afford. On top of this, providers are often reimbursed by the state government to offset the costs of serving children with subsidies at too low of a rate, making their already stark financial situation untenable. Low reimbursement rates can lead to low compensation for early educators, passing higher costs onto families, and ultimately forcing providers to perform a complex juggling act to remain financially afloat. These challenges result in an unstable system where early childhood educators leave the field entirely and families experience difficulty accessing the care they need. Provider reimbursement rates are an essential part of ensuring eligible children have access to child care and that providers have the financial support they need. (author abstract)

Resource Type:
Fact Sheets & Briefs
United States
State(s)/Territories/Tribal Nation(s):
All states

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